Government Policy and Its Impact

Oct 13, 2025 by leolavanderia.com.br 13 views

Introduction

In the highly competitive fuel industry, companies must continually adapt to changing market conditions and consumer preferences to remain successful. PT Petro Andalan Nusantara, a subsidiary of the Wilmar Group, specializes in general commercial fuel oil and faces significant challenges in selling its products, particularly Petro-4, a type of diesel. From 2013 to 2014, the company experienced a drastic decline in sales compared to 2012. This study aims to examine the effect of marketing mix and government policies on improving Petro-4 sales volume.

Marketing Mix Analysis

The marketing mix has a crucial role in determining product success in the market. The four main elements of the marketing mix – product elements, prices, distribution channels, and promotions – are interrelated and can influence each other. In the context of Petro-4, the quality of the products produced must meet consumer expectations. Competitive prices will determine the attractiveness of products in the increasingly stringent market. Distribution channels are also essential; the availability of products in various locations can affect the comfort of consumers in accessing fuel. Effective promotion can help create awareness about products and increase purchase interest. Therefore, a solid marketing mix strategy is the key to overcoming the decline in sales experienced by PT Petro Andalan Nusantara.

Product Elements

Product elements refer to the characteristics of a product that make it unique and attractive to consumers. In the case of Petro-4, the quality of the product is crucial in meeting consumer expectations. The product must be reliable, efficient, and environmentally friendly to appeal to consumers. PT Petro Andalan Nusantara must ensure that its product meets these standards to remain competitive in the market.

Price Strategy

Price strategy refers to the pricing policy adopted by a company to attract and retain customers. In the context of Petro-4, competitive pricing is essential to determine the attractiveness of products in the increasingly stringent market. PT Petro Andalan Nusantara must adopt a pricing strategy that balances profitability with consumer affordability to remain competitive.

Distribution Channels

Distribution channels refer to the network of intermediaries that facilitate the flow of products from the manufacturer to the consumer. In the case of Petro-4, the availability of products in various locations can affect the comfort of consumers in accessing fuel. PT Petro Andalan Nusantara must ensure that its distribution channels are efficient and effective to meet consumer needs.

Promotions

Promotions refer to the activities undertaken by a company to create awareness about its products and increase purchase interest. In the context of Petro-4, effective promotion can help create awareness about products and increase purchase interest. PT Petro Andalan Nusantara must adopt a promotion strategy that targets the right audience and creates a positive brand image.

Government Policy and Its Impact

Government policies, especially regarding the mandatory mixing of vegetable fuels (biodiesel) into diesel oil, have a significant impact on the fuel industry. Minister of Energy and Mineral Resources Regulation No. 25 of 2013 and the amendment No. 12 of 2015, which regulates the mixing of biodiesel, creates opportunities for PT Petro Andalan Nusantara to adapt and increase the competitiveness of its products. In this study, the results show that government policy has a significant influence on increasing the volume of Petro-4 sales. By implementing this policy, companies can not only meet existing regulations but can also increase consumer confidence in products that are more environmentally friendly.

Research Methodology

The population of this study includes all companies that are consumers of PT Petro Andalan Nusantara with operational branch units throughout Indonesia. Sampling techniques using sampling areas, and data are collected through questionnaires that have been tested for validity and reliability. The analysis process is carried out with a quantitative approach, using multiple correlation and linear regression analysis with the help of the SPSS version 21 program.

Research Result

From the simultaneous test, research shows that the marketing mix and government policy jointly have a significant effect on increasing the volume of Petro-4 sales. Meanwhile, the results of partial analysis identify that government policy is the most influential factor, followed by promotion and distribution channels. Overall, 42.7% increase in the volume of Petro-4 sales can be explained by these variables, while 57.3% is caused by other variables that are not included in the study.

Conclusion

This study shows that to increase the volume of Petro-4 sales, PT Petro Andalan Nusantara needs to focus on strengthening the marketing mix which includes product quality, price strategy, efficient distribution, and attractive promotion. In addition, support from government policy is also very vital to create a conducive environment for sales growth. Implementation of the right strategy based on this analysis is expected to assist companies in overcoming decreased sales and improving the market position of Petro-4 products going forward.

Recommendations

Based on the findings of this study, the following recommendations are made:

PT Petro Andalan Nusantara should focus on strengthening the marketing mix by improving product quality, adopting a competitive pricing strategy, and ensuring efficient distribution channels.
The company should adopt a promotion strategy that targets the right audience and creates a positive brand image.
PT Petro Andalan Nusantara should take advantage of government policies to increase the competitiveness of its products and create a conducive environment for sales growth.
The company should continuously monitor and evaluate the effectiveness of its marketing mix and government policy to ensure that it remains competitive in the market.

By implementing these recommendations, PT Petro Andalan Nusantara can increase the volume of Petro-4 sales and improve its market position in the fuel industry.

Q: What is the marketing mix, and how does it affect Petro 4 fuel sales?

A: The marketing mix refers to the four main elements of a company's marketing strategy: product elements, price strategy, distribution channels, and promotions. In the context of Petro 4 fuel sales, a solid marketing mix strategy is crucial in determining product success in the market. By focusing on product quality, competitive pricing, efficient distribution, and attractive promotion, PT Petro Andalan Nusantara can increase the volume of Petro 4 fuel sales.

Q: How does government policy affect Petro 4 fuel sales?

A: Government policies, especially regarding the mandatory mixing of vegetable fuels (biodiesel) into diesel oil, have a significant impact on the fuel industry. By implementing this policy, companies can not only meet existing regulations but can also increase consumer confidence in products that are more environmentally friendly. In this study, the results show that government policy has a significant influence on increasing the volume of Petro 4 fuel sales.

Q: What is the role of product elements in increasing Petro 4 fuel sales?

A: Product elements refer to the characteristics of a product that make it unique and attractive to consumers. In the case of Petro 4, the quality of the product is crucial in meeting consumer expectations. PT Petro Andalan Nusantara must ensure that its product meets these standards to remain competitive in the market.

Q: How does price strategy affect Petro 4 fuel sales?

A: Price strategy refers to the pricing policy adopted by a company to attract and retain customers. In the context of Petro 4, competitive pricing is essential to determine the attractiveness of products in the increasingly stringent market. PT Petro Andalan Nusantara must adopt a pricing strategy that balances profitability with consumer affordability to remain competitive.

Q: What is the importance of distribution channels in increasing Petro 4 fuel sales?

A: Distribution channels refer to the network of intermediaries that facilitate the flow of products from the manufacturer to the consumer. In the case of Petro 4, the availability of products in various locations can affect the comfort of consumers in accessing fuel. PT Petro Andalan Nusantara must ensure that its distribution channels are efficient and effective to meet consumer needs.

Q: How does promotion affect Petro 4 fuel sales?

A: Promotions refer to the activities undertaken by a company to create awareness about its products and increase purchase interest. In the context of Petro 4, effective promotion can help create awareness about products and increase purchase interest. PT Petro Andalan Nusantara must adopt a promotion strategy that targets the right audience and creates a positive brand image.

Q: What is the significance of government policy in creating a conducive environment for Petro 4 fuel sales?

A: Government policies, especially regarding the mandatory mixing of vegetable fuels (biodiesel) into diesel oil, create opportunities for PT Petro Andalan Nusantara to adapt and increase the competitiveness of its products. By implementing this policy, companies can not only meet existing regulations but can also increase consumer confidence in products that are more environmentally friendly.

Q: What are the implications of this study for PT Petro Andalan Nusantara?

A: This study shows that to increase the volume of Petro 4 fuel sales, PT Petro Andalan Nusantara needs to focus on strengthening the marketing mix which includes product quality, price strategy, efficient distribution, and attractive promotion. In addition, support from government policy is also very vital to create a conducive environment for sales growth. Implementation of the right strategy based on this analysis is expected to assist companies in overcoming decreased sales and improving the market position of Petro 4 products going forward.

Q: What are the limitations of this study?

A: This study has several limitations, including the use of a quantitative approach, the reliance on secondary data, and the focus on a single company. Future studies can build on this research by using a mixed-methods approach, collecting primary data, and examining the impact of marketing mix and government policy on multiple companies.

Q: What are the future research directions for this study?

A: Future research can explore the impact of marketing mix and government policy on other companies in the fuel industry, examine the role of other factors such as consumer behavior and market trends, and investigate the effectiveness of different marketing mix strategies in different contexts.