Indonesia has a clear direction towards electricity providing activities between Primary Energy, Generation, Transmission and Distribution Sectors as stated in the General Plan for Electricity Provision/Rencana Umum Penyediaan Tenaga Listrik (RUPTL). This guideline contains annual information of Energy Generated with the amount and its sources, information of Energy Transmitted between the length of transmission as well as amount of new installations, information of Energy Distributed between the amount of Electricity Consumed, its growth rate, as well as all development plans between all sectors. This plan contains this country's vision towards development of Renewable Based on Electricity Provision, as well as 35.000 MW Electricity Provision Program. 

In 2020, Indonesian Electricity Sector already produced 51.568 MW spread across Indonesia archipelago. The development of Energy Generation to meet 35.000 MW Energy project, already met 30,29% of progress as the project has succeeded to build and operate a total of 10.600 MW of power generation. As we can see, there’s a huge gap appearing between completion and target while the project’s deadline is approaching. Electricity Infrastructure development is going to be pushed and it creates a demand for Reliable Human Resource to perform Engineering Consultancy Services.

PT Prima Layanan Nasional Enjiniring (PLN Enjiniring) is an Engineering Consulting Company, part of Perusahaan Listrik Negara (PLN) Group and established in 2002. Since our conception, we aimed to help PLN Group and Electricity Ecosystem to develop towards getting accessible to others. We helped PLN in providing engineering insights towards planning, assembling study, providing designs and calculations as well as overseeing development progress. As of 2020, PLN Enjiniring is recognized as a single Engineering Consultancy entity in PLN Group after PLN’s in-house engineering consultant, Pusat Enjiniring Ketenagalistrikan (Pusenlis) was dissolved.

As.a Consultancy Company, PLN Enjiniring provide expertises in services in Primary Energy Sector, Power Generation Sector, Transmission & Substation Sector, Distribution Sector in serving Planning Process Products such as Feasibility Studies, Engineering Designs, Cost Estimate, Construction Process Supervising in Site Supervision Service & Design Supervision Service, as well as Operational & Maintenance Services in Reconductoring Studies, Uprating Studies Due Diligence, and Operational Cost Calculations. PLN Enjiniring also provides services in other sectors such as Property Consulting Study, Green Industrial Cluster Engineering Service, Market Intelligence Study and Asset Management Services. 

PLN Enjiniring’s net income had grown significantly from 2016 to 2018 from Rp 453.932 Million to Rp 1.117.269 Million where it reached company’s all time high revenue however followed by declining trend in 2019 to catastrophe level in 2020 where PLN Enjiniring earned Rp 625.344 Million as its business process was affected by pandemic and recovered a step a year later with Rp 736.732 Million. 

Another Key Outlook is PLN Enjiniring’s Operating Expenses consisted of Salary and Welfare Benefits for Day to Day Operations including Employee Income Tax Allowances. we can see there was some slight increase before 2020. In 2020, PLN Enjiniring’s Operating Expenses hiked significantly into Rp 190.713 Million, promptly in response to Covid-19 Pandemic monetary policy for employees. In 2021, PLN Enjiniring’s Operating Expense lowered significantly into Rp 170.916 Million.

Above is the graph of PLN Enjiniring Comprehensive Income Year of Year from 2016 to 2021. Reflective to Company’s performance of All-Time High with income of Rp 162.575 Million and lowest performance with income of Rp 16.764 Million. As planned by the Annual Shareholder Meeting, PLN Enjiniring is projected to earn Rp 1.200 Billion, a 202% increase from last year.

Since its establishment, along with the number of Engineering Manpower it hired as employees, PLN Enjiniring realized that it cannot maintain sustainability just by offering Engineering Consultancy Services. In 2021, PLN Enjiniring accumulated its cost of revenue to Rp 500,492 Billion for annual revenue on total new Engineering Consultancy Service Revenue of Rp 596,063 Billion. With such tight margins, PLN Enjiniring has initiatives to maintain sustainability by having other sources of revenue such as the CNG Gas Compression Plant in Bangkanai, Central Kalimantan. 

Similar to other consultancy entities, PLN Enjiniring will begin to process requests for quotations after understanding the consultancy services/products scope of work into a quotation or comprehensive proposal including Price Quotation, Project Timeline and Project Methodology. This process applies to every entity that inquires about us, and adaptable to user’s entity procurement policies. Within PT PLN (Persero) and its business units, PLN Enjiniring is deemed to be appointed directly, and PLN Enjiniring is also able to enter an open bidding procurement system, such as Government Ministries’ LPSE. PLN Enjiniring will also adjust to user’s requirements on agreement concepts whether it comes as contract or work orders.

PLN Enjiniring mainly serves PT PLN (Persero) Business Units across Indonesia as customers, as well as its subsidiaries with some external entity projects. In Contrast, the amount of Projects contracted between PLN Enjiniring to external entities are outsized next to PLN Group, as PLN Enjiniring had never earned 20 clients annually over the past 5 years. The contrasts between two sources of engineering project contracts could indicate PLN Enjiniring’s level of Brand Awareness to outside entities.

Regarding its awareness, PLN Enjiniring has not deployed adequate Digital Marketing tools to increase its presence online. Digital marketing refers to the use of digital technologies and channels to promote products or services to potential customers [1]. It scopes around utilization of online tools, such as social media, email, search engines, and websites, to reach and engage with audiences [2].

Digital Marketing utilizations bring significant advantages in reaching enormous audiences. According to research conducted by We Are Social and Hootsuite, approximately 212,9 million of internet users in Indonesia at the start of 2023, a total of 353,8 million cellular mobile connections were active in Indonesia in early 2023, with such figure equivalent to 128% of total population [3]. This trend draws attention to the importance of digital marketing for businesses that aim to capture a mass audience. In addition, digital marketing allows businesses to target specific audiences, increasing the effectiveness of marketing campaigns. By utilizing analytics tools, marketers and their employers can track the performance of campaigns in instant, make adjustments, and optimize campaigns for better outcomes. This approach benefited businesses in saving cost and time, as digital marketing is typically more cost-effective than traditional marketing methods [2].

Digital Marketing also creates value building brand awareness and loyalty. Business can establish perceptions to the desired-level of experts of each of respective  industry, by creating engaging and informative contents as well as interacting with customers with Social Media, responding to inquiry requests and feedback as well as creating a positive brand image [1].

PLN Enjiniring desires to be known as Leading Engineering Consultancy Company in South East Asia, as well as standing out for customers so it is important to dig the market deeper. Our goal is to build awareness for companies that have never partnered before so they would be assured of PLN Enjiniring Products and Results they would receive from hiring us. 

By conducting the early analysis, it has been determined that PLN Enjiniring barely forms partnerships with external entities based on the number of contracts. While PLN as a parent company doesn’t necessarily restrict PLN Enjiniring, there is an opportunity yet to be seized in external markets.

The problem that needs to be resolved in this research is how to propose marketing strategy to increase brand awareness, company revenue and defining proper strategy framework that PLN Enjiniring could offer to their customers by identifying customer preferences and resources as a convincing tool for customers to use our services.

The research employs several tools to contextualize a business issue. The Rich Picture tool visualizes the intricate relationships within the topic. The Business Environment Analysis assesses the business's nature and its environments' link to the issue. Finally, Stakeholder Mapping evaluates stakeholder power and interest.

The Rich Picture illustrates PLN Enjiniring's role in the Electricity Business Process. This entity offers extensive services, ranging from aiding in energy potential development to providing Power Quality Solutions to Office Segments, effectively servicing both PLN Group Entities and External Entities.

The Business Environment Analysis focuses on the decree's impact on PLN Enjiniring. This company's objectives align with the potential opportunities the decree presents, with the added benefit of direct appointment for projects by both private companies and the PLN Group. PLN Enjiniring has moderate technological capabilities, including DigSILENT & ArcGIS software, with a workforce of 283 that must be monitored in light of the decree.

Stakeholder Mapping identifies the Government, through the Energy & Mineral Resources Ministry and RUPTL, as the primary guideline setter. The Players are all entities involved in the business process and priority customers who stand to gain immediate benefits. Subjects with high interest but low power include PLN and its Portfolio Management Division, responsible for overseeing operations. Lastly, The Crowds, or Residential Electricity Purchasers, only concern themselves with reliable electricity consumption.

The study examines core marketing strategies including Segmentation, Targeting & Positioning (STP) and the Marketing Mix. STP is a marketing tool that helps firms target potential customers, design suitable marketing mixes, and position their products or services for a competitive edge [4]. The Marketing Mix, on the other hand, comprises controllable tactics — product, price, promotion, and place — to meet customer needs [4].

This study also delves into the General Environment Analysis or PESTEL Analysis (Political, Economic, Sociocultural, Technological, Environmental, and Legal factors), a tool for assessing external influences on a company's decisions [4]. PESTEL analysis aids in pre-empting future situations and understanding the industry environment.

External Analysis, translated from General Environment Analysis, identifies potential opportunities and threats in the Macro Environment, Industry, or Competition [5]. It includes Political/Legal, Economic, Demographic, Sociocultural, Technology, Global, and Physical Analyses, each giving a unique perspective on external influences impacting the company.

Industry analysis evaluates the competitive landscape and attractiveness of an industry, shedding light on potential opportunities and threats. Porter's Five Forces framework assesses competition via the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and rivalry among firms.

Competitor analysis assesses four factors: objectives, strategy, assumptions, and capabilities. Understanding these elements helps shape responses to competitors' offerings. For PLN Enjiniring, the focus is on serving PLN by providing engineering consultancy services and engineering studies, competing in Energy, Electricity, Engineering Services and Consultancy Services sectors. The firm's relationship with PLN and its status as a state-owned enterprise offer unique advantages, although it faces challenges in resourcing efficiencies.

Resource-Based View (RBV) analysis considers the company's tangible and intangible resources. For PLN Enjiniring, tangible resources include company equity, human resources, moderate technological capability, and online presence. Intangible resources include being part of state-owned enterprises, sharing brand equity with PLN, and deep knowledge of engineering expertise.

VRIO analysis looks at how a firm’s resources, if they are valuable, rare, inimitable, and organized, contribute to a sustainable competitive advantage.

Value Chain Analysis studies primary and support activities for their potential to create value. Primary activities involve product sourcing, creation, delivery, sales, and post-sale services, while support activities include firm infrastructure, HRM, technology development, and procurement.

Finally, the SWOT analysis allows businesses to identify strengths, weaknesses, opportunities, and threats, and TOWS analysis allows them to find correlations to refine their strategy, marketing mix, and segmentation, targeting and positioning frameworks.

The conceptual framework of this research aims to address the problem statement and analyze internal and external factors. This process helps identify strengths, weaknesses, opportunities, and threats, with the goal of formulating a marketing strategy to enhance revenue. The framework views the process from a bird's-eye perspective, beginning with external conditions and market sizing, progressing to customer preferences and future opportunities, and finally assessing the firm's internal capabilities.

This chapter outlines the research methodology, detailing the design, data collection methods, sample selection, and analysis techniques employed for ensuring reliable and valid findings. The research design serves as the foundation for the study's execution, shaping how data is collected to address marketing research challenges.

The exploratory research design is used to gain insights about marketing trends through both qualitative and quantitative studies. Qualitative methods focus on depth of understanding, applied internally between marketing and business development divisions. Quantitative methods collect primary data to identify patterns, executed through a survey method to understand market expectations and preferences about product development and business operations. Secondary data is gathered from scholarly sources, RUPTL data, and relevant regulations.

Qualitative data, drawn from Company’s Long Term Planning to obtain directions. Quantitative research involves a survey conducted from 2018 to 2022 on Industry Expectations for PLN Enjiniring Consultancy Services Users. The survey employs online questionnaires with covering letters. The sample size, calculated using Slovin’s formula, involves a margin of error of 10%. The quantitative analysis focuses on the total client base of PLN Enjiniring from PLN Group and external entities.

3. Customer Analysis

This study collected data from 58 respondents on their perceptions and experiences with engineering consulting firms as shown in Figure 1. The respondents were segmented based on various factors including enterprise ownership, size, age, and experience with consulting firms as explained in Figure 2.

Figure 1 – Respondents in Using a Management Consulting Firms

Figure 2 – Segmentation Analysis Process

Our findings in Figure 3 revealed that PLN Group and large enterprises were the highest users of consulting services with detailed insights revealed in Figure 4, Figure 5 and Figure 6 while micro enterprises and non-profit entities had a low usage rate as shown in Figure 7 with detailed insights revealed in Figure 8, Figure 9 and Figure 10. We noted that enterprises older than 5 years had a high consulting user rate, confirming their reliance on engineering services as explained in Figure 11 with detailed insights revealed in Figure 12, Figure 13 and Figure 14.

Figure 3 – Segmentation based on Enterprise Ownership

Figure 4 – Consulting Firm’s based on Enterprise Ownership

Figure 5 – Annual Budget Allocation Comparison based on Ownership

Figure 6 – Annual Quantity Allocation Comparison based on Ownership

Figure 7 – Segmentation based on Enterprise Size

Figure 8 – Consulting Firm’s User rate based on Enterprise Size

Figure 9 – Annual Enterprises Budget Allocation based on size

Figure 10 – Annual Enterprises Quantity Allocation based on Size

Figure 11 – Segmentation based on Company’s age

Figure 12 – Consulting firms’ user rate based on company’s age

Figure 13 – Annual Enterprises Budget Allocation based on age

Figure 14 – Annual Enterprises Quantity Allocation based on age

The collected data also provided insight into customer preferences for different types of consulting services. The top five preferred services were Engineering Design, Feasibility Study, Engineering Cost Estimate, Site Investigation, and Design Review as shown in Figure 15. Additionally, the factors that customers considered as revealed in Figure 16 when choosing a consulting firm were academic and practical experience, national exposure, industry knowledge, and the reputation of handling big clients.

Figure 15 – Respondents’ Consulting Service Preference

Figure 16 – Respondents’ Preference Criteria

We also conducted in-depth interviews with selected respondents, mainly from large enterprises, to gain deeper insight into their answers as resulted in Figure 17. This supplemented our quantitative data and helped us understand the buying behavior, budget allocation, and information sourcing of these firms.

Figure 17 – Reason to hire Engineering Consultancy Firm

Overall, our data suggests a high potential market for consulting services, particularly among large and established enterprises. This insight can help consulting firms tailor their offerings and marketing strategies to this audience.

4.1 General Environment Analysis

Examining key environmental factors, we find:

• Political/Legal Aspects: The Indonesian Electricity Business Plan encourages renewable energy (51.6% of new developments), aiming for a 23% energy mix by 2025. The Environmental, Social and Government (ESG) framework influences the industry. PLN’s Transformation Program launched in 2020 focuses on customer-oriented, innovative, and green services.

   

• Economic Analysis: With a GDP growth of 5.31% in 2022 and a growth of 6.61% in the electricity and gas sector, Indonesia's economy is on the rise. The IDR to USD exchange rate impacts the electricity industry. Inflation influences the cost of electricity. PLN's focuses are shifting from Capital Expense to demand-driven infrastructure investment.

   

• Demographic Analysis: In 2020, almost all households (99.2%) in Indonesia had electricity access.

   

• Sociocultural Analysis: Post-pandemic behaviours encourage remote work and platform use. The ESG aspect influences investment in mega-projects.

   

• Technology Analysis: Industry 4.0, with technologies like IoT, AI, and blockchain, promises efficiency, flexibility, and cost savings in the energy sector.

   

• Global Analysis: The ESG aspect is becoming increasingly relevant globally. Climate change urges a transition to low-carbon energy production.

   

• Physical Analysis: PLN Enjiniring has moved from hard copy reports to digital formats, prioritizing data security.

4.2 Industry Analysis/Porter 5 Forces

In Figure 18, we determined Porter’s Five Forces analysis in order to gain a better landscape of this industry.

Figure 18 – Porter’s Five Forces Analysis

• Threat of New Entrants: High, due to open industry and tight competition.
• Bargaining Power of Suppliers: Medium, as international consultants are expensive and local suppliers scarce.
• Bargaining Power of Buyers: High, due to standardized price lists and the ability to procure from a range of providers.
• Threat of Substitutes: Low, as PLN-compliant engineering services are a staple.
• Rivalry among Competitors: High, due to the numerous competing entities.

4.3 Competitor Analysis

In Figure 19, we determined Competitor analysis in order to map direct & indirect competiton to PLN Enjiniring’s Business.

Figure 19 – PLN Enjiniring Competitors

PLN Enjiniring aims to serve PLN and private entities by providing engineering consultancy services. It competes in energy, electricity, engineering, and consultancy services. PLN Enjiniring’s main competitors are PT Rekadaya Elektrika Consultant, PT PLN (Persero) Pusmanpro, and several other entities. To compete, PLN Enjiniring maintains accessibility for PLN Group and is expanding into new competencies. Despite resourcing challenges, PLN Enjiniring's core strengths are its innate Energy & Electricity knowledge, personnel, and strong affiliations.

The Resource-Based View (RBV) Analysis for PLN Enjiniring reveals the company's tangible and intangible assets. The tangible resources include a Company Equity of Rp 757 Billion and 283 employees, 80% of whom are engineers. Their technological and online resources are moderately advanced. The intangible resources incorporate the company's status as a State-Owned Enterprise, its alignment with prominent industries in Indonesia, its core values, and its vision and mission. The company also benefits from its affiliation with PLN, which gives it direct access to projects that add value to the company.

According to the VRIO Analysis, some of PLN Enjiniring's resources yield a competitive advantage while others merely provide competitive parity. The company's equity provides a sustainable competitive advantage, while their human resources, technological capacity, and online presence merely meet the standard set by competitors. The intangible resources, such as the company's core values, vision, mission, PLN affiliation, and status as a State-Owned Enterprise, all provide a sustainable competitive advantage. However, the depth of engineering knowledge hasn't yet yielded its full potential due to neglected knowledge sharing activities.

In the Value Chain Analysis, the key activities of PLN Enjiniring are evaluated. These include Inbound Logistics/Input Activities, Operations, Outbound Logistics/Output Activities, Marketing, Sales & Promotions, and Service Activities, each offering unique challenges and opportunities for the company. The support activities, including Firm Infrastructure, Human Resource Management, Technology Development, and Procurement, were also analyzed.

PLN Enjiniring's core activities involve managing the supply and grid system, implementing consultancy services to aid clients, providing rigorous project management, and maintaining efficient communication. The company faces challenges due to language barriers, lack of visibility with private entities, and customer churn. On the support side, the company manages its basic operations well but struggles with higher targets, requires better knowledge management and employee training, and has room for improvement in technology development and procurement processes.

With these insights from internal and external analysis, the company can establish an accurate SWOT matrix and proposition for moving forward.

5. SWOT Matrix, TOWS Analysis

5.1. SWOT Analysis

Figure 20 – SWOT Matrix of PLN Enjiniring

As explained in Figure 20, PLN Enjiniring's strengths include exclusive engineering expertise within the PLN Group, experienced engineers, strong capital equity, and an extensive support network. However, its weaknesses encompass inadequate manpower and quality to meet project demand, unorganized HR development activities, uncertified engineers, neglected knowledge transfers and innovation management, and weak brand awareness for external and overseas clients.

Opportunities lie in continued PLN Group support, renewable energy regulations, 35000 MW Mega Project progress, and evolving engineering technology. Yet, threats arise from competitors offering cheaper services, customer churn, and overseas competitors with legal representation in Indonesia.

5.2. TOWS Analysis

Table 1 – TOWS Analysis of PLN Enjiniring

As implied in Table 1, The TOWS analysis highlights how strengths and weaknesses can interact with opportunities and threats. PLN Enjiniring's strong capital equity and support network can be leveraged to exploit opportunities in renewable energy consulting services and the completion of the 35000 MW Mega Project. However, unorganized HR development, lack of innovation management, and weak brand awareness could hinder these opportunities.

On the other hand, the association with PLN provides a shield against threats as it ensures easier access for industry entities and promotes a kinship sentiment encouraging usage of PLN Enjiniring's services. Nevertheless, the same weaknesses might result in a competitive disadvantage against agile, reputable overseas competitors and risk losing opportunities to perform higher value projects, thereby leading to customer churn.

6. Solution & Implementation Plan

While segmentation, targeting, and positioning remain unchanged, the author emphasizes prioritizing specific target markets in the marketing mix as explained in Table 2.

Table 2 – PLN Enjiniring new Segmentation, Targeting & Positioning

And to comply with Customer's Analysis and new Segmentation, Targeting & Positioning, here is the Marketing Mix Proposal as explained in Figure 21.

Figure 21 – PLN Enjiniring New & Proposed Marketing Mix

• Product: PLN Enjiniring should showcase top engineers via a platform for clients and prospectives to directly experience consulting, similar to patient-doctor interactions. This could drive trust, expertise recognition and revenue.

• Place: Services should be promoted throughout Indonesia, bolstering market presence. As engineering services are increasingly sourced from the Internet, optimizing Search Engine Optimization (SEO) can enhance visibility and trust.

• Promotion: Focusing on the expertise of engineers on the website can enhance reputation and trust. Partnerships with top engineers can also boost company profile and consultancy experience.

• Price: Services should continue to follow Indonesian billing standards of INKINDO, adjusting annually.

Complying with the new Marketing mix and adding insight into those, here is the Driver for Uniqueness [6] for PLN Enjiniring to adopt.

• Economies of Scale: Cataloging engineers according to expertise could increase consulting volume and alleviate consultancy workload.

• Channel Engagement: Traditional promotion methods should be retained but amplified by a website focus on company portfolio and engineer capabilities. A consulting platform, like HaloDoc, could enhance consulting experiences.

• Interrelationship: A beneficial exchange between PLN Enjiniring and partnered engineers is expected from shared consulting activities.

• Integration: A consulting platform integrated with the company's website could showcase both company and engineers' competencies.

Digital Marketing allows precise audience targeting and campaign performance tracking. PLN Enjiniring's current digital presence includes a website and social media accounts. To capitalize on this, SEO and Hard Ads could be used to attract and direct customers to the website. The proposed online consultancy system could provide engineering solutions, recommendations and enable easy follow-ups, resulting in higher customer engagement.

For better marketing coordination, social media platform management should shift from Corporate Secretary Division to Marketing Division. Key strategies include SEO, online consultancy, engineer association engagement, customer satisfaction focus, attractive marketing programs for various segments, and timely delivery.

A detailed implementation plan will provide guidance for these tactics that is elaborated in Figure 22.

Figure 22 – Implementation Plan Time Table for PLN Enjiniring

PLN Enjiniring, despite its significant achievements in the electricity industry and reaching a record revenue of Rp 1.8 Trillion, hasn't effectively targeted other segments like State-Owned, Private, and Foreign & Multinational Companies, which account for 38% of its portfolio over the past 5 years. Referrals and consultants' expertise hold substantial value in company perception.

External and Internal Analyses revealed varying resource quality, with human resources being a prime asset, albeit only achieving competitive parity. Online presence, crucial for reaching international and new clients, also needs improvement. Opportunities lie in the completion of the National Electricity Business Plan and the 35000 MW Mega Project, along with new renewable energy competencies. Challenges include cheaper competitors.

Digital marketing strategy offers untapped potential. By enhancing its social media presence, optimizing SEO, implementing an Online Consultancy Platform, and making supporting internal decisions, PLN Enjiniring can further its market impact.

This study collected data from 58 respondents on their perceptions and experiences with engineering consulting firms. The respondents were segmented based on various factors including enterprise ownership, size, age, and experience with consulting firms.

Acknowledgement

The authors would like to thank the Bandung Institute of Technology & PT PLN Enjiniring for providing the support for this study.

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