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MARGIN ANALYSIS OF TRADE ADMINISTRATION AND
MARKETING STRATEGY OF FISH CATCH USING
CANTRANG AT PPP KLIDANG LOR, BATANG CENTRAL
JAVA
Intan Kusuma Dewi Ratnasari
1
, Dian Wijayanto
2
, Herry Boesono
2
12
Diponegoro University, Indonesia
intankusuma47@gmail.com
1
, d[email protected]
2
, [email protected]m
3
KEYWORDS
PPP Klidang Lor,
Cantrang, R/C,
Fisherman's Share,
SWOT
ARTICLE INFO
Accepted:
May 21
th
2022
Revised:
June 7
th
2022
Approved:
June 14
th
2022
ABSTRACT
PPP Klidang Lor Batang is one of the fishing ports still dominated by cantrang
fishing gear. The purpose of this study was to analyze the margins of trading and
marketing strategies by the waiters who use cantrang. This study used a
descriptive method with data collection by observing directly in the field at PPP
Klidang Lor. The population used in taking respondents in this study were
fishermen who used cantrang fishing gear. Data analysis was carried out using
qualitative analysis and quantitative analysis. The catch and variety is one of the
factors for the high and low income of fishermen. The catch that is traded to TPI,
middlemen, retailers, or even consumers without a good trading strategy will not
maximize the income earned by fishermen. By analyzing the trading system
margins of fishermen, TPI, middlemen, retailers, and consumers, alternative
strategies for fishermen will be known in order to increase marketing of the catch
they get. The purpose of this study is to determine the margin of trade and the
composition of catches, marketing channels. Analysis of the data used to
determine the value of the margin of trade using BEP, HPP, R/C, Fisherman's
share. Meanwhile, the marketing strategy uses SWOT analysis to determine the
internal and external factors of marketing the fisherman's catch using cantrang
fishing gear.
INTRODUCTION
Batang Regency is one of the regencies located on the north coast of Java. According
to the Marine and Fisheries Service of Batang Regency (2015), Batang Regency is located on
the north coast of Central Java with an area of 788,642 km² and has a coastline of 38.72 km,
stretching along the north coast, which is a coastal area. Most of the population make a living
in the fishing sector (Riza & Islamy, 2020). Batang Regency has a very large capture
fisheries resource potential. The fishing gear used in Batang Regency, the fishing gear used in
Batang Regency varies, including Gill Net, Trammel Net, Wadong/Bubu, Cantrang and Arad.
Cantrang fishing gear used in Batang Regency is still widely used by fishermen. The results
of catching fish using various cantrang fishing gear such as kurisi fish, kuniran, swanggi,
peperek / petek, sand-sand, squid, cotton-kapar, coral jackfruit seeds, and other fish (Farhaby
& Gustomi, 2019).
High fishery production in Batang Regency will be meaningless if it is not supported
by the right trading/marketing system. With the right marketing system, the marketing system
can provide benefits, so it requires the right strategy so that the results obtained can be
maximized (Yapanto, Harahab, & Sudarto, 2021). The right strategy makes the capture
fisheries business grow and can provide benefits for those concerned in selling the fish catch.
Volume 3, Number 8, June 2022
e-ISSN: 2797-6068 and p-ISSN: 2777-0915
[ MARGIN ANALYSIS OF TRADE ADMINISTRATION AND
MARKETING STRATEGY OF FISH CATCH USING CANTRANG
AT PPP KLIDANG LOR, BATANG CENTRAL JAVA]
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Thus, the role of the trade or marketing strategy will be increasingly important for fishermen
to know (Shapiro, 1989).
The marketing process of fish caught by fishermen in Batang Regency, especially in
PPP Klidang Lor Batang, varies widely. This variation in the marketing process is due to the
high diversity, so that directly or indirectly form a complex trading system institution, both in
terms of distribution, market structure, market behavior and the interaction of each market
participant (Layton, 2009). The problem of trading or marketing fishery products is still the
length of the distribution chain, the high price difference (disparity) from producers to
consumers, product continuity that is not guaranteed, product scarcity in certain periods, and
limited marketing support infrastructure (Ilbery & Maye, 2005).
The problems that occur in PP Klidang Lor Batang are colliding with the marketing
network, limited marketing infrastructure, still lack of knowledge about business
management so that the quality of the catch is not maintained. Therefore, with this
background, this research was taken to find out "Analysis of Trading Margins and Marketing
Strategies for Fish Catches Using Cantrang at PPP Klidang Lor, Batang, Central Java"
METHOD RESEARCH
The study used a descriptive method with data collection by observing directly in the
field at PPP Klidang Lor (Tu, Ge, Zhang, & Huang, 2013). The population used in taking
respondents in this study are fishermen who use cantrang fishing gear, both fishermen who
have ships and those who do not have ships, then traders, collectors, retailers, and
stakeholders.
Data analysis
Data analysis was carried out using qualitative analysis and quantitative analysis. The
qualitative analysis was carried out descriptively with the aim of knowing in depth the pattern
of the trade system channel, the involved trading system, the functions of the trade system
performed by each trading system as well as the structure and behavior of the market.
Quantitative analysis is carried out using the analysis of the margins of the trade system, the
share of prices received by fishermen and the ratio of profits and costs.
Marketing Margin Analysis / Fisherman's Share
Analyzing marketing margins, according to (Schroeter & Azzam, 1991) uses the following
formula:
a. Marketing Margin
MP = HK - HP
Where :
MP = Marketing Margin
HK = Price at consumer level
HP = Price at fisherman's level
BP = Marketing costs borne by the marketing agencies involved
KP = Profit earned by the marketing agency involved
b. Total Marketing Cost
BP = BP1 + BP2 + BP3 + ... + BPk
Where :
BP = Total marketing costs
K = 1, 2, 3, ... , n, i.e. the number of marketing agencies involved
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c. Total Marketing Profit
KP = MP - BP
Where :
KP = Total marketing profit MP = Marketing margin BP = Total marketing costs
d. Fisherman's Share
FS =
FS = Fisherman's share HP = Price at fisherman's level HK = Price at consumer level
Marketing Strategy Analysis
The analysis of the marketing strategy used in this study uses descriptive analysis.
Descriptive analysis is used to determine the internal and external factors that influence the
marketing development of cantrang boat production at TPI Klidang Lor Batang and the
analysis used is SWOT analysis (Fauziah & Mulyana, 2018).
RESULT AND DISCUSSION
Marketing Margin
Marketing Margin is the amount of difference in value that exists at the level of consumers
and producers. There are two fish marketing channels in PPP Klidang Lor, Batang Regency.
The total marketing margin (Rp/Kg) on channel one is Rp13,200/Kg. The percentage of
marketing margin on marketing channel one is 38%. Fisherman's share value in marketing
channel one is 38%. The percentage of marketing margin in channel two is 64% with a total
marketing margin of Rp.4501/Kg. The high and low marketing margins can be an indicator of
the efficiency of a marketing system, but in fisheries marketing, marketing margins are not
the only determinant of marketing efficiency. Determination of marketing efficiency in the
fishery marketing system is by comparing the value of fisherman's share (Bambang, 2018).
Fisherman’s Share
Fisherman's share is an analysis used to compare the price received by fishermen with
the price paid by the final consumer. There are two fish marketing channels in Batang
Regency. Each marketing channel has a different Fisherman's share value. The first channel
has a Fisherman's share of 38%. The second channel with fisherman's share of 64%. The
value of Fihserman's share from marketing 1 is 38%. Fihserman's share has a meaning that is
inversely proportional to the marketing margin, the larger the fisherman's share, the higher
the share obtained by fishermen. This is confirmed by (Dacks, Lewis, James, Marino, &
Oleson, 2020) which states that marketing is categorized as efficient when the value of
fisherman's share is greater than the marketing margin.
Marketing Efficiency
Marketing efficiency is an indicator of how the marketing system works. The
marketing system can be considered efficient if the value of the marketing margin is lower
than the value of Fisherman's share. Marketing efficiency in the marketing system can be
determined by the percentage of Fisherman's share and marketing margin. Marketing channel
I shows that fisherman's share is 38% and marketing margin is 62%. Marketing channel 2 has
a fisherman's share of 64% and a marketing margin of 36%. The value of marketing margin
HP
HK
X 100%
[ MARGIN ANALYSIS OF TRADE ADMINISTRATION AND
MARKETING STRATEGY OF FISH CATCH USING CANTRANG
AT PPP KLIDANG LOR, BATANG CENTRAL JAVA]
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and fisherman share in channels I and II are 65% and 35%, respectively. Marketing efficiency
research conducted by (Cahyono et al., 2020) shows that if the fisherman's share received by
fishermen is >50%, it indicates that the marketing is efficient, whereas if the share received
by fishermen is <50%, then the marketing is not efficient.
Marketing in the Covid-19 Era
The Covid-19 outbreak has hit the whole world and has caused obstacles to human
activities. Human activities such as work and trade are restricted in their movement to
prevent the spread of the epidemic. This research was conducted during Covid-19 in
Indonesia in September 2020 (Huveneers et al., 2021). Fishery marketing has its own
problems, especially in big cities. People in big cities prefer to avoid crowded places such as
markets which are synonymous with slums and social conditions that are difficult to regulate.
Marketing in this modern era is certainly easier because of the existence of information
technology that allows buying and selling transactions online. According to fish traders at
TPI Klidang Lor, consumers from outside the city are currently facilitated by communication
applications such as Whatsapp, which can send photos quickly and easily. A situation in the
middle of a pandemic like this requires you to be creative.
Marketing strategy
SWOT analysis
SWOT analysis was conducted to determine the factors of strength, weakness,
opportunity and threat. This analysis is used to find out what are the strengths, weaknesses,
opportunities and threats of a business (Piercy & Giles, 1989). This analysis can be used for
decision making and determining strategic steps to face competition. The following is a
SWOT analysis table presented in table 1.
Table 1. Internal Factors of SWOT
INTERNAL FACTORS
STRATEGIC FACTORS
LEVEL
WEIGHT
RATING
SCORE
STRENGTH
Fish Products that
Consumers are
interested in
2
0,11
4
0,44
Abundant Swanggi and
Turmeric Catches
1
0,06
3
0,17
ABK has experience at
sea min. 2 years
1
0,06
3
0,17
Fishing is not affected
by the season
2
0,11
4
0,44
Having more than … a
fleet of ships
1
0,06
3
0,17
Have other fishing gear
in other fleets
1
0,06
3
0,17
WEAKNESS
The selling price of
other fish catches is low
3
0,17
2,9
0,83
Large operating costs
3
0,06
2,9
0,17
Still using the traditional
way of fishing
Decreased fish catch due
2
0,06
2
0,17
3
0,11
2,9
0,44
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INTERNAL FACTORS
STRATEGIC FACTORS
LEVEL
WEIGHT
RATING
SCORE
to climate change
3
0,11
2,9
0,44
Fish prices are
determined by
middlemen/TPI
3
0,06
2,9
0,17
TOTAL
18
1
37
3,78
Source: Research, 2020.
Based on the table above, it can be seen that the biggest profit is in fish products that
are in demand by consumers and the abundant catches of kuniran and swanggi fish. The two
fish are an advantage because the fishing gear used is cantrang and the two fish are demersal
fish. Catching using cantrang is not affected by the season. This can happen because cantrang
can be operated at any time. Cantrang operation is adjusted to the needs or wishes of the
captain. Cantrang can be operated either day or night. These conditions allow cantrang not
influenced by the season. Research by (Aithal, 2016). explains that the Internal factor matrix
is used to analyze internal factors, classify them into strengths and weaknesses, then weight
them. The EFE matrix is used to analyze external factors, classify them into opportunities and
threats for the Cantrang business at PPP Klidang Lor, then weighted.
The strongest deficiencies or weaknesses are the low quality of fish, overfishing
fishing areas and the low quality of the fish caught. The low quality of the catch will affect
the selling price of the fish. If the fish sold is of good condition or quality, the selling price
will increase, but if the quality of the fish is poor and not fresh, the selling price of the fish
will decrease. The cost of large supplies is influenced by the distance to the fishing area or
the frequency of fishing by fishermen.
Table 2. External Factors SWOT analysis
EXTERNAL FACTORS
STRATEGIC FACTORS
LEVEL
WEIGHT
RATING
SCORE
Opportunity
The demand for seafood in
the big market
3
0,12
5
0,35
There is a role for the
government in providing
fishing skills
1
0,12
3
0,35
The existence of business
capital loans from banks
and non-bank institutions
1
0,08
3
0,16
The catch can be marketed
online
2
0,12
4
0,35
The catch can be sold
elsewhere
2
0,12
4
0,35
There is a fishing
association
1
0,12
3
0,35
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MARKETING STRATEGY OF FISH CATCH USING CANTRANG
AT PPP KLIDANG LOR, BATANG CENTRAL JAVA]
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THREAT
High level of competition
for fishermen
1
0,04
1
0,04
Banning Cantrang by the
Government
1
0,04
1
0,04
High catch fees
1
0,04
1
0,04
There are other fishing
gear
1
0,04
1
0,04
Overfishing area
3
0,12
2,9
0,35
There is a conflict between
cantrang fishermen and
other fishing gear
1
0,04
1
0,04
TOTAL
25
1
29,9
2,45
Source; Research, 2020.
Based on the table above, it can be seen that the highest profit is the increasing
demand for seafood. The increasing demand for marine products creates added value or profit
for capture fisheries business actors. The increase in demand can be used for the preparation
of marketing strategies. A good strategy must of course be accompanied by good handling of
the fish caught. If the quality of the fish catch is poor, the consumer's interest and demand for
marine fish will decrease. Research by Mustajib states that the SO (Strengths-Opportunities)
Strategy is a strategy that aims to use the strengths (S) of fisheries entrepreneurs in PPP
Klidang Lor, Batang Regency to take advantage of existing opportunities (O). While the WO
(Weakness-Opportunities) strategy is a strategy that serves to minimize existing weaknesses
(W) to take advantage of existing opportunities (O). The SO strategy or strengths-opportunity
strategy uses the company's internal strengths to take advantage of external opportunities. So
if in a theme there are great internal strengths and visible external opportunities that affect the
internal position, then this can be considered to have advantages.
The highest threat is overfishing fishing grounds. Overfishing fishing areas will affect
fish catches. If a fishing area experiences overfishing, fishermen will increase their efforts to
increase catches. If the effort made to get fish increases, the cost of supplies such as diesel
fuel and the length of the fishing trip will increase and take longer. This can be a loss for
fishermen if at the time of landing, but fish stocks are abundant, the selling price of fish will
decrease. Research by Mandika states that after each SWOT element is calculated its score,
then these elements are linked together in the form of a matrix to obtain several alternative
policy strategies. To determine the priority of policies that must be carried out, then the score
is summed from the relationship between the SWOT elements contained in an alternative
policy, the total score will determine the priority ranking of policy alternatives in PPP
Klidang Lor Batang.
SWOT Matrix
Based on the SWOT analysis used, several marketing strategy results are obtained
based on what strengths and weaknesses exist. The analysis is done by combining Strength
with Opportunity, Weakness with Opportunity.
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Table 3. The analysis is carried out by combining Strength with Opportunity, Weakness
with Opportunity
Strength
Fish products are in demand by consumers
Abundant Swanggi and Turmeric Catches
ABK has experience at sea min. 2 years
Fishing is not affected by the season
Having more than … a fleet of ships
Have other fishing gear in other fleets
Weaknesses
The selling price of other fish
catches is low
Large operating costs
Still using the traditional way of
fishing
Decreased fish catch due to
climate change
Fish prices are determined by
middlemen/TPI
The low quality of the catch of
fish at the time of catching
Opportunity
The demand for seafood in the big
market
There is a role for the government
in providing fishing skills
The existence of business capital
loans from banks and non-bank
institutions
The catch can be marketed online
The catch can be sold elsewhere
There is a fishing association
S – O . Strategy
TPI arrangement to be more
neat and hygienic
ABK training before going
sailing
The catch is put into cold
storage for a longer shelf life
Fishermen association
institutions can be a forum for
marketing and training in
online fish sales
W – O . Strategy
TPI arrangement to be more
hygienic and closed to reduce
solar radiation
Creating an integrated system
between fishermen and traders
regarding selling prices
Rely on weather information
systems and fishing area
predictions to reduce mileage and
fuel consumption
Threat
High level of competition for
fishermen
Banning Cantrang by the
Government
High catch fees
There are other fishing gear
Overfishing area
There is a conflict between
cantrang fishermen and other
fishing gear
S – T Strategi Strategy
Adjusting fishing gear
construction according to
government recommendations
Regulating the pattern of
departure and return of fellow
fishermen
Movement of the auction
system at the time of
unloading
Strategy O – T
The government is increasing its
role by adjusting retribution rates
and controlling fuel prices
Development of the function of
fishermen's associations as a
forum for problem solving and
selling fish
Source: Marketing Analysis Research at PPP Klidang Lor Batang, 2021.
Based on table 3, there are several marketing strategies based on the group of internal
factors, namely strength - weakness and weakness - opportunity. Strategies that can be given
to the strength-weakness group are structuring the TPI to be neater and hygienic, training the
crew before going sailing, the catch being put into cold storage for a longer shelf life, fishing
associations can be a place for marketing and training in online fish sales . The strategy is
prepared based on the strengths and opportunities that exist from several factors that exist in
PPP Klidang Lor Batang. Research by Triyastuti shows that SWOT analysis is used to obtain
an optimal and appropriate marketing strategy. The strategy that exists in this group is the
arrangement of the TPI to be more hygienic and closed to reduce solar radiation. Research by
[ MARGIN ANALYSIS OF TRADE ADMINISTRATION AND
MARKETING STRATEGY OF FISH CATCH USING CANTRANG
AT PPP KLIDANG LOR, BATANG CENTRAL JAVA]
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Tarigan et al (2018) states that the WO Strategy is a weakness - opportunity strategy, this
strategy is utilized based on the utilization of existing opportunities by minimizing existing
weaknesses.
The next marketing strategy is in the strength – threat group. The strategies in this
group are adjusting the construction of fishing gear according to government
recommendations, regulating the departure and return patterns of fellow fishermen and
moving the auction system at the time of unloading. The next strategy is the use of an auction
system at each landing of the caught fish to make it more transparent and fair. Research by
Yusuf and Muhartono (2017) explains that threat factors are conditions that originate from
outside and have the potential to weaken the performance of capture fisheries business
development in North Kayong. The next strategy is a combination of opportunity - threat.
The strategy for this group is for the Government to increase its role by adjusting levy rates
and controlling fuel prices and developing the function of fishermen's associations as a forum
for problem solving and selling fish. Research by Simbolon states that a strategy for
monitoring fishing areas needs to be carried out considering the potential for conflicts that
occur due to foreign or non-local fishermen catching octopuses in Banggai Laut Regency.
Strategy Position
Based on the SWOT analysis, four types of strategies were identified: strengths –
opportunities (use strengths to take advantage of opportunities), strengths-threats (use
strengths to reduce threats), weaknesses – opportunities (reduce weaknesses by taking
advantage of opportunities) and Weaknesses – Threats (reduce weaknesses by preventing
threats). SWOT analysis using environmental performance data and economic evaluation.
Based on the matrix above, it can be given an overview of what strategic quadrants can be
given to fishery businesses in PPP Klidang Lor Batang which is presented in the following
figure.
5
4
3
Quadrant
IV (W –
O)
2
Quadrant
I
(S – O)
1
-5
-4
-3
-2
-1
-1
1
2
3
4
5
-2
Quadrant
III (O –
T )
-3
Quadrant
II
(S – T)
-4
-5
Figure 1. SWOT Analysis Position Matrix.
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Based on the SWOT scoring calculation, the results were 2.45 and 3.78. These results
indicate that the total calculation is in quadrant I. Quadrant I is a SWOT strategy by
combining strength – opportunity. Strategies in quadrant I include Structuring TPI to be
neater and more hygienic, ABK training before going sailing, Catches are put in cold storage
for a longer shelf life, Fishermen's association institutions can be a forum for marketing and
training on online fish sales. Research by Astuti explains that the position in Quadrant I
explains that the business being run has great opportunities and strengths so that it can take
advantage of existing opportunities. This condition supports an aggressive growth policy
(growth oriented strategy).
CONCLUSION
There are two fish marketing channels in Batang Regency, the first channel has a
Fisherman's share value of 38% at Rp. 13,200/Kg, while the second channel with Fisherman's
share is 64% at Rp.4501/Kg. The marketing strategy used in this study is based on a group of
internal factors, namely strength - weakness and weakness - opportunity. In the strength –
weakness group, they are arranged based on the TPI arrangement to make it more neat and
hygienic, training crew members before going sailing, catches are put in cold storage for a
longer shelf life, fishing associations can be a place for marketing and training on online fish
sales, from groups weakness – opportunity is to market fish with good catch quality so that it
can increase the selling price, on the other hand, increasing quality must be accompanied by
costs.
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