Monica Anggi JR-Proposed Digital Marketing For Indonesian Political Consulting

PROPOSED DIGITAL MARKETING STRATEGY
FOR INDONESIAN POLITICAL CONSULTING:
STUDY CASE OF LINGKARAN SURVEI INDONESIA
FINAL PROJECT
By:
MONICA ANGGI PUSPITA
NIM: 29316385
Master of Business Administration Program
School of Business and Management
Institut Teknologi Bandung
2018
USULAN STRATEGI PEMASARAN DIGITAL
UNTUK KONSULTAN POLITIK INDONESIA:
STUDI KASUS LINGKARAN SURVEI INDONESIA
NIM: 29316385
Date of Final Examination: ……………...
Date of Graduation Ceremony: ………….
Institut Teknologi Bandung, 2018
Final Project Counselor: Dr. Jacky Mussry
ABSTRAKSI
Lingkaran Survei Indonesia (LSI Denny JA) berdiri sejak tahun 2005 dan menjadi
konsultan politik profesional pertama di Indonesia. Perusahaan ini berhasil
memenangkan pemilihan presiden tiga kali berturut-turut sejalan dengan jejak sejarah
reformasi demokrasi Indonesia. Selain itu, LSI juga telah memenangkan 31 gubernur
dari total 34 provinsi di Indonesia.
Sebagai konsultan politik ternama dan memiliki reputasi bagus yang bisa diukur
dari hampir semua indikator, LSI Denny JA pun tidak imun dari masalah bisnis. Jika
diukur dari presentase purchase action ratio (PAR) yang menggunakan jasa LSI
Denny JA, jumlahnya tidak mengalami pertumbuhan, bahkan pada semester ini
mengalami penurunan yang signifikan.
Jika ditelaah dari beberapa analisis lapangan dan studi literatur secara garis
besar, hal ini terjadi salah satunya karena perkembangan era internet yang begitu
i
cepat. Oleh karena itu, riset studi ini akan mengambil pokok bahasan utama dengan
merujuk pada teori Marketing 4.0: Moving from Traditional to Digital (Kotler dan
Kartajaya, 2016).
Persaingan antar satu konsultan dengan yang lain pun menjadi lebih sengit.
Industri telah memasuki red ocean dan persaingan pun mengarah kepada strategi
kepemimpinan harga.
Selain rujukan dari pokok utama, pertanyaan besar ini juga akan dijawab dengan
menggunakan dua pendekatan, yakni analisis internal dan analisis eksternal. Hal ini
perlu dilakukan untuk melihat secara lebih detail apakah ada faktor lain yang
mempengaruhi, terutama karena adanya perubahan sistem pemilihan umum yang kini
dilakukan serentak.
Situasi ini juga terjadi di semua lini. Karena komunikasi berubah, definisi
pemasaran juga berubah. Untuk perusahaan modern, pendekatan digital adalah fase
wajib untuk terus berbisnis. Konsultasi politik pun juga harus cepat beradaptasi dalam
melakukan perubahan agar dapat mempertahankan sustainable competitive advantage
dan tumbuh menjadi perusahaan yang tangkas.
Kata Kunci: digital marketing, LSI Denny JA, political consulting, political
marketing,
ii
NIM: 29316385
Date of Final Examination: ……………...
Date of Graduation Ceremony: ………….
Institut Teknologi Bandung, 2018
Final Project Counselor: Dr. Jacky Mussry
ABSTRACT
Lingkaran Survei Indonesia (LSI Denny JA) was established in 2005 and became
the first professional political consultant in Indonesia. The company succeeded in
winning presidential elections three times in a row in line with the historical track of
Indonesia's democratic reforms. In addition, LSI has also won 31 governors from a
total of 34 provinces in Indonesia.
As a prominent political consultant and has a good reputation that can be measured
using all indicators, LSI Denny JA is not immune from business problems. If measured
from the percentage purchase action ratio (PAR) that uses the services of LSI Denny
JA, the number does not grow, even in this semester has decreased significantly.
When examined from some analysis and spatial studies, one of many causes is the
rapid development of the Internet. Therefore, this study will use the main reference
iii
from the theory of Marketing 4.0: Moving from Traditional to Digital (Kotler and
Kartajaya, 2016).
Competition between one consultant and another also has become fiercer. The
industry has incorporated into the red ocean environment and competing more in price
leadership strategies.
In addition to the main point of reference, the big question will also be answered
using two approaches, which are internal analysis and external analysis. These
approaches need to be done to find out in more detail whether there are other factors
that affect the current situation, especially because the political system changes into
concurrent elections.
This situation also occurs on various lines. Since communication changes, the
definition of marketing also alters. For a modern company, the digital approach is a
mandatory phase to continue doing business. Political consulting must also be in
accordance with the desire to maintain the sustainable competitive advantage and grow
to be an agile company.
Keywords: digital marketing, LSI Denny JA, political consulting, political

marketing
iv
NIM: 29316385
Strategic Marketing - 1
Approving:
Counselor
Dr. Jacky Mussry
NIP: ………………………………..
v
ACKNOWLEDGMENT
Alhamdulillahirabbil’alamin. I will always present my first gratitude to the God

Almighty, praises belong to Him from the very beginning into the very end.
This final project will not be accomplished without my fiancé’s endless

compassion and support, JR. He is the one who highly contributes my study for which
I always profoundly gratitude. Along with my mother and brothers, their prayer and
encouragement avail me to always seize higher achievements.
I also would like to give a very high appreciation to my final project counselor,
Dr. Jacky Mussry who has granted his time for consultation and construction advices
during the accomplishment for this final project.
In this opportunity, I would thank MarkPlus, Inc., Mr. Hermawan Kartajaya

himself, and SBM ITB for their genuine friendship, support, and team works for this
remarkable 1.5 years. Last but not least, Denny J.A. as the founder and the director of
Lingkaran Survei Indonesia—for his kind and favorable support to comply the
resources needed for this research.
Critiques and suggestions for the perfection of this research are highly sought and
it is hoped that the research will be beneficial for those who need it.
Jakarta, July 2018
Monica Anggi Puspita
vi
TABLE OF CONTENTS
ABSTRAKSI ……………………………………………………………....... i
ABSTRACT ……………………………………………………………........ iii
VALIDATION PAGE ………………………………………………………. v
ACKNOWLEDGEMENT ………………………………………………...... vi
TABLE OF CONTENTS ………………………………………………........ vii
LIST OF FIGURES …………………………………………………………. ix
LIST OF TABLES ………………………………………………………...... x
LIST OF APPENDICES ……………………………………………………. xi
CHAPTER 1: INTRODUCTION
1.1. Background …………………………………………………………...... 1
1.2. Company Profile ……………………………………………………...... 4
1.2.1. Political Consulting …………………………………………........ 5
1.2.2. Quick Count …………………………………………………....... 6
1.2.3. Public Opinion Maker ………………………………………........ 7
1.3. Business Performance ………………………………………………...... 8
1.4. Problem Statement …………………………………………………....... 9
1.5. Research Questions …………………………………………………...... 12
1.6. Research Objectives …………………………………………………..... 13
1.7. Limitations of Research ……………………………………………....... 14
1.8. Conceptual Framework ……………………………………………….... 14
CHAPTER 2: BUSINESS ISSUE EXPLORATION
2.1. General Business Strategy …………………………………………........ 17
2.1.1. A Convergence between Practical Politics and Science ………...... 17
2.1.2. Image Building ………………………………………………...... 18
2.1.3. Battle Strategy ………………………………………………........ 18
2.1.4. Identity Politics ………………………………………………...... 19
2.2. Internal Analysis ……………………………………………………...... 19
2.2.1. Digital Review ………………………………………………....... 20
2.2.2. Segmenting, Targeting, and Positioning (STP) Analysis ……...... 20
2.2.3. Marketing-mix ………………………………………………....... 22
vii
2.3. External Analysis ……………………………………………………..... 24
2.3.1. PESTEL Analysis ……………………………………………...... 25
2.3.2. Five Forces Model ……………………………………………. 32
2.4. The Root of Problem Analysis ……………………………………… 37
CHAPTER 3: BUSINESS SOLUTION
3.1. Methodology ………………………………………………………… 39
3.2. Client Survey Analysis ……………………………………………… 40
3.2.1. Factors of Choosing LSI Denny JA ………………………….. 41
3.2.2. Marketing-mix ………………………………………………... 42
3.2.3. Pricing ………………………………………………………... 43
3.2.4. Promotion …………………………………………………….. 44
3.3. Competitor Analysis ………………………………………………… 45
3.3.1. Existing Competitors …………………………………………. 45
3.3.2. New Competitors ……………………………………………... 47
3.4. Business Solution ……………………………………………………. 48
3.5. Business Initiatives ………………………………………………….. 52
3.5.1. Diversified Market and Products ……………………………... 52
3.5.2. Tech Savvy Professional ……………………………………... 53
3.5.3. Digital Marketing …………………………………………….. 54
CHAPTER 4: CONCLUSION AND IMPLEMENTATION PLAN
4.1. Conclusion …………………………………………………………... 55
4.2. Implementation Plan ………………………………………………… 56
4.2.1. The New Products ……………………………………….…… 57
4.2.2. The Digital Marketing ……………………...………………… 58
4.2.3. The Target ……………….………………...………………… 59
REFERENCES …………………………………………………………... 62
APPENDICES …………………………………………………………… 65
viii
LIST OF FIGURES
Figure 1. LSI Denny JA’s PAR in 2018 …………………………………. 12

Figure 2. The Conceptual Framework …………………………………… 15
Figure 3. Indonesia GDP Growth Rate …………………………………... 28
Figure 4. IDR Exchange Rate ……………………………………………. 29
Figure 5. Indonesian Business Confidence Rate ………………………… 29
Figure 6. Profile of Respondents ………………………………………… 40
Figure 7. Reasons of Purchasing ………………………………………… 41
Figure 8. Conventional Product Satisfaction …………………………….. 42
Figure 9. Digital Product Satisfaction …………………………………… 43
Figure 10. Pricing of LSI Denny JA’s Services …………………………. 43
Figure 11. Promotion Factors ……………………………………………. 44
Figure 12. Reputation and Website ……………………………………… 44
Figure 13. 4C Diamond Model …………………………………………... 48
Figure 14. Target of Implementation Plan ……………………………….. 59
ix
LIST OF TABLES
Table 1. The Aggregation of LSI Denny JA Clients …………………….. 8

Table 2. LSI Denny JA’s Purchase Action Ratio ………………………... 10
Table 3. Segmentation of LSI Denny JA ………………………………… 21
Table 4. Number of Caught-in-the-Act Operations of KPK ……………... 32
Table 5. Registered Survey Institutions in General Election Commissions 36
Table 6. Internal and External Analysis of LSI Denny JA ………………. 37
Table 7. The Existing Competitors Comparison ………………………… 46
Table 8. The New Competitors’ Business Type …………………………. 47
Table 9. Analysis of 4C Diamond ……………………………………….. 49
Table 10. SWOT Analysis ……………………………………………….. 50
Table 11. The Procedure and Time Schedule of Implementation Plan ….. 60
x
LIST OF APPENDICES
Appendix A1. LSI Denny JA’s Company Logo …………………………. 66

Appendix A2. Organizational Structure of LSI Denny JA ………………. 66
Appendix A3. The Recapitulation of Provinces, Districts, and Cities
Performed Elections from 2005 – 2013 ………………………………….. 67
Appendix A4. Schedule of 2015 Concurrent Elections ………………….. 67
Appendix A5. LSI Denny JA’s Potential Client Reach ………………….. 68
Appendix A6. LSI Denny JA’s Operational Cost (in million rupiah) …… 68
xi
CHAPTER 1
INTRODUCTION
1.1. Background
Politics was a speculative enterprise back then in the authoritarian era led by
Soeharto. But soon after the New Order system collapsed in 1998, Indonesia rapidly
changed to engage the democracy system. All the political elections should be
conducted directly on the principle of fair and free. But this upturn situation brought
a significant problem. There were ample political candidates who wanted to win
the elections, but they did not have any idea how to capture the vote. As Andreas
Ufen stated in Journal of Current Southeast Asian Affairs:
Indonesia has a presidential system with a bicameral parliament. The

First Chamber, the House of Representatives (DPR), has 560 members who
are selected in 77 multi-member constituencies with 3–10 seats. Whereas
literature on Indonesia’s political parties, parliament, decentralization and
human rights situation abounds, scholarly work on campaigning in
Indonesia is scarce. (2010: 12)
Afterwards, Lembaga Survei Indonesia emerged in September 17, 2003 as the

first pollster. Their initial intention was becoming a partner of the central
government to find resolutions of issues in the realm of democracy. This objective
was written in the notary deed. But again, this institution was created not to serve
the commercial area. Lembaga Survei Indonesia was built to be non-partisan and
non-profit.1 But then, Denny J.A. resigned from the institution and built the first
professional polling institution in 2005—called Lingkaran Survei Indonesia (LSI
Denny JA). This situation was reciprocal for the academicians, public opinion
makers, and pollsters who had been working voluntarily. It was LSI Denny that
acquainted political consultant service as the spearhead to win the elections.
LSI Denny JA commenced the proliferation of political consultants in

Indonesia. They handle the upstream to downstream activities concerning political
campaign; from conducting survey, voters mapping, image building, and quick
count. Competition between them are getting fiercer year by year, not many
1
2003: Lembaga Survei Indonesia’s Deed of Incorporation, H.M. Afdal Ghazali, S.H.
1
consultants survived from the situation. Big companies like Fox Indonesia and
Lembaga Riset Indonesia were out of business due lack of sustaining reps and work
standard.
For almost a decade, television has become the most effective medium to
introduce and ‘market’ the candidates. Amien Rais in his interview on 2007 said
that Jimmy Carter, the ex-president of United States told Amien that television is a
strong tool to prevail the elections (Danial, 2009:190).
The cost of politics marketing has been skyrocketing since then. Between
January and late March 2009 alone, Demokrat spent USD5.1 million on television
advertisements, followed by Golkar with USD4.8 million, and Gerindra with USD
4.4 million (Ufen, 2010: 30).
But the era of television has met the downfall when internet penetration began
to impact Indonesian politics sphere. As Trgyve Olson and Terry Nelson stated in
the journal The Internet’s Impact on Political Parties and Campaigns:
Thus, the vast amounts of information available on the web, the speed
at which this information moves, and the capacity of any individual to
communicate with broader audiences is truly “changing everything” in the
political universe. (Olson and Nelson, 2010: 50).
As for just in recent times, politicians who finally decided to join the
contestations now declare their participation in their social media, like what Hillary
Clinton did and it caused Twitter peaked out for certain times.2 Another sample to
show how big the impact of digital marketing happened during the second term of
Barrack Obama presidential rally. It is stated in many news articles that the effective
use of big data analytics by the Barack Obama campaign is cited by political
analysts as one of the major reasons for his victory over Mitt Romney, his
Republican challenger. The Obama campaign had a staff of 100 specifically to work
on data analytics.3
Also, the case of Trump's victory claimed by the Cambridge Analytica by using
Google, Snapchat, Twitter, Facebook and YouTube. A former employee explained
2
https://www.huffingtonpost.com/2015/04/13/hillary-clinton-announcement-on-social-
media_n_7057020.html
3
https://channels.theinnovationenterprise.com/articles/how-big-data-is-helping-to-shape-political-
campaigns
2
how it details the techniques used by the Trump campaign to micro-target US voters
with carefully tailored messages about the Republican nominee across digital
channels.4
The behavior changes of audience using internet, changes how politicians to

deal with them. Lucian Despoiu, a founder of Majoritas, a global political
technology that has helped 6 presidents, 8 prime ministers, and 20 parties said in
his Ted Talk in Bucharest, voters are digital native while politicians are digital
immigrants. If they do not understand how digital native interact, they will not be
elected.
Digital political marketing has its own advantages, which are lower costs and
offering two-way communication between the organization or in this case, political
candidates with the public. The advantages of this two-way communication result
all programs and activities related to the public will be easily conveyed because the
nature of the relationship is more personal. The company will easily reach the
public and vice versa. An advantage that is not offered by conventional media.
The most coherent example for how big the impact of digital power affects our
politics is 411 and 212 actions.5 The actions are actually commenced by
demonstrating, went online and sought more supporters, then went demonstrate
again. The result of these movements is Basuki Tjahya Purnama (a.k.a Ahok) put
in jail.
Digital era promises to provide abundant of information in lower cost than any
conventional media can give, it is potential to turn the entire marketing campaign
and business process upside down. Thereby, to run the political consultant business
in the future requires the ability to perform the integrated political marketing in both
conventional and digital sphere to sustain the competitive advantage, especially for
LSI Denny JA that has grown and sustained in 13 years.
4
https://www.theguardian.com/uk-news/2018/mar/23/leaked-cambridge-analyticas-blueprint-for-
trump-victory
5
The boisterous but peaceful rallies that occurred in Jakarta on 4 November and 2 December 2016
(commonly referred to as the ‘411’ and ‘212’ rallies respectively) were important phenomenon in
the Indonesian Islamic political scene.
3
1.2. Company Profile
LSI Denny JA was established in 2005 by Denny J.A., PhD. Prior to this
company, Denny J.A. had become director of the Lembaga Survei Indonesia. He
established LSI Denny JA to demonstrate that survey and consultant agencies can
live and benefit the business. In the interview with Tempo.co, he told the reason
why political consultant had attracted many culprits to run the business. Doing
business in surveys and political consultants do not know the word of “loss”
because the cost is given in the beginning. He labelled it “a very liquid” business
model and purported that his initial investment amounted IDR550 million was
returning with only one compilation survey addressing Ismeth Abdullah, who ran
for governor of the Riau Islands in 2005.6
In the interview I have with Denny J.A., he gave a disclaimer why the
company—LSI Denny JA becomes the pioneer of political consulting business in
Indonesia:
LSI Denny JA came at that time with a new concept, about the
importance of political marketing. In the era of freedom, various services
and products that come to the public with marketing. Not only business, not
just the business world, politics has come, it’s time to come to the public
through marketing; how to build an image building for a character to be
known, liked, and chosen, and also how to be a successful leader.7
As a survey institution, LSI Denny JA assists political parties and candidates in

mapping strengths and weaknesses. It has changed the political campaign in
Indonesia when they signed the first contract with Golkar party who used the results
of the surveys as the considerations in supporting candidates in the elections. This
is what Danial said in his book titled “Iklan Politik TV”, as the process of campaign
modernization. The role of political consultants has escalated until there were a
campaign organization shifting—from previously managed by inner circle shifted
to the externalities, as in this case called marketing expert.
As a political consultant, LSI Denny JA’s first client is Ismeth Abdullah, Riau
Islands Governor. It has succeeded in assisting Ismeth Abdullah's victory in the
6
Legitnya Bisnis Konsultan Pilkada, Tempo: https://nasional.tempo.co/read/420093/legitnya-
bisnis-konsultan-pilkada
7
Personal Interview with Denny J.A. in Jakarta, April 2018
4
Riau Province Election in 2005. After that, LSI assisted many local chief clients
and legislators. In 2018, it has succeeded to win 35 governors and 83
regents/mayors throughout Indonesia.
LSI Denny JA has proliferated its business strategy by doing expansion. It has
six subsidiaries to meet the high demand of political assistances, as follow:
a. Lingkaran Survei Indonesia, Ltd.

b. LSKP Research & Consulting, Ltd.
c. Citra Publik Indonesia, Ltd.
d. Citra Publik Advertising, Ltd.
e. Citra Komunikasi LSI, Ltd.
f. Konsultan Citra Indonesia, Ltd.
1.2.1. Political Consulting
Denny JA wanted to build an institution that not only conduct political surveys
but also served as a political consultant. Armed with experience assisting the
winning team of presidential elections for Susilo Bambang Yudhoyono in 2004,
Denny JA established Lingkaran Survei Indonesia (Brand: LSI Denny JA) with a
focus on conducting political surveys and becoming a political consultant for
political parties and candidates.
Before LSI Denny JA, there were indeed some people or institutions that helped
win the political party or the candidate. But they do not call themselves professional
political consultants. It is the first institution to call itself a professional political
consultant. In 2005, LSI Denny JA started work with a specialization on consultants
for politics and offered services not just to the advertisement and building the image
of candidates LSI offers all the types of work needed to win the candidates --- from
strategy preparation, mission vision, door-to-door campaigns, and media
campaigns to the preparation of witnesses during the election.8 After LSI, various
political consultancy agencies started to proliferate in Indonesia, such as Indo
Barometer, Fox Indonesia, Polmark Indonesia, Millennium Cipta Citra and so on.
The emergence of political consultants cannot be separated from political

changes in Indonesia. After 2004, Indonesia entered a new era where public
officials were directly elected by the people - from the president, members of the
8
2014: Menjadi Indonesia Tanpa Diskriminasi pg. 321, Denny J.A.
5
House of Representative (DPR, DPRD, and DPD), the mayors, the Regents to the
governors. It could be said that none of the political candidates who want to win the
elections do not employ survey and consultant services.
Yunarto as the Director of Charta Politika mentioned there are various services
offered by political consultant institutions, but generally, there are three types of
services; Mapping, Monitoring, and Mobilizing.9
Voter mapping is the form of research on voter behavior and how mapping
between them with competitors. Then monitoring is accompaniment and mobilizing
more to the execution for winning certain candidate. Examples of mobilizing are
door-to-door campaign and provide training to the witnesses who will be placed in
ballot boxes. Although the outline of the services of political consultants are in these
three domains, in fact many political consultants also receive orders for other
technical matters, such as making videos to print banners used for campaigning.
1.2.2. Quick Count
The territory of Indonesia is very wide and many geographical locations are
difficult to reach. This resulting the outcome of election usually take a long and
exhausting time. Election outcomes generally would be known after 2 weeks to 1
month after the ballot conducted. The situation is common happening in transitional
democracies, the official vote count often can take days, even weeks, to be publicly
announced. Extended time lags between the completion of voting and the
announcement of an official result may produce an uncertain political climate or a
political vacuum that threatens stability. An accurate, credible quick count can
forecast returns in a timely fashion, help reduce postelection tensions and increase
citizens’ confidence in the election outcome.10
The Quick Count is basically a quick calculation using samples from ballot box
(TPS) that taken scientifically. If done correctly, the quick count results will not
differ much (less than 1%) from the actual election results announced by the KPU.
Through quick count, calculations can be done quickly. At least 4 hours after the
vote counting, voters can already know who the winner of the election.
9
https://ekonomi.kompas.com/read/2018/02/13/105109526/mengulik-bisnis-jasa-konsultan-
politik-di-indonesia
10
2002. The Quick Count and Election Observation, National Democratic Institute for
International Affairs
6
LSI Denny JA is one of the institutions that play a role in popularizing the quick
count. Every time conducting a quick count, LSI always makes press conferences
and works with national television and local media broadcast live "quick count
results”. Currently, there is an exhilarating phenomenon. Candidates who lose in
quick count often congratulate the (prospective) winner. In that fashion, local
political conditions can be stable and not tumultuous.11
Since 2005, LSI Denny JA has conducted hundreds of quick counts with
accurate and precise results. All quick count is done with a fast process, just less
than 4 hours after the vote is over. Quick count results are published in press
conferences and cooperation with national television (TV One and Metro TV) and
local television. LSI Denny JA received a number of awards for quick count
accuracy from MURI (Indonesian Record Museum) for quick count accuracy in
forecasting elections. The following is the list of Quick Count performance awards
received12:
a. Most accurate in performing quick count in Sumbawa Regency (November

2010). The difference between the quick count result and the actual result
of the General Election is 0%. Prior to this record, LSI also created a record
of quick count results on the elections of the East Tanjung Jabung Regent,
Jambi. The fast count of LSI differed only 0.05 percent with the results of
local KPU calculations.
b. The fastest Quick Count announced accurately (1 hour after polling station
closed) in the 2009 Presidential Election. This quick count is broadcast live
on TV One.
c. Accurate Quick Count consecutively in 100 times.
1.2.3. Public Opinion Maker
LSI is also a public opinion maker. The results of the Indonesian survey and
LSI's opinions have adorned national media coverage, and become an important
reference for political elites, political parties and policymakers. Since its
establishment in 2005, once every three months, LSI conducted a nationwide
survey by asking them public opinion on public issues and policies. Starting from
the actual issues to important issues such as democracy, Islam, tolerance,
11
https://id.wikipedia.org/wiki/Lingkaran_Survei_Indonesia
12
http://muri.org/?s=lingkaran+survei+indonesia
7
performance of public institutions and so forth. The results of the its surveys were
published by LSI at a regular press conference. The results of the its surveys have
often received media attention by placing them as important news. The LSI Denny
JA survey results received a broad coverage portion. Be the subject of debate among
the elite and political figures. Survey results are often the main subject of debate
and discussion in talk shows. Museum Rekor Indonesia (MURI)13 in 2011, awarded
LSI Denny JA for the success making survey results reported on the main page of
the newspaper continuously. The MURI record was awarded after LSI Denny JA
succeeded in making a 7-time press conferences (during June-October 2011) and
the seventh consecutive press conference became the national news headline.
1.3. Business Performance
The business has thrived in a satisfactory performance for the last 13 years. Its
brand has reached a very good positioning for winning the most governors and all
presidential election. The winning rate of LSI Denny JA assistance averagely is in
70%-90%. As from financial performance, the situation is still favorable even
though there is a declining trend in the last semester. But unfortunately, as LSI
Denny JA is a private company, the author cannot show any financial data. The
10% decline in the last semester is significant if taken into account, the concurrent
elections are happening in one time.
Table 1. The Aggregation of LSI Denny JA Clients

SURVEY POLITICAL CONSULTING
Terminated Counted Winning
Survey QC Win Lost Assistance
Contract Contract Percentage
Before Concurrent Elections (Annual System)
2005 33 3 8 2 1 11 10 80%
2006 58 3 15 1 5 21 16 94%
2007 9 - 5 2 1 8 7 71%
2008 38 - 6 1 3 10 7 86%
2009 49 5 31 3 1 35 34 91%
2010 123 10 20 1 1 22 21 95%
2011 63 6 7 4 6 17 11 64%
2012 62 9 11 4 8 23 15 73%
2013 85 15 19 7 6 32 26 73%
Concurrent Elections
2015 92 20 25 8 6 39 33 76%
2017 85 4 7 1 4 12 8 88%
2018 22 0 0 0 0 15 15 N/A
TOTAL 719 75 154 34 42 245 203
Source: Lingkaran Survei Indonesia Network
13
Museum Rekor-Dunia Indonesia or MURI (formerly Indonesian Record Museum) is a museum
which is a place to record data of superlative achievements in Indonesia.
8
While this study cannot measure the declining from financial sector, it is clear
that even though the winning percentage is still considered high, the number of
clients in the last 2 years has declined. The situation could threat the sustainability
of the company.
1.4. Problem Statement
With the declining from the number of clients, the problem could be measured
with Purchase Action Ratio (PAR). This new metric is introduced in Marketing 4.0:
Moving from Traditional to Digital (Kotler and Kartajaya, 2016). Even though, this
study does not examine the correlation between the metric with the business
declining performance, the author uses the PAR metric as a proxy to indicate the
problem. The focus is set to the PAR metric because there is an alignment between
business performance measured by the number of clients who purchase the services
and its impact to financial sector.
In Marketing 4.0, there are stages of the consumer journey known as 5 A’s,
which consist of aware, appeal, ask, act, and advocate. Aware stage is when people
know or aware about the brand, appeal stage is when people start to like the brand,
ask stage is when people try to find out more about the brand then convinced to do
the next stage, which is act stage or purchasing. If the consumers satisfied about the
brand, it will lead them into the next stage, which is to advocate or recommend the
brand to other people. The function of PAR metric is to measure the conversion rate
from awareness to act (purchase). The ratio is measured by dividing market share
with brand awareness. The breaking down formula to calculate PAR is as the
following:
In the following table, the market share data is derived from the total of clients
who purchased the services (Act/Purchase) divided by the total market, which is
9
the total number of head regent elections throughout the country. As for the brand
awareness data is derived from people who aware by the brand of LSI Denny JA
divided by the total market. The number of people aware with the brand is derived
from LSI Denny JA’s annual survey to their prospective clients that could be
overviewed in Appendix A5.
For political consultant, brand awareness is very important in the fiercer

competition. Many delighted clients are reflected by repurchasing the service that
LSI Denny JA offers. The only problem is repurchasing only occurs just in one time
because of the tenure limit period. Thus, the goal in the end is to reach a high
number of customers who are willing to advocate LSI Denny JA’s brand—
expressing it as a better brand than the other political consultants.
Table 2. LSI Denny JA’s Purchase Action Ratio
MARKET SHARE BRAND AWARENESS

Market Brand
Act/ Purchase Total Market Aware Total Market
Share Awareness
Before Concurrent Elections (Annual System)
2005 40 213 19% 64 213 10%
2006 71 78 91% 31 78 10%
2007 16 41 39% 21 41 30%
2008-2009 123 154 80% 92 154 30%
2010 134 224 60% 157 224 60%
2011 68 87 78% 70 87 60%
2012 68 79 86% 71 79 90%
2013 96 150 64% 150 150 90%
Concurrent Elections
2015 105 240 44% 240 240 95%
2017 89 101 88% 101 101 95%
2018 37 171 22% 171 171 95%
* Act/Purchase data derived from survey plus counted contract (minus QC) of LSI (see Table 1)
** a. Total Market 2005-2013 derived from recap election (Ministry of Internal Affairs)
b. Total Market 2014-2016 derived from:
http://www.republika.co.id/berita/nasional/umum/15/02/24/nk9bsp-ini-jadwal-lengkap-pilkada-
2015
c. Total Market 2017 derived from
https://www.liputan6.com/pilkada/read/2436435/ini-101-daerah-yang-gelar-pilkada-serentak-
2017
d. Total Market 2018 derived from
http://otda.kemendagri.go.id/CMS/Images/InfoOTDA/Daftar%20Daerah%20yang%20Melakuka
n%20Pilkada%20Serentak%20Tahun%202018.pdf
*** Aware data derived from LSI Denny JA’s internal survey with prospective clients (see Appendix A5)
In the above extrapolation, LSI Denny JA’s brand awareness rate is high. The
high rate of awareness defines a high attraction level. People who have known the
brand are delighted enough to ask and observe it. But, in other hand, the PAR in
2018 is 0.2. The result defines that its success in reaching brand awareness to 95%,
10
not aligned with the clients who purchase the service. LSI Denny JA has failed to
convert 80% of the prospective clients to act.
The high market share rates shown in 2006 (91%), in 2008 (80%), in 2010
(86%), and in 2017 (88%). The situations happened because LSI Denny JA had
made a contract agreement with some political parties to conduct national scope
surveys for their head candidates. Contract agreement with political party gives a
favorable impact and it is proven by the high rate of market share.
However, in the last semester (December 2017 – May 2018), the market share
rate shows a significant declining number (66% decreased), whereas the concurrent
elections will be held in June 2018. The low rate of market share also indicates the
low commitment. People are talking about the brand without making the
commitment to buy. This could mean that the brand has failed to convert confirmed
interest into purchase through its distribution channel. There are many possibilities
like internal flaws or external forces that may contribute to the situation, thereby
this research is needed to figure the root of problems and increase the commitment
of clients to act. Although the causes still need to be analyzed, the business reaction
of the declining PAR is already noticeable. There are several substantial
implications due the declining of purchase action ratio (PAR):
Financial
Declining sales and increasing costs
Having a sustain business in Indonesian politics sphere is not an easy flow. LSI
has a distinctive fashion in managing its financial book. Before 2015 when elections
were held every year, there was no a special handling in the finance. But since the
concurrent elections had partially decided, LSI Denny JA must save all the revenue
to replenish the next 18 months costs. With PAR rate declines, the impact will
deduct the top line and feared could not meet the costs that every year is rising.
Ultimately, lower topline combined with consistently cost escalation from time to
time will have severe and significant impact to the bottom-line―i.e., net profit―of
LSI Denny JA. In the long-run this will trigger volatility towards the sustainability
of LSI Denny JA.
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Non-Financial
Declining Market Share
Lower number of projects can lead a decline in term of market share and will
bring LSI Denny JA to experience significant loss. If LSI Denny JA could not
retrieve the amount of market share, it is feared it will struggle in sustaining its
brand position as one of top-of-mind political consultant in Indonesia.
Figure 1. LSI Denny JA’s PAR in 2018

Fixing the main issue will help the LSI Denny JA to raise its PAR rate and in
turn sustain the company’s existence. Therefore, this study required to
comprehensively find the fundamental causes by conducting thorough analysis both
internally and externally.
1.5. Research Questions
This study is developed based on the main current issue that LSI Denny JA is
facing, that is the significant decline of PAR in this crucial semester. Based on the
main problem, this study can develop several research questions (RQ) as follow:
RQ-1
Are there any internal factors affecting the decline in the purchase action ratio?
a. Is the brand no longer fit with current segmentation, targeting, and

positioning?
b. Is the combination of product and pricing no longer relevant since there’s a
shifting character of the market served?
c. Given some unfavorable conditions what’s the impact on sales and
promotion efforts?
12
RQ-2
Are there any external factors affecting the decline in the purchase action ratio?
a. How do political system changes, sluggish economic growth, and stricter

law enforcement affect LSI Denny JA’s business?
b. Are there any gaps between LSI Denny JA’s offerings compared to
competitors’ offerings and customers’ expectations?
RQ-3
Is transforming into digital marketing the only solution for LSI Denny JA’s main
issue?
1.6. Research Objectives
There are several sub objectives that will help to answer the main issue of this
research. The objectives will justify the result of this research study. Based on the
research questions, there are several research objectives as follow:
RO-1
To identify and analyze whether there are some internal factors affecting the decline
of LSI’s purchase action ratio.
a. To analyze whether LSI Denny JA’s brand is still fit with current
segmentation, targeting, and positioning.
b. To analyze whether the combination of product and pricing is still relevant
in the shifted market.
c. To analyze the impact of internal factors to LSI Denny JA’s sales and
promotion.
RO-2
To identify and analyze whether there are some external factors affecting the
decline of LSI’s purchase action ratio.
a. To analyze how political system changes, sluggish economic growth, and

stricter law enforcement affect LSI Denny JA’s business.
b. To analyze how those conditions, affect several closest competitors’
characteristics as well as its customers’ expectations.
13
c. To analyze whether there are any gaps between LSI Denny JA’s offerings
compared to competitors’ offerings and customers’ expectations?
RO-3
To answer whether transforming into digital marketing is considered one of the

most appropriate option for LSI Denny JA’s main issue. By getting the objectives
answered, a conclusion can be made whether LSI Denny JA should do the business
in its traditional fashion or create digital channel on top of the existing traditional
business.
1.7. Limitations of Research
This research is based on final project in Business Administration of Institut

Teknologi Bandung. Hence, there are some limitations that could not be delivered
in the outcome of this research:
1. The study focuses in outlining political consulting as a business entity. It

will not tackle any political nor social science issues.
2. The aspect of firm’s financial aspect is confined due the policy of LSI
Denny JA.
3. The data used in the study (both qualitative and quantitative) is still
limited to a certain extent, although there is still relevant data not
collected.
1.8. Conceptual Framework
This research comprises of four chapters graphically shown in Figure 2 and as

the written conceptual framework will help LSI Denny JA to solve the business
issues and formulate a novel marketing strategy. According to Rothaermel in his
book, Strategic Management (2017) in how do firms craft and execute a strategy
that enhances their chances of achieving superior performance is by doing the AFI
(Analyze-Formulate-Implement) framework.
Analyze stage is strategy analysis, which discusses about LSI Denny JA’s
internal and external analysis. Internal analysis consists of its core competences,
brand related elements such as segmenting, targeting, and positioning (STP)
14
analysis, and its marketing-mix. While, external analysis consists of PESTEL
analysis and Porter’s five forces model.
Figure 2. The Conceptual Framework
Formulate stage is formulating a proposed strategy that consists of brand,

product, and promotion strategy. This analysis stage will be discussed in Chapter
3. While implement stage is designing formulated strategy into action and will be
discussed in Chapter 4.
1. Chapter 1
The introduction consists of LSI Denny JA general business overview,
business performance, problem statement, research questions, objective of
the study, and the limitations of the study.
2. Chapter 2
The business issue exploration consists of conceptual and theoretical
framework part of this study. This chapter outlines the material collected
from interview, and relevant literatures. In this chapter, the first stage of the
AFI framework, which is ‘Analysis’ is discussed. The first section consists
of internal analysis that explored by the founder interview, STP framework,
and marketing-mix. The second section consists of external analysis that
explored by PESTEL and Porter’s Five Forces. The third section consists of
factors influencing consumer channel purchase behavior and consumer
value dimensions.
15
3. Chapter 3
The business solutions consist of the methodology in solving the problem.
This chapter also explains the research design with qualitative, quantitative
approaches, and formulation of the new strategy. The author uses 4C
Diamond Model and SWOT tools for qualitative approach and client’s
questionnaire result for quantitative approach.
4. Chapter 4
The implement stage to resolve the current challenges and a complete
proposed strategy implementing marketing 4.0 strategy for LSI Denny JA.
16
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CHAPTER 2
BUSINESS ISSUE EXPLORATION
2.1. General Business Strategy
With the interview with Denny J.A.—the founder of the company, he defines
the business as a convergence between survey conductor and political consultant.
LSI Denny JA accentuates that its core competency is in political marketing.
LSI Denny JA wants to bring out the clients’ characters to be eventually chosen
by the public. That's the point: How to make the character chosen by the public. To
get there, LSI needs to do all things required by marketing. First, they must know,
what the market/voters wants from a character. In a commercial term, it is called
“market research”, as LSI Denny JA calls it “public opinion survey”. Public opinion
survey uses a very modern concept of statistics, let’s say 250 million people in
Indonesia, whose voters aged 17 years and over, amount approximately 140 million
people. They are going to be represented with a sample of 1,000 or 1,200 people.
The amount of sample is sufficient, in condition that the surveys are conducted with
a proven scientific methodology. In this political marketing there are approximately
4 important elements initiated by LSI Denny JA and then followed by others:
2.1.1. A Convergence between Practical Politics and Science
This is a political work that convergences practical politics with the tradition of
science. LSI Denny JA brings science into politics through creating strategy
underpinned on data. In that order, politics is no longer formulated by feeling or
intuition but relies on the data, which is guided by understanding the "voting
behavior" -- the behavior of the voters. The first important variable is the variable
of the research. This is a research on how to understand voter behavior in an
electoral district, whether it is a state, a province, a county, or a municipality.
Several things that should be acknowledged to know in the data explored through
the survey are as follow:
1. What is the most popular issue there (the most liked by the public);
2. What mediums are most widely viewed by the public (what radio, what
newspapers, what TV channels) and also outside other medium media such
as billboards, pictorial shirts, or more like door-to-door; and
17
3. Segmentation of the voters themselves, how are these voters divided? For
example, based on its religious configuration, its ethnicity configuration, its
economic configuration, whether are in middle, upper, or lower class. Why?
Because the voter is very grounded to the segment. Those who come from
the lower classes for example or who are fanatic religion will act differently
from those who are classified as upper class or more secular. It's all read
through surveys.
Other than voting behavior, what’s also relevant is the number of candidates
who compete in the contestation. How many candidates are known then who is their
closest rival, who is preferred over the day. So first, is the data. Well this data is
undertaken regularly. Let’s say that in a year of election or presidential election,
survey is conducted every 3-4 months. In doing that, LSI Denny JA can see the
trend of the clients’ character, whether it is ascending, descending, or stagnant with
the competition against his/her political opponents.
2.1.2. Image Building
The second important variable of political marketing is the work of image

building (popularity, favorability, and electability) to the character. How LSI
Denny JA introduces the character to the voter so the clients are better known as
the awareness of the character (brand awareness) increasing. The second order is
also not only known, but also favored. How to get the clients to be liked is often
directly related to what program that he/she brings and what personality will be
introduced there. Is he/she the person that LSI Denny JA needs to exhibit close to
the people, caring about the people; whether a simple person, or, a strong
leadership. It will all be read from the survey. Third, the electability is how the
clients’ positioned amongst political opponents.
2.1.3. Battle Strategy
Strategy variables (Battle with Foe). It may only the variable “to be elected,”
which is how to defeat the competitor. Other than that, being popular and favored
will be in vain since in election, there is only one winner. Thereby, learning the
position of clients with their competitor becomes pivotal. Clients can be very strong
in term of popularity and favoritism, but still cannot be elected because the
opponent is much stronger, e.g. it was Hillary Clinton was definitely elected as the
presidential candidate from Democrats, unfortunately, there was Obama at that
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time, Obama was stronger than Hillary. If the clients are strong but their political
opponents are stronger it will be a problem. Then how to deal with this
circumstance?
The first strategy is upgrading. LSI Denny JA elevates to the charm of the
clients. The second strategy, downgrading - decreases competitors' charm. In most
cases, the competitors’ charm started with high level of charm turned to be
unpopular because the strategy of downgrading worked. This strategy is also known
as “Negative Campaign”. The philosophy of Negative Campaign is society will be
much better if given as much information as possible about the potential leaders,
including their downsides. Just like people selling products, the negative side must
be told. Like a cigarette company who should tell risk of heart attack, lung cancer,
and even impotence due smoking—if people still want to buy, it is their business.
But the negative side should be notified. It is allowed in a democracy. Negative
campaigns usually contain higher quality information than positive advertisements
since they are typically better sourced, while in other hand, positive ads rarely
provide sources for their own claims.
2.1.4. Identity Politics
The last variable is notoriously controversial because it involves identity

politics. Oftentimes, identity affects substantially in immature democratic country;
concerning primarily religion, race, and ethnicity. For example, if in the majority
of people who are Catholics, it will be very difficult to win the candidates who are
Muslims, or in America itself, the majority of Christians, only 2-3 elected President
outside Christian, and even then, Catholic. The problem then, at what level the
identity politics can be played? Jakarta’s gubernatorial election as an example—
Basuki Tjahya Purnama a.k.a Ahok was defeated by identity politics. From the
political performance, people favors him but the voting cohorts are
multidimensional. Leaders who are not keen in analyzing voter behavior will be
defeated.
2.2. Internal Analysis
Internal analysis is an exploration of company’s core competencies, resources,

and capabilities. This tool can elaborate company’s strengths and weaknesses.
Ideally, firms want to leverage their internal strengths to exploit external
19
opportunities, and to mitigate internal weaknesses and external threats (Rotahermel,
2017). In this part, LSI Denny JA’s internal analysis will be elaborated using the
digital review, PESTEL analysis, and marketing-mix.
2.2.1. Digital Review
In the book of Marketing 4.0: Moving from Traditional to Digital, it is stated

that:
Marketing 4.0 is a marketing approach that combines online and offline

interaction between companies and customers, blends style with substance in
building brands, and ultimately complements machine-to-machine connectivity
with human-to-human touch to strengthen customer engagement.
With aforementioned definition, the digital transformation is required to

complement the conventional business system—which is still needed in the
transforming era like now. As for LSI Denny JA, its conventional business system
from the products, promotion, selling, and delivering service are still running well,
especially in the remote areas. Meanwhile, for digital development, LSI Denny JA
has developed a digital ecosystem in some parts of the business as follow:
1. Digital tool for door-to-door campaign. It fastens the data collection and
eases the monitoring function with accounted digital traces;
2. Digital tool for banner campaign. It eases the monitoring function where the
banner located in precise positions;
3. Digital tool for quick count. It fastens the field data collection into one
integrated system; and
4. Digitroops company (established in 2016) as the sister company of LSI
Denny that tackle the production house and social media campaign.
The development of digital sphere in the business is still in early stage, but
Digitroops has started to improve its ability to master not only social media but also
digital media to support LSI Denny JA’s core business.
2.2.2. Segmenting, Targeting, and Positioning (STP) Analysis
All of marketing are built on STP – Segmenting, Targeting, and Positioning

(Kotler & Keller, pg.310). From these three factors, LSI Denny JA can determine
which are the customers that exist in society, then it selects one or more costumer
based on the segmentation result, which one that LSI Denny JA can serve best. For
20
the last factor would be how it optimizes the products / services to meet the market
by communicating a tailored strategy to impose LSI Denny JA brand into customer
minds.
2.2.2.1. Segmentation
Kotler and Armstrong define market segmentation as dividing a market into

distinct groups of buyers who have distinct needs, characteristics, or behavior and
who might require separate products or marketing-mixes (Kotler and Armstrong,
2005: 54).
The market segment for LSI Denny JA is actually convenient and already
straight forwarded. Their clients are mostly people who propose in joining the
political contestation from all regions in Indonesia.
Table 3. Segmentation of LSI Denny JA
Segmentation
Brief Explanation Typical Segments
Base
Demographic Quantifiable population characteristics. Politicians, Entrepreneurs, Local Elites
Geographic Physical location or region National level, Province level, City level,
Regent level
Behavioral Purchasing, consumption or usage behavior. Proposing to legislative, head district, and
Presidential Elections
Source: LSI Denny JA
2.2.2.2. Targeting
Targeting is a follow-on process from segmentation and is the process of

actually determining the select markets and planning the advertising media used to
make the segment appealing. From that segment, LSI Denny JA focusing on target
clients who have a high purchasing power and potential to be upgraded in both
popularity and electability. LSI Denny JA is well-known to aim helping
“somebody” who are identified as:
1. Well-known figures and have a high electability level

2. Not widely known but have achievements that can be marketed because it
is needed by the people, e.g. Jokowi who succeeded to develop Solo
3. Not yet widely known, has not got any achievements, but have big fund
supports.
21
The level of electability could be sought by the survey (electability), news
media (popularity-favorability), or support from a strong political party (financial
support).
2.2.2.3. Positioning
Positioning is concerned with how the customers perceive the products and
how it is defined by the customers in order to maximize the potential benefit to
the company. The result is a persuasive reason why the target market should buy
the product (Kotler and Keller, 2009: 38). To explicate the positioning of LSI
Denny JA, there can be a concise yet comprehensive positioning statement as
follows:
For politicians, entrepreneurs, and local elites, LSI Denny JA is political

consulting that helping candidate to prevail the elections within winning high rate
because only LSI Denny JA that is the pioneer and has proven trajectory in most
precise Quick Count and Survey and has prevailed the most head regents and
three presidential elections three times in a row.
2.2.3. Marketing-mix
The marketing-mix is the set of marketing tools that the firm uses to pursue its
marketing objectives in the target (Kotler, 2000:9). It has been a foundation model
in marketing, namely product, price, place, and promotion.
2.2.3.1. Product
LSI Denny JA’s product is in the form of services. There are divided into two
big divisions - Survey and Political Consulting. As for the derivatives of these
services are as follows:
a. Survey
Survey, Tracking Survey, Parallel Survey, Quick Count
b. Political Consultant
Mobilization, Media, Public Space, Creative Campaign, Social Event,
Negative Campaign, Witness and Volunteer Training
For LSI Denny JA, survey product is the foundation for the business, hence it
takes working on surveys with a very high-quality standards. LSI Denny JA has its
22
own way to keep each survey execution is scientifically standardized. It hires many
“ghost supervisors” to observe and superintend the formal field supervisors. Also,
it has developed a software to help the surveyor and campaign manager conduct
any field survey. The system has well proven as LSI Denny JA is known for its
accurate survey results, yet to build it is not an easy task. It takes exhaustive
trainings, gaining trusts, and considerably higher cost to implement this fashion of
survey conducts.
As for political consultant product, LSI Denny JA uses different channels in

delivering the product. The winning assistance need strategy planning which is
based on survey result then projected in the blue print of several programs, such as
events, publicities, campaign, and witness training in the election day. Most of those
programs are executed in offline basis since they require face-to-face meetings and
field works. However, for publicities and creative campaign, LSI Denny JA uses
offline and online basis. Offline publicities are well known published in common
public spaces, such as billboard, mass media, television, and radio. While for online
basis, LSI Denny JA relies on Digitroops. Even though the work scopes are mainly
in creative production and social media management, Digitroops has developed a
new tool to oversee the clients’ conversation in social media and provide “troops”
to maintain client’s good reputation.
2.2.3.2. Price
Price is the value that is put to a product or service and is the result of a complex
set of calculations, research and understanding and risk-taking ability. LSI Denny
JA uses premium pricing strategy for the winning assistance product. The price
offered by LSI Denny JA can be 2 to 3 times higher from its competitors because
the quality of survey results and meticulous strategy in winning the elections. For
those candidates who do have the funds it does not matter, because they pursue the
probability of victory and probability to express the fondness of public opinion. LSI
Denny JA can do this because the its winning rate ranges from 70% - 80% (see
Table 1).
2.2.3.3. Place
LSI Denny JA’s office is located in Jalan Pemuda No. 70, Rawamangun, East
Jakarta. The office location is merely a representative of how credible the business
is. Even though the office is located in Jakarta, but in order to deliver the services,
23
LSI Denny JA usually sets the temporary infrastructure in targeted areas since the
services are project based.
2.2.3.4. Promotion
Since its establishment in 2005, LSI Denny JA has done several hard
advertisings through mass media and TV ads. The most well-known advertising
that proven to reach a high brand awareness is “Menang Satu Putaran Saja” (win in
one round only) since the assistance on SBY’s 2004 presidential election
undertaken.1 A very high amount of publicities were periodically performed until
the mid of 2010 at almost zero cost. Nevertheless, after it has succeeded in
prevailing Anas Urbaningrum as the chairman of Democrat Party, it has decided to
cease any hard publicities due the company policy to embrace more into social
sphere. LSI Denny JA believes that hard publicities as selling the product are no
longer needed since brand LSI Denny JA itself has widely known in national scope,
and the market is niche. Furthermore, it is now using social corporate responsibility
programs as soft publicities. Every 2 or 3 months periodically, LSI Denny JA
conducts a social research concerning updated issues and shared it freely to the
public through a press conference. It is obvious that in creating brand awareness
will take a huge amount of investment, but for LSI Denny JA, it is unnecessary to
be high-cost since the advertising cost could be put as client’s cost to upgrade
him/her - but resulting a big impact for LSI Denny JA’s brand itself.
Beside the aforementioned four aspects of marketing-mix, people variable is

one of most important variables in consulting service. The most personnel are in
the assistance division since prevailing the elections is the business core of LSI
Denny JA. The majority employee competencies sought are from political science
and communication.
2.3. External Analysis
For external analysis, the author uses two theories; PESTEL Analysis in order
to analyze the impact of externalities aspect to LSI Denny JA; and Porter’s Five
Forces to analyze the external threats.
1
https://nasional.kompas.com/read/2009/07/03/17500545/denny.ja.iklan.satu.putaran.dibiayai.sese
orang
24
2.3.1. PESTEL Analysis
There are many tools that can be used to identify the externalities. One common
tool that the author consider could elaborate holistically is PESTEL Analysis
(Political, Economic, Social, Technology, Environment, and Legal) describes a
framework of macro-environmental factors used in the environmental scanning
component of strategic management. It is part of an external analysis when
conducting a strategic analysis or doing market research and gives an overview of
the different macro-environmental factors to be taken into consideration. It is a
strategic tool for understanding market growth or decline, business position,
potential and direction for operations.
2.3.1.1. Political Factor
Political consultant is a risky business since it relies mainly to a conducive

political situation. But unfortunately, since the reformation arrived in 1998, the
election laws changed several times. This time its change has shifted the behavior
of the culprits in the business, from the political party, candidates, and political
consultant itself.
With the new regulation set by General Election Commissions (KPU) of

Republic of Indonesia, there are some significant changes that may affect the future
of political consultant business:
1. Regulation of the election commission of the Republic of Indonesia (PKPU -

Peraturan Komisi Pemilihan Umum) No. 1 of 2017. In this regulation, it is
mentioned that the direct election will be held concurrently on 27 June 2018.
The total number of areas that follow the concurrent elections is 171 regions
with the composition: 17 Provinces, 115 Districts, and 39 Cities;2
Peraturan Komisi Pemilihan Umum) No. 4 of 2017. In this regulation, it is
mentioned that General Committee Commissions have decided to restrict some
campaign methods:
a. Restriction in reprinting of the number of campaign materials. The KPU
facilitates implementation of the deployment method campaign materials
2
2018. Ministry of Internal Affairs of the Republic of Indonesia,
http://otda.kemendagri.go.id/CMS/Images/InfoOTDA/Daftar%20Daerah%20yang%20Melakukan
%20Pilkada%20Serentak%20Tahun%202018.pdf
25
such as flyers, leaflets, brochures, and posters based on KPU’s
specifications. If the candidate wants to print more than what has been
facilitated by the KPU, then the maximum limit is 100% of the number of
household heads in the election contest area.3
b. Restriction in mounting campaign props. The KPU facilitates the
installation of campaign props with standard qualifications such as
billboards/videotrons with maximum 5 installations, banners with
maximum 20 installations, and pennants with maximum 2 installations. If
the candidate wants to mount more campaign props than what has been
facilitated by the KPU, then the maximum limit is 150% from the maximum
amount of each props;
c. Restriction in the determination of the proviso and number of airing and the
size or duration of the campaign's advertisements.
i. The number of Campaign Ad broadcasted on television for each
Candidate Pair are the most cumulative 10 (ten) spots, shall be 30
(thirty) seconds long, for each television station, daily during the
Campaign Ads period.
ii. The number of Campaign Ad aired on the radio for each Pair of
Candidates are at most 10 (ten) spots, shall be 60 (sixty) seconds long,
for each radio station, daily during the Campaign Ads period.
Peraturan Komisi Pemilihan Umum) No. 5 of 2017 on campaign funds
restrictions. It is stated that the donations of campaign funds derived from
private legal entities and parties of a maximum of Rp750,000,000.00 (seven
hundred and fifty million rupiahs), while the contribution of individual parties
amounts to IDR75,000,000.00 (seventy-five million rupiah).
With these new regulations, the former Regulation of the election commission
of the Republic of Indonesia (PKPU-Peraturan Komisi Pemilihan Umum) No. 7 of
2015 and No. 12 of 2016 revoked and declared null and void. With the new
regulation in political party system, the novel thresholds are applied for the
candidacies for Governor - Vice Governor, Regent - Vice Regent, and Mayor –
Vice Mayor. Enabling to propose as a candidate, they must be carried by political
Parties or Combined Political Parties obtaining at least 20% (twenty percent) of the
3
PKPU No. 4 of 2017. Article 23, Act 2-3
26
seats of the Regional People's Legislative Assembly or 25% (twenty-five percent)
of the accumulation of valid votes in the Last Election4.
Those requirements affecting the behavior of political candidates since they

need to find the support from certain political party first, and that requires a lot of
money. Even though the law has forbidden for a candidate paying a compensation
to one political party or combined political parties5, this practice is still performed
in almost every election activity. This situation has been explained by many experts
in politics, including the Director of Saiful Mujani Research Center, Djayadi. He
said that the presidential and head district threshold will cause inorganic coalition
amongst political parties and lead into more political transaction6. Since they would
spend a lot in obtaining political party’s support for the first place, their spare
resources to be spent in political consultant service decreasing.
Based on data presented by Katadata (2018), the phenomenon of single

candidate pair in the Regional Head Election (Pilkada) re-occurs in 2018. The
number of regions that have single candidate pair, even doubled than the previous
elections. This is an anomaly for Indonesia which has multiparty system and high
population. there are several factors that cause this phenomenon, which are the
rising threshold itself, higher political costs, the low level of parties’ regeneration,
and the dynamics of local politics.
Regions with single candidate pair in 2018 concurrent elections include

Tangerang City, Prabumulih, Tangerang District, Lebak, Pasuruan, Enrekang,
Southeast Minahasa, Tapin, Puncak, Mamasa, Jayawijaya and Padang Lawas
Utara.7
This resulting no alternative choice, the participation rate is potentially stepping

down, and encourage the cartel's political practice. The direct impact for political
consulting industry is many signed contracts were void nor late payment. Even there
are some cases that the clients do not settle the agreed fee. This problem happens
not only to LSI Denny JA, but also to other institutions
4
PKPU No. 3 of 2017, Article 5, Act. 2
5
PKPU No. 3 of 2017, Article 88, Act 1-2
6
https://nasional.kompas.com/read/2017/11/14/16472541/presidential-threshold-suburkan-
transaksi-politik
7
https://katadata.co.id/infografik/2018/01/25/calon-tunggal-anomali-pilkada-era-demokrasi
27
2.3.1.2. Economic Factor
1. Economic Growth
Indonesia’s gross domestic product fell 0.42 percent quarter-on-quarter in the

three months to March of 2018, following a 1.7 percent decline in the previous
period and worse than market consensus of a 0.3 percent contraction. Government
spending, fixed investment and exports shrank. GDP Growth Rate in Indonesia
averaged 1.37 percent from 2005 until 2018, reaching an all-time high of 4.01
percent in the second quarter of 2016 and a record low of -3.57 percent in the fourth
quarter of 2008.
Figure 3. Indonesia GDP Growth Rate
2. Exchange Rates
The USD-IDR spot exchange rate specifies how much one currency, the USD,
is currently worth in terms of the other, the IDR. The USD-IDR increased 50.0000
or 0.36% to 14,045.0000 on Tuesday May 8 from 13,995.0000 in the previous
trading session. Historically, the Indonesian Rupiah reached an all-time high of
16650 in June of 1998 and a record low of 1977 in November of 1991.
28
Figure 4. IDR Exchange Rate (Source: Trading Economics)
3. Business Confidence
In Indonesia, the Business Tendency Index (BTI) measures the expectations of

entrepreneurs about current business income, production capacity, average working
hours and future domestic and foreign orders, selling prices and raw materials. The
survey covers a sample of around 2000 managers from large and medium
companies from almost all regions of the country and from the main sectors of the
economy (Agriculture, Mining and Quarrying, Manufacturing, Electricity, Gas and
Water, Construction, Trade, Hotels, Transportation and Communication, Financial
and Services). For each of the variables measured, the proportion of positive,
negative and neutral answers is computed, and the final index is reported as a
weighted average of those proportions. The BTI above 100 indicates an improving
outlook and below 100 a deteriorating outlook.
Figure 5. Indonesian Business Confidence Rate (Source: Trading Economics)
29
Business confidence in Indonesia declined to 106.28 in the March quarter of
2018 from 111.02 in the previous period. It was the lowest reading since the March
quarter 2017, as income expectations (106.62 from 115.58 in the December quarter)
and production capacity (108.71 from 112.74) softened noticeably. In addition,
average working hours declined (103.51 from 104.72). Business Confidence in
Indonesia averaged 106.76 Index Points from 2000 until 2018, reaching an all-time
high of 122.50 Index Points in the second quarter of 2000 and a record low of 95.12
Index Points in the first quarter of 2006.
2.3.1.3. Social Factor
In today’s digital world, consumers are more empowered than before, with
abundant choices and high expectations. They expect customization and
convenience in their anytime and anywhere shopping. According to Angel (2016),
consumers can now switch channels effortlessly while shopping, as they search
online to buy offline or search offline to buy online and everything else in between,
using more than one channel in their purchase journey. Thus, blurring the lines and
creating new stages in the shopper’s journey beyond traditional concepts (Baik,
Venkatesan and Farris, 2014). At times, social media plays an important role as to
how consumers discover, try and buy (Bell, Gallino and Moreno, 2014).
Consumers often choose channels depending on their needs at specific

situations, their channel choice could be product specific or could be process
dependent. Based on the level of benefit in relation to cost, their choice could lead
to the usage of one or more channels at various stages of the purchase process
(Balasubramanian, Raghunathan and Mahajan, 2005). At times, consumers tend to
shop in traditional stores due to its person-to-person approach. But in the case of
online shopping, the transaction can be done faster from the comfort of one’s own
home, as consumers do not need to spend time and energy travelling to the store,
waiting in check-out lines (Kim, Park and Pookulangara, 2005). Over the last
decade, technology has transformed the consumer into an ‘all knowing and all
seeing’ person (Mathewson and Moran, 2016).
2.3.1.4. Technology Factor
With more than 143 million Indonesian people using the internet – the
penetration reached into 50% of total population, digital has become an essential
30
part of everyday life.8 According to Hootsuite study in January 2018, the annual
growth of active social media users in Indonesia is 23% rise from last year or
approximately 24 million people have joined as the new members in social media.
Google is still ruling the position number 1 in most visited website (Alexa Rank,
2018), as for social media – YouTube, Facebook, and WhatsApp are still in the
top three. As Indonesia Internet Service Provider Association (APJII) found in
the 2017 survey, the biggest penetration is in urban area in 72.41%.
In such a new environment, a citizen no longer passively receives political

information. With the many channels of message spread, they turn into active
citizens. Through social media, political information is consumed, reproduced,
and distributed. Easy access to the internet to private spaces can be used for the
formation of public opinion. Lately also emerged the term 'digital democracy' or
'virtual democracy' which describe how the life of democracy takes place in the
internet world. In addition, the Internet has also become an alternative media to
express the principles of democracy.
2.3.1.5. Environment
The environmental impact is not relevant to LSI Denny JA because its core
business is survey and consulting. But to link with the current environmental
concern, LSI Denny JA supports the paperless movement by maximizing the digital
usage in presenting materials to the clients, conducting surveys and quick counts,
and performing digital campaign,
2.3.1.6. Legal
During 2017, the KPK has handled 114 cases of investigation and “Caught in
the Act” operations for 19 times—the most in Indonesian history9. Based on
infografik released by Katadata with Kompas and Tempo as the sources, stated that
the number of corruption handled by the Corruption Eradication Commission
(KPK) shows an increasing trend. Those trapped are private entrepreneurs,
governors, regional heads, civil servants, members of parliament, judges,
commissioners, and others. Bribery is the largest corruption case and involves many
regional heads and employers involved.10
8
Penetration and Behavior of Internet Users, Indonesia Internet Service Provider Association,
2017
9
2017 KPK Annual Report, Komisi Pemberantasan Korupsi
10
https://katadata.co.id/infografik/2017/09/20/daftar-hitam-korupsi-kepala-daerah
31
Table 4. Number of Caught-in-the-Act Operations of KPK
Caught in The
Act Operation
2005 3
2006 0
2007 1
2008 4
2009 1
2010 2
2011 6
2012 4
2013 10
2014 5
2015 5
2016 17
2017 19
Source: 2016-2017 KPK Annual Report
2.3.2. Five Forces Model
This part discusses about the industry of political consultant structure to derive
implications for LSI Denny JA’s position within this industry. Michael Porter
developed five forces model to help LSI Denny JA understand the profit potential
and how LSI Denny JA posits its firm to gain and sustain competitive advantage.
The rule of thumb is the stronger the five forces, the lower the industry’s profit
potential.
The objective of this model is to understand two major insight. First insight is
the competition itself describes the struggle among the forces of buyers; suppliers;
potential new entry of other firms; and the threat of substitutes - to capture as much
of the economic value created in an industry. Second insight is this model enables
a firm to not only understand their industry environment but also shape the firm’s
strategy.
1. Threat of Entry
The first variable is the of five forces is the threat of entry which defined as the
risk that potential competitors will enter an industry. The main risk is the entry
barriers which are obstacles that determine how easily a firm can enter an industry
and often significantly predict industry profit potential (Rothaermel, 2017). As in
Chapter 1, Denny JA mentioned that political consultant that time was so attractive
32
and fruitful. Within only completing one survey, the return on investment had
already reached11. During that time (2010-2012), political consulting industry was
so attractive since it was still in the blue ocean environment. The iron law of
business is the more profitable an industry, the more attractive it is for new
competitors to enter.
With no any regulations that restrict nor forbid private firms to build consulting
firms, the impact was turning the blue ocean environment into the red ocean
environment. The impact of free market in ASEAN scope also brings several
consulting firms to enter Indonesia market without any significant difficulties. With
this analysis, the threat of entry in political consulting industry is considerably high.
2. Bargaining Power of Buyers
Buyers are the clients of political consulting industry. The power of buyers
concerning on the pressure an industry’s customers can put on the producer’s
margins in the industry by demanding a lower price or higher product quality
(Rothaermel, 2017). When clients successfully obtain the lower fee, it will reduce
the firm’s revenue.
However, LSI Denny JA as a political consulting firm claims as one of top-of-
mind firm that offer the best service in term of election assistance (strategy maker),
which exhibited by its winning percentage averagely in the level 80%-90%. Hence,
the fees they offer are considered more expensive than the competitors. Since the
buyers (clients) are mostly known as the most resources ones, they oftentimes do
not bargain to lower the fees. The switching costs for purchasing political
consulting services are also high. One service, let’s say the survey can cost 150-250
million rupiah per one completion, therefore, the bargaining power of buyers in
political consulting industry is moderate.
3. Bargaining Power of Suppliers
The bargaining power of suppliers defines the pressures that industry suppliers
can exert on industry’s profit potential. Powerful suppliers can increase the cost of
11
Legitnya Bisnis Konsultan Pilkada, Tempo: https://nasional.tempo.co/read/420093/legitnya-
bisnis-konsultan-pilkada
33
production if they demand higher prices for the input they give or by reducing the
quality of service they deliver (Rothaermel, 2017).
Business Dictionary defines service supplier (service provider) as an
organization, a business or an individual which offers service to others in exchange
for payment12. Therefore, the service providers of LSI Denny JA could be divided
into two classifications:
a. Primary service providers
This is the group of service provider whose main works undertake LSI
Denny JA’s business key activities, which are survey and political
consulting. The service providers in primary segment are included
outsourced survey/polling conductors, survey/polling interviewers, and
activist networks. This type of service providers is pivotal for LSI Denny
JA because it will face nontrivial switching costs when changing providers
because they need to be retrained and requalified to meet the standard work
of LSI Denny JA. Albeit these primary service providers are pivotal to LSI
Denny JA, they are contracted in projected fixed costs.
b. Secondary service providers
This is the group of service provider whose main works undertake LSI
Denny JA’s sideline business activities, which are client publicity and legal
consultant. The service providers in secondary segment are included TV
channels, social media enablers, mass media, printing & production house,
and legal consultant. This type of service providers is excessively ample and
is very price competitive. Albeit the charge fees are considered high, LSI
Denny JA will not face nontrivial switching costs when changing providers.
From aforementioned explanation, the bargaining power of suppliers is

considered moderate.
4. The Threat of Substitutes
The idea of threat of substitutes is the product or services available from outside
the given industry will come close to meeting the need of current customer
(Rothaermel, 2017).
12
http://www.businessdictionary.com/definition/service-provider.html
34
Political consulting industry itself a convergence between survey, strategy
maker (including the execution), and publicity.
In survey sphere, currently there are a lot of online polling surveys such as
Polldaddy and Zoomerang. As in online political sphere, there is SurveyMonkey
that can conduct a specific survey based on issue and geography. We can say they
could be the substitute of polling survey conductors with some flaws, there are the
time consumption in compiling the survey data; quality control of the survey data;
and the credibility of the methodology.
In publicity, currently there are a huge amount of substitutions and they are
available from offline to online, to mass media into paid advertising in social media.
But one major problem for doing publicity independently without the right strategy
planning will lead to unmeasurable marketing/advertising.
As for the strategy maker sphere, we can say it could not be replaced by any
robot-advisor for now. Strategy making in politics is different with strategy
planning in finance or stock exchange that can mostly relies on numeric data. In
politics, beside numeric data as the outcome of survey polling, there is social
science that needs to be observed deeper in qualitative research and requires
experienced key persons in understanding wider sphere from politics, economy,
business, psychology, and anthropology.
In this segment, we can conclude that the threat of substitutes in political
consulting industry low.
5. Rivalry among Existing Competitors
This segment describes the intensity of competition shapes the industry

structure. For political consulting industry, the competition is growing and
becoming fiercer since the first presidential election in 2004. There are 56 survey
institutions accredited by General Election Commissions. Not to mention the
private agencies hired by political parties. The following tables are showing on
survey institutions registered in the election commission and private agencies that
have assisted in general elections.
35
Table 5. Registered Survey Institutions in General Election Commissions
SERVICES
NO. INSTITUTION NAME
Survey Quick Count
1 PT. Lingkaran Survei Kebijakan Publik √ √
2 PT. Citra Komunikasi LSI √ √
3 PT. Konsultan Citra Indonesia √ √
4 Media Survei Nasional √ √
5 PT. Citra Publik Indonesia √ √
6 PT. Indikator Politik Indonesia √ √
7 PT. Data LSI √ √
8 PT. Lingkaran Survei Indonesia √ √
9 PT. Roy Morgan Research √ √
10 Lembaga Jaringan Isu Publik √ √
11 PT. Cyrus Nusantara √ √
12 PT. Citra Publik √ √
13 PT. Media Survei Indonesia √ √
14 Saiful Mujani Reasearch & Consulting √ √
15 Cirus Surveyors Group √ √
16 Lembaga Survei Nasional √ √
17 Pusat Data Bersatu √ √
18 Lembaga Survei Jakarta √ √
19 Pol-Tracking Indonesia √
20 Indopolling Network Research, Strategy, & Consulting √ √
21 Political Communication Institute √
22 Markplus Insight √ √
23 Indonesia Research Centre √ √
24 PUSKAPTIS √ √
25 PT. Indo Barometer √ √
26 Charta Politika Indonesia √
27 Pollmark Indonesia √ √
28 Jaringan Suara Indonesia √ √
29 Studi Suara Rakyat √ √
30 PT. Lentera Data Riset √
31 Lembaga Polling Indonesia √ √
32 Political Weather Situation √ √
33 Lembaga Klimatologi Politik √ √
34 New Indonesia √ √
35 PUSLTIBANG Diklat LPP RRI √ √
36 PT. Kompas Media Nusantara √ √
37 Institute for Strategic & Development Studies √ √
38 PT. Alvara Strategi Indonesia √ √
39 Politicawave.com √
40 Lembaga Survei Independen Nusantara √
41 PT. Premiere Epsilon Indonesia √ √
42 Soegeng Sarjadi School of Government √ √
43 Indonesia Research and Survey √
44 Citra Survei Indonesia √ √
45 PT. Indo Survey dan Strategy √
46 PT. Tylor Nilson Sofres Indonesia √
47 POPULI Center √ √
48 Lembaga Real Count Nusantara √
49 Nurjaman Center for Indonesian Democracy √
50 Lembaga Pemilih Indonesia √
51 Survei and Polling Indonesia √
52 Indonesia Survey Center √
53 Founding Fathers House √
54 Litbang Koran Sindo √
55 Riset Kebijakan dan Otonomi Daerah √
56 LOSTA Institute √
Source: Komisi Pemilihan Umum (2014)
36
The intensity of competition has entered the red ocean environment, notably
with the lesser clients will lead to a depression for small players and declining top
line for large players. It can be said that the rivalry among existing competitors in
political consulting industry is high.
Beside the existing competitors that mostly have the same form with LSI Denny
JA, there are also some fresh players who enter political consulting industry with
several new strategies, either local companies or multinational companies. Example
of local new player is Wain Advisory Indonesia, Ltd offers a more complete
package rather than only political services, they also provide legal and government
assistances. As for multinational company, there is Pereira International (Singapore
based) who offers not only survey and assistance but also do lobbying, strategic
communication, and digital-social media enabler.
2.4 The Root of Problem Analysis
After sorting out business, internal, and external analysis of LSI Denny JA there
are indeed some issues that influence the declining of clients.
Table 6. Internal and External Analysis of LSI Denny JA
INTERNAL FACTORS
1. Segmenting people who will join the election contestations is no longer sufficient
since the market is more conical due the political and legal system changed
2. Targeting "somebody" who are strong in electability level, achievement rate, or
Brand (S-T-P)
fund support is still in accordance due the sluggish economic growth
3. Positioning company as "the fastest and the most accurate" is now requiring
another excellence deliver service
1. In the interconnected era, a very high price is considered not wise due the
Product and behavior of clients who seek more in "faster, cheaper, better"
Pricing 2. The product offered: Survey and Consultant are mostly still using the conventional
methodology (offline-based) which take a distant time consumption
Doing direct sales to only prospective clients is no longer sufficient since the market
Sales/Promotion
is more conical
EXTERNAL FACTORS
1. Concurrent Elections and the new threshold change the behavior of clients. Their
priority is to get the political party's support first
Political
2. The restrictions in campaign fund also badger the candidates. The situation
causes the rising number of single pair candidates and carter political practice
“Caught in Act” by KPK is growing and threatening the fund supporters of clients.
Legal
The situation implicates the clients to be more difficult to settle the payment.
37
EXTERNAL FACTORS
Internet and digital era has changed the behavior of clients and voters significantly
Technology
in big cities, while not too influential in small or remote areas.
In the interconnected era, most consumers are more empowered. They expect
Social
customization and convenience in purchasing products and services.
The sluggish economy growth and the low rate of business confidence implicate
Economy
clients to be more cautious and frugal in spending money.
Environment Not too significant for the core business
1. The amount of competitor is growing vastly and competing more in price

Competitor
leadership strategy
2. The new players enter the political consulting industry with a better technology
adaption
Consumer analysis which clients of LSI Denny JA could be slightly depicted in

their shifting behavioral due the changing of external factors, mainly from political,
legal, technology, and economic situations. A deeper analysis about the consumer
insight will be discussed in Chapter 3.
38
CHAPTER 3
BUSINESS SOLUTIONS
3.1. Methodology
The methodology section focuses on the research design. It elaborates on the

choices of research approach and the methods used for data collection and data
analysis. In other words, the research process will expand our knowledge and help
us find solutions for the main issue dealt in this study.
Research data aggregation was taken primary and secondary sources 9both
qualitative and quantitative) which is assumed sufficient to analyze the current
conditions of LSI Denny JA. Data collection was completed through combination
of literature study, internal company study, field surveys, and interview with key
persons in the firm. Methodology in collecting, analyzing, and interpreting data are:
Primary Data
1. Interviews
Data were collected using direct interview with several key persons in
Lingkaran Survei Indonesia Denny JA. They are the owner/founder, board of
directors, survey planners, strategy makers, and campaign/marketing
executioners in the company. The reason of interview put as primary data
because political consultant market is well-known to be exclusive and
confidential due political, law, and company-protecting grounds.
2. Field Research
Align with the interview, this research is underlying the surveys aimed for
clients and desk study for the competitors as the supporting insight for the main
source of this research, which is desk study.
Secondary Data
1. Desk Study
The literatures derived from books, journals, articles, and web blogs. It is
important to identify the sources to provide the background and justification of
this study.
39
2. Internal Company Data
The internal company data are important to support the research study and
analyzing the business issues.
3.2. Client Survey Analysis
The survey was administered on the 24-30 of May 2018, to 20 respondents

represent clients who have purchased the political assistance service from LSI
Denny JA. The survey was conducted via phone call directly to their personal
secretaries, as for they are given multiple choices to suit their answer. The sampling
method was taken in purposive sampling due the limitation of respondents’ time
and willingness to answer/fulfill the questionnaire. Targeting the respondents was
performed one week before the phone interview exerting the client database who
are now holding the tenure. With the help of several key persons in LSI Denny JA,
they convinced the state officials to give credence into the interview for it will not
reveal their identities.
Existing Challenger
New Challenger
Incumbent
0 2 4 6 8 10 12
Respondents
Figure 6. Profile of Respondents

The respondents consist of 5 Governors and 15 Head Regents with the
following details:
1. Five Governors come from 2 Provinces in Sumatra, 2 Provinces in

Sulawesi, and 1 Province in Java.
2. Fifteen Head Regents come from cities or regents in Maluku, West Java,
South Kalimantan, East Java, North Sumatra, Nusa Tenggara Barat,
Bengkulu, Central Kalimantan, and East Kalimantan.
Before taking the office, they are classified into three cohorts. Incumbents are
the ones who already served the first tenure; New challengers are the ones who just
40
joined the election to challenge the incumbents; Existing challengers are the ones
who have been candidates but lost, and they try to join the elections again.
3.2.1. Factors of Choosing LSI Denny JA
The respondents were asked about the priority degree of their preference with
the statements concerning the reasons behind their decision to use services in
Lingkaran Survei Indonesia. According to the survey results the majority, that is
50% respondents prioritize the statement, ‘I use LSI Denny JA service because I
trust Denny JA’; 30% of respondents prioritize the statement, ‘I use LSI Denny JA
service because I want to win’; and 20% of respondents prioritize the statement, ‘I
use LSI Denny JA service because I trust the quality of its survey.’
Survey Quality I want to win I trust Denny JA
Incumbent
New
Challenger
Existing
Challenger
0 1 2 3 4 5 6
Figure 7. Reasons for Purchasing
The research results according to Figure 7, clearly indicated that the incumbents
want to use LSI Denny JA’s service because their trust to Denny JA’s capabilities
to change the voters map and this factor is high due the former elections (50%). The
challenge to defend their position is at stake, hence they must prevail the elections
and they believe Denny JA will ensure that (40%). While survey quality still
contributes as their last priority decision to purchase since they know LSI Denny
JA will not hurt its own reputation (10%).
For the new challengers who never use LSI Denny JA’s service before, the
major reason on convinced to buy is because they trust Denny JA’s trajectory in
winning the candidates (50%). Meanwhile for them, the survey quality is important
to prevail the election, which is a mandatory to meet their ardent desire. Both factor
contribute 25%.
41
As for the existing challengers who compete with the incumbents, trusting
Denny JA and the accuracy of survey are the most important reason to use LSI
Denny JA’s service.
3.2.2 Marketing-mix
1. Conventional Product Satisfaction
The participants of the survey were questioned about their opinion on LSI
Denny JA’s marketing mix. First question concerning the conventional products,
which are surveys and winning assistance (including the political campaign).
According to the results obtained, 55% of the respondents said they are satisfied
with the existing winning strategy plan; 40% of the respondents said they think LSI
Denny JA should do more innovation in conducting the surveys and political
assistance; 5% of the respondents said they feel less satisfied for the work quality
which is not too distinguish.
Existing Challenger
New Challenger
Incumbent
0 1 2 3 4 5 6
Less satisfied Satisifed but need innovate Satisfied with the existing product
Figure 8. Conventional Product Satisfaction
2. Digital Product Satisfaction
The second question concerning the digital products, which is digital campaign
in social media done by Digitroops. According to the results obtained, 45% of the
respondents said they are less satisfied with the social media campaign management
since there is nothing new there, just posting the contents and air them through
organic and paid ads; 15% of the respondents said quite satisfied with the digital
campaign of LSI Denny JA, even though they do not know how to measure the
impact to their electability; and 40% of the respondents said they are neutral due
42
their only focus is to win the election, so any form of campaigns are good to be
done.
Less Satisfied Neutral Quite Satisfied
Existing Challenger
New Challenger
Incumbent
0 1 2 3 4 5 6
Figure 9. Digital Product Satisfaction
3.2.3. Pricing
The third question concerning the pricing of LSI Denny JA products. According
to the results obtained, 50% of the respondents said the pricing is reasonable due
the reputation of LSI Denny JA; 40% said the pricing is still quite reasonable,
especially for the survey pricing, but for campaign, either conventional or digital,
they think how LSI Denny JA fixes the price is vague and the measurement is
equivocal; 10% said the pricing is too high.
Considered too high Quite Reasonable Reasonable
Exisitng Challenger
New Challenger
Incumbent
0 1 2 3 4 5 6 7
Figure 10. Pricing of LSI Denny JA’s Services
43
3.2.4. Promotion
The fourth question in marketing mix, concerning the promotion that LSI
Denny JA has done to reach the respondents. According to the results obtained,
50% of respondents reach LSI Denny JA due its direct marketing addressed to them;
30% of respondents reach LSI Denny JA due the recommendation from political
allegiance (parties or networks); 20% of respondents reach LSI Denny JA due their
awareness from media (press conference, news, and articles).
Existing Challenger
New Challenger
Incumbents
0 1 2 3 4 5 6
Media Recommendation Direct Marketing
Figure 11. Promotion Factors

Meanwhile, the opinion for LSI Denny JA’s promotion in internet sphere are
not quite gratifying the new challenger. In the next question about promotion, the
respondents are asked about LSI Denny JA’s website and social media promotion;
60% of respondents which are consists of 10 incumbents and 2 existing challengers
agreed that they are impressed by Denny’s reputation in social media and network,
hence they think it is unnecessary to observe the official website. In other hand, it
is different with the new challengers who agreed that Denny’s reputation in social
media and network is impressive but not with its official website. They think that it
needs to be improved to nourish more information about LSI Denny JA’s services.
Existing Challenger
New Challenger
Incumbent
0 2 4 6 8 10 12
Impressed by Denny's Reputation but website needs to be improved

Impressed by Denny's Reputation
Figure 12. Reputation and Website
44
3.3. Competitor Analysis
The participants of the survey were questioned about their opinion on other
political consultants. According to the surveys, 40% of the respondents said they
also use other political consultant services while holding the contract with LSI
Denny JA in competing in elections, it is common things to do, so if something
wrong happens with one consultant, they still have another consultant who can
continue the rally.
In other hand, they were questioned about their opinion in comparing LSI
Denny JA with other political consultants. The 55% respondents who ever use other
political consultant’s services said that LSI product price is indeed higher than the
others, but it is not merely considered expensive, since they opine that LSI Denny
JA’s perceived value is deserved to be higher than the others. Yet they also suggest
that LSI Denny JA should consider to not set the price too high in campaign
activities that vaguely could be measured.
Based on the desk study, there are two groups of competitors that LSI needs to
take notice. There are existing competitors that are listed in Table 6, Chapter 2; and
new competitors that bring a new level of services. From this analysis, we can savvy
what is the strength and weakness of LSI Denny JA compared to its competitors.
3.3.1 Existing Competitors
They are national political consultants that founded by well-known intellectuals

and academicians, and they are also popular in media. There are Indikator Politik
Indonesia; Saiful Mujani Research & Consulting; and Poltracking Indonesia1.
These companies can be classified as conventional political consultant and have
similarities in LSI Denny JA in term of service offered, yet we need to analyze
further about their capabilities compared to LSI Denny JA.
The existing competitors may do the business in a similar fashion with LSI
Denny JA does. What differentiate them, considerably identified as the pioneer and
the followers. Denny JA and Saiful Mujani were working as one team in Lembaga
Survei Indonesia, they were both graduated Ph,D in political science from Ohio
State University. Burhanuddin Muhtadi, the founder of Indikator Politik Indonesia
1
http://www.tribunnews.com/metropolitan/2017/02/27/iwd-publikasikan-3-lembaga-survei-
terbaik-yang-prediksi-pilkada-dki
45
is also an active researcher in Lembaga Survei Indonesia, and he is also a PhD in
political science. While Hanta Yuda, the founder of Poltracking Indonesia is a well-
known political observer.
Table 7. The Existing Competitors Comparison
Indikator Politik Poltracking

LSI Denny JA SMRC
Indonesia Indonesia
SERVICE OFFERED
1. Public Opinion
Survey & Research 1. Electoral Survey 1. Electoral Survey 1. Survey
Survey
2. Public Opinion 2. Public Opinion
2. Electoral Survey 2. Quick Count
Survey Survey
3. Digitalized 3. Customer
3. Tracking Survey 3. Media Research
Tracking Survey Satisfaction Survey
4. Qualitative
4. FGD 4. Tracking Survey 4. Electoral Survey
Research
5. Qualitative
5. Exit Poll 5. FGD 5. FGD
Research
6. Quick Count 6. Quick Count 6. Quick Count
1. Change Voter 1. Political 1. Personal

Consulting 1. Omnibus
Mapping Assistance Branding Strategy
2. Personal Image 2. Election
Strategy Campaign Strategy
3. Opinion 3. Policy Marketing
Mobilization Strategy
4. Media Campaign 4. Media Campaign
Strategy Strategy
5. Digital Campaign 5. Digital
Strategy Campaign Strategy
DIGITAL ENABLER
Website 1. Very simple 1. More detail 1. More detail 1. More detail
2. Digital Services 2. Services clearly 2. Services clearly 2. Services clearly
not clearly stated stated stated stated
3. Survey 3. Survey 3. Survey 3. Survey
Publications Publications Publication Publications
4. Article News 4. Article News 4. Article News 4. Article News
5. Published 5. Discussion
5. All menu works 5. All menu works
Literatures Agenda
6. Quick Pool menu
6. All menu works
doesn't work
7. Video menu
doesn't work
1. Denny JA Page
Social Media 1. Facebook Page 1. Facebook Page 1. Facebook Page
(Facebook)
2. Denny JA Twitter
2. Twitter Account 2. Twitter Account 2. Twitter Account
Account
3. Denny JA's 3. Youtube
World (Youtube) Account
Source: LSI Website, Indikator Politik Indonesia Website, SMRC Website, Poltracking Indonesia
Website; Facebook; Twitter; Youtube
46
These companies seize the same market as LSI Denny JA aims to, which is
election market. With 416 regents, 98 cities, 34 provinces, not to mention legislative
elections, the market provides big pies to each companies depending on their own
capabilities. But with the proliferation of small survey institutions and local
political consultants, including the internal research group of political parties, make
the market shrinks and getting harder to seize. These existing competitors are facing
the same problem as LSI Denny JA, fortunately, because LSI Denny JA is the
biggest company and has six subsidiaries, it still can survive in the current
tumultuous situation.
3.3.2. New Competitors
They are national and multi-national political consultants and digital

campaigners that offer new level of services. For the analysis, the author takes four
distinguish companies from the existing competitors. There are Wain Advisory
Indonesia, Ltd.; Pereira International; Ecanvasser; and Hootsuite.
Table 8. The New Competitors’ Business Type
Wain Advisory
Pereira International Hootsuite Ecanvasser
Indonesia
Business Political & Commercial Political & Legal Political Campaign
Digital Campaigner
Type Consulting Consulting Software
Services
1. Strategy 1. Legal Services 1. Scheduling 1. Field Operations
2. Analysis 2. Political Services 2. Content Creation 2. Survey Analysis
3. Government 3. Mapping the voters
3. Lobbying 3. Analytics
Services map database
4. Strategic
4. Monitoring 4. Mobile App
Communications
5. Digital & Social Media 5. Team Management 5. CRM Management
6. Market Access 6. Security
7. Apps &
Integrations
1. The team is filled 1. Many successful
1. Founded by well- with experienced study cases from
1. Regional and
Strength reputed journalist, people in each their well-reputed
National Organizing
intellectual, and lobbyist division: politics, clients that can obtain
legal, and government larger market
2. Advisory board is filled
2. Clients: 16 million
with experienced people 2. GDPR Compliant
users from 175
from international and Assistance
countries
national high offices
3. Train the users to
3. Focusing on Southeast 3. 2000 campaigns in
be certified digital
Asia market 70 countries
campaigner
Source: Pereira Websites, Wain Advisory Websites, Hootsuite Website, Ecanvasser Website
The new competitors are not directly competing in the same market. Pereira
International is focusing more in connecting private sectors to Indonesian and
47
Southeast-Asian government supported by strategic communication in omni-
channels. Wain Advisory Indonesia expanded the target market not only in political
consulting, but also legal and government services. Meanwhile Hootsuite and
Ecanvasser are the new competitors that master the digital sphere, although not
directly competing with LSI Denny JA in the same market, but they are threatening
the business by providing new fashions to do the political survey, analyze, and
campaign. With the shifting behavior of market, LSI Denny JA should really
concern to develop and adopt some relevant services that the new competitors have
started.
3.4 Business Solutions
Based on qualitative and quantitative that have been conducted, this study also
analyzes the issues with the 4C Diamond. This model of analysis is popularized by
MarkPlus, Inc. The 4C diamond model is an abbreviation of Change, Customer,
Competitor, and Company. Company factor have been discussed in Chapter 1 as
the current business situation, while Change factors have been discussed in Chapter
2 as business issue exploration.
Figure 13. 4C Diamond Model (Marketing for Competitiveness, 2017)
This model depicts a nexus between the factors and resulting a solution model
for LSI Denny JA. Change factors that can be classified as external factors cannot
be altered since they are forces that out of company’s control. Thereby, the analysis
examines the coherent internal factors which are classified as the problem roots.
There are Branding (S-T-P), Product & Pricing, and Promotion. This model will
48
lead into Strength-Weakness-Opportunity- Threat (SWOT) examination to clarify
what LSI Denny JA can do to improve its PAR. In the author perspective, TOWS
and SWOT have similar functionality, despite the perspective of the examination,
SWOT is more into inward-looking, while TOWS is more into outward-looking.
But, in this study the supported analysis of 4C Diamond model is performed in
SWOT, nevertheless outward-looking perspective also bolter the analysis.
Table 9. Analysis of 4C Diamond
Change Factors Clients Competitor

BRAND (S-T-P)
∑ Regional Head and Legislative ∑ Pareira International enter new market like
a. Segmentation Elections are no longer sufficient lobbyist - connecting government and
politicians with business entrepreneurs.
∑ Wain Advisory enter new market in
government services to create a better nexus to
the public through analysis and research
Targeting the resourced clients is still The existing competitors target almost the same
b. Targeting accordance in the sluggish economic cohort since they will not benefit from
situation terminated contracts or late payments
∑ Clients know LSI Denny JA as the ∑ Indikator Politik posits themselves as the most
c. Positioning fastest and the most accurate survey survey conductor under Lembaga Survei
(MURI) Indonesia
∑ Poltracking claim as the most accurate
∑ The most winning rate
surveyor
PRODUCT & PRICING
a. Conventional
- Survey ∑ Survey price is almost the same ∑ Survey price is almost the same
∑ Trusted survey result ∑ Trusted survey result
∑ Higher price but reasonable due its For the existing competitors, the price of
- Assistance
reputation winning assistance is below LSI Denny JA.
∑ Herding the public opinion to change
the voters map is in high demand
b. Digital
- Survey ∑ It hasn't developed any online survey The existing customers haven't developed any
∑ It has developed a digital tool for field online surveys nor digital tool for field survey
survey
- Campaign ∑ Campaigns are made from upstream to ∑ The new competitor like Ecanvasser is a tool
downstream (Digitroops Production to create, monitor and measure the campaign
House) through digital platform.
∑ The price fixing is still vague ∑ The price fixing is clear for Hootsuite as the
monitor of digital campaigner but yet still
vague for Pereira International
∑ The measurement is still hard to be
related into their electability rate
PROMOTION
Direct marketing is still the best For existing competitors, direct marketing is
a. Conventional promotion line (individuals & political still the best promotion (individuals & political
parties) parties)
b. Media Awareness ∑ Website is too simple and some menus ∑ Website are well made
are not working
∑ News coverage is undertaken well ∑ News coverage is undertaken well
∑ Denny JA is still the center of ∑ The institutions have played a big role in
publications publications
Source: Research Study
49
Table 10. SWOT Analysis
STRENGTHS OPPORTUNITIES
∑ LSI Denny JA has high winning rate ∑ The political changes alter the behavior of
record due its specialty in change the candidates; hence the market is more
voters mapping. It has served all conical
presidential elections, all provinces, and ∑ The new competitors that are not yet enter
several party chairman elections political consulting sphere could give
∑ LSI Denny JA is well-known for its benefit to LSI Denny JA
accuracy in Survey services as the most ∑ Internet era has changed the behavior of
accurate and the fastest quick count voters and clients
WEAKNESSES THREATS
∑ The existing market segmentation will be ∑ The economic situation is sluggish: GDP
no longer sufficient and the positioning growth declines; Rupiah weaken; haggard
needs to be rejuvenated business confident
∑ LSI Denny JA has not developed any ∑ KPK's "Caught in Acts" intimidate the
tools to do big data analytics and many candidates and their financial supporters,
other advanced technologies to gauge the hence they are more sensitive to the price
digital campaign's success rate, even ∑ The existing competition is fiercer
though Digitroops has established to
handle the digital campaign sphere
Source: Research Study
As the details for this analysis is listed in these followings:
Strengths
1. The high winning rate obtained from Table 1 in Chapter namely the
aggregation of LSI Denny JA Clients. In the table, there are the total number
of clients who purchased the assistance service and the winning percentage of
those contracts.
2. The most accurate survey and the fastest quick count obtained from LSI Denny
JA’s MURI award in 2010 and already mentioned in Chapter 1, Quick Count.
Opportunities
1. The political changes alter the behavior of candidates obtained from the desk
study in Chapter 2. It is mentioned that the restrictions in new regulation set
by General Election Commissions, including the novel threshold will cause
inorganic coalition amongst political parties and lead into more political
transaction. Thereby, the market is going to be more conical.
50
2. The new competitors offer the new services that none of existing competitors
in national level have mastered it. This finding obtained in the Chapter 3. Since
they are not directly competing in the same market, it is an opportunity for LSI
Denny JA develop and adopt some relevant services with collaborating by
them.
3. The internet era has changed the behavior of voters obtained from the desk
study in Chapter 2, PESTEL Analysis. With abundant of free information and
easy access, either consumers, producers, or prosumers are more empowered
and the behavior tend to seek alternatives that can give “faster, cheaper, better”
products.
Weakness
1. The existing market segmentation will be no longer sufficient obtained from the
analysis of political candidate analysis in Chapter 2 that already changed. The
political ecosystem, especially the new restrictions and threshold entail them to
purchase the support from the political party first. The situation will harden the
discharge of any contract in the future.
2. The early development stage of digital products is mainly one of the significant
weakness. The analysis obtained from the client survey in Chapter 3, Digital
Product Satisfaction. There are 45% of the respondents less satisfied with the
social media campaign management since there is nothing new there, just
posting the contents and air them through organic and paid ads.
Threats
1. The sluggish economy situation and stricter legal situation, mainly for KPK
“Caught in the Act” handling the bribery obtained from the desk study in
Chapter 2, PESTEL Analysis. Their behavior tends to be more price aware,
while in other hand, the targeting of LSI Denny JA is always aiming for
resourceful ones. The situation will harden the discharge of any future contracts.
2. The existing competitors is getting fiercer obtained from the Chapter 2, Five
Force Model. The intensity of competition has entered the red ocean
environment, notably with the lesser clients will lead to a depression for small
players and declining top line for large players.
51
3.5. Business Initiatives
With the analysis, it can be concluded that LSI Denny JA can tackle the main
problem mainly related to Marketing 4.0, which is transforming the business
ecosystem into digital. In Bucharest’s Ted Talk, Majoritas founder— Lucian
Despoiu said that voters are digital native while politicians are digital immigrants.
If they do not understand how digital native interact, they will not be elected. The
situation of digital native in Indonesia is real, it has changed the voter behavior,
slow but sure, the politicians should adapt fast and LSI Denny JA should be the first
political consultant who can provide that.
3.5.1. Diversified Market and Digitized Products
Elections market is becoming more conical and no longer sufficient if the

behavior still the same. Private sectors and government are the best in line
diversified market to enter since LSI Denny JA has experienced to serve some of
them, it could be led by providing lobbying service that offers a strategic
partnership between private sectors and government. Meanwhile, providing new
digitized products are mainly required. Survey, analytics, and campaign using
advanced digital tools to make survey, analytics, and campaign more effective and
efficient.
1. Digitized Survey and Campaign Tool

To be one step ahead, LSI Denny JA should penetrate online survey for a
quick or tracking survey to those who need it. The respondents’ data are
obtained from WhatsApp number database that Digitroops has possessed. It
also includes survey canvas linked to intelligent map and cloud that can
accessed real-time by the campaign manager and survey supervisor. The
survey results then reviewed in offline and online with LSI Denny JA’s
competent forces.
2. Digitized Analytics Tool
The digitized analytics includes big data analysis—before, during, and after
survey conducted. With the digitized analytics, it will make easier how to
target, engage, and seize audience in the campaign.
3. Integrated Product
To cope the sluggish economic situation, LSI Denny JA should create a new
integrated product that offers a lower/cheaper price than the existing
52
customers using digitized survey data and big data analytics. It is already
known that the most expensive part of conducting survey is the cost to visit
the certain regions. With digitized survey, the cost of conventional survey
could be reduced and be more efficient.
4. Diversified Market
To cope the political changes, LSI Denny JA as one of top-of-mind and the
biggest political consultant should embrace the new market in lobbying,
market research, and government spheres. It also should be the first to seize
the new stage of research company: creating many important
index/measurements to gauge Indonesian social phenomenon, like what
Gallup Poll and Pew Research did.
3.5.2. Tech Savvy Professional
LSI Denny JA has already known for its winning accuracy and high capabilities
in changing the voters map. But when it comes to digital campaign, 55% clients are
less satisfied with the performance. By only using social media marketing and
management platform like Brand 24 and Zoho, does not make a significant impact
for client’s electability, the survey outcome also resulted that the digital campaign
cost doesn’t reduce campaign cost, that it should have done. Hence, there are two
strategy that can be performed to achieve the tech savvy professional in LSI Denny
JA’s core competence:
1. Collaborate with Digital Campaigners and Software

To compete the existing competitors, LSI Denny JA could collaborate with
the Ecanvasser and DataSift to create more values by develop some self-
made tools or purchase their services while learning to build ones. The aim
is to become the first Indonesian political consultant that is embracing
advanced political technology.
2. Train the People
Invest into their key people in digital campaign to join the certified courses
in dealing with social media management and big data analysis. This fashion
also will cut any time consumption for trial and error for the digital division
if they try to develop its own method that has not valid guaranteed.
53
3.5.3 Digital Marketing
With its high brand awareness, it is time for LSI Denny JA to get a better
CRM (Customer Relationship Management) by standing out and exhibiting its
accomplishments through:
1. LSI Denny JA should have started building an advanced website that will
give the detail about services they offer, then it should be supported by many
blog/website feeders that should be published 50-100 times per month. In
doing this, the keyword and conversation will saturate the search engine
machine, which is Google, thereby if any prospective clients or visitors who
want to know more about political consultant in Indonesia, LSI Denny JA
will be top-of-mind in the search engine optimization.
2. LSI Denny JA also should have started promoting in social media,
especially Facebook Messenger and WhatsApp since there is a new
technology namely Chatbot to convert the followers in the fan pages and
offline database into big data server. By doing this, LSI Denny will seize
big database that could be analyzed for micro-targeting purpose faster with
fewer resources, reach the right prospects more effectively, and radically
increase the conversion rates.
3. With the fiercer competitors, reviews and claims from clients are highly
needed. LSI Denny JA should promote their company not only by self-
promoting but also to create more conversations by the clients to amplify
the advocacy for people to trust and use LSI Denny JA's services. To keep
the awareness and conversation high, the company can create the inorganic
method first, like sponsored messaging, sponsored posts, and set the Google
Ad works, while in line try to amplify the conversations in organic method.
With more conversation, LSI Denny JA will have an open ticket for its new
focus market namely private sectors and government.
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CHAPTER 4
CONCLUSION AND IMPLEMENTATION PLAN
4.1. Conclusion
The main objective of this study can be answered in revisiting the research
questions and formulate the new proposed strategy for LSI Denny JA.
RQ-1
Are there any internal factors affecting the decline in the purchase action ratio?
a. Is the brand no longer fit with current segmentation, targeting, and positioning?
∑ LSI Denny JA brand is still fit the current segmentation but no longer
sufficient. It needs to expand the segmentation into private sectors and
government. As the same as targeting and positioning, LSI Denny JA brand
is still fit to the current situation.
b. Is the combination of product and pricing no longer relevant since there’s a

shifting character of the market served?
∑ For the conventional products, the clients are mostly satisfied but it is a
different story with the digital product which is less satisfactory.
Meanwhile, the pricing is still reasonable due the reputation.
c. Given some unfavorable conditions what’s the impact on sales and promotion
efforts?
∑ The Purchase Action Ratio for the last semester dropped into 22%, while in
the other hand, the Brand Awareness Ratio is still considered high (95%).
RQ-2
Are there any external factors affecting the decline in the purchase action ratio?
a. How do political system changes, sluggish economic growth, and stricter law
enforcement affect LSI Denny JA’s business?
∑ These situations change the behavior of election candidates who are the
main market of LSI Denny JA. They are more price aware, frugal, and tend
to seek other alternatives that provide the same service but in a cheaper,
55
faster, and easier fashion. This is affecting the business directly into the
business and causes many clients not be able to pay.
b. Are there any gaps between LSI Denny JA’s offerings compared to
competitors’ offerings and customers’ expectations?
∑ There are almost no gaps between LSI Denny JA with the existing
competitors like Indikator, SMRC, and Poltracking. This happens because
all the founders master the same methodology, although the ability to
analyze and strategize is a little different. In other hand, the gaps of LSI
Denny JA services are quite significant compared by the new competitors.
They bring digital services that conventional political consultants haven’t
created.
RQ-3
Is transforming into digital marketing the only solution for LSI Denny JA’s
main issue?
∑ Transforming into digital marketing is the main solution for increasing

brand awareness by creating more values (digital marketing & services) and
manage the relations with the customers easier (CRM management & cloud
server system). While the main solution is supported by the brand itself that
redefined its segmentation, targeting, and positioning.
4.2. Implementation Plan
The implementation plan consists of workable proposition with 3 main parts.

The first part composed of the details of the new products development, including
the purpose, the estimated cost, and the KPI (Key Performance Indicator) for each
program. Thereupon, the second part followed by the digital marketing program,
elaborate in how to market the new products and how to train and hire the competent
persons to run the proposed plan. The third part composed of the target
accompanied by the timeline schedule in implementing the proposed plan.
56
4.2.1. The New Products
1. Lobbying Service
a. The principle of this program is helping clients navigate the halls of power.
b. The estimated expense for this new plan is almost at zero cost due the
competence and network which has already established.
c. The key performance indicator (KPI) of this program is attain contracts and
strategic partnership from private sectors – government.
2. Online Survey
a. The principle of this program is affordable digital product that can be

accessed by clients.
b. The estimated expense for this new plan classified into two probabilities.
The first is by building the software itself, it will take approximately
IDR100-250 million and the maintenance cost will be paid annually in 10-
20% from the software manufacture. Meanwhile, the second option is to
collaborate with trusted online survey provider, like Survey Monkey which
will cost IDR3-7 million per year.
c. The key performance indicator (KPI) of this program is attain buyers from
individuals or organizations that purchase the online survey from the official
website.
3. Digitized Survey Tools
a. The principle of this program is creating, monitoring, and evaluating survey

easier.
The first is by building the software itself, it will take approximately
IDR100-250 million and the maintenance cost will be paid annually in 10-
20% from the software manufacture. The second option is to collaborate
with survey canvassing provider, like Ecanvasser which will cost IDR2-5
million per month.
c. The key performance indicator (KPI) of this program is time saving, cost
saving, and increase door-to-door’s multi effect.
57
4. Big Data Analytics
a. The principle of this program is connecting to a real-time feed of human

data, uncovers insights with sophisticated data augmentation, filtering and
classification engine, and provides the data for analysis with the appropriate
privacy protocol.
The first is by building the software itself, it will take approximately IDR1.5
billion to build an analytical database, infrastructure, and software. The cost
is not including the analysts that tackle the data. The second option is by
collaborating with big data analysis provider, like DataSift. The cost for this
option is based on the scope of data collection, which needs further
approach.
c. The key performance indicator (KPI) of this program is to eliminate the
need for time-consuming data post-processing and to reduce high cost in
research, so LSI Denny JA could focus on doing the analysis.
5. Digital Campaign
a. The principle of this program is to figure out how best to allocate resources,
so the client could get the best fee in spending money on ads, rallies, and
get-out-the vote drives.
b. LSI Denny JA has already built the ecosystem for door-to-door campaign
and the Above-the-Line publications monitoring tools. The next step is to
develop those tools to measure the impact of people reached which will cost
approximately IDR100-250 million.
c. The key performance indicator (KPI) of this program is to get individual
voters to turn out in bigger numbers, eventually leading to election victories.
4.2.2. The Digital Marketing
1. How to Market
a. The principle of this program is to manage all LSI Denny JA’s relationships
and interactions with customers and potential customers.
58
b. The estimated expense for build an advanced website and CRM system is
approximately IDR200-300 million with 10-20% maintenance cost per
year.
c. The key performance indicator (KPI) of this program is to improve business
relationships (connected to customers), increase conversation and
awareness, and improve profitability.
2. Core Competencies
a. The principle of this program is to keep and strengthen LSI Denny JA’s
sustainable competitive advantage.
b. There are two procedures to improve the social media and digital
competencies. By assigning the key persons in digital division to have
certification social media and digital expertise will cost IDR 30 million for
one person in one-month training. The second procedure is by hiring the
experts in digital sphere and at the same time learn from them, the estimated
cost will be IDR 10-15 million for one person in one-month project.
c. The key performance indicator (KPI) of this program is betterment in
productivity and contribution to the business.
4.2.3. The Target
The target of the new proposed strategy formulation is keeping brand awareness
ratio in 80-90% and increasing purchase action ratio by 1.87 in the second semester
of 2018. It means that the implementation of programs should be ready before the
presidential and legislative campaigns which are started in 23rd September 2018.
Figure 14. Target of Implementation Plan
59
4.2.3.1. The Procedure and Time Schedule
Table 11. The Procedure and Time Schedule of Implementation Plan
Scheduling
Programs Procedure Commentary
Time
NEW PRODUCTS
Effective lobbying identifies the key
decision makers, keeps the private sectors
Lobbying
a 1 informed, develops an effective political Should be avowed
Service
risk management strategy and ensures immediately after the
competitive advantages. June 28th concurrent elections. This
Create structure and support ways to 2018 program does not need much
overcome system boundaries through preparation, but a ripped
2 mutually comprehensible communication strategy
between private sectors and those who are
responsible for regulating it.
Gather and identify audiences' mobile
b Online Survey 1 After the registration of all
phone (WhatsApp) as respondent database
legislative and presidential
Specify the pricing based on respondents September
candidacies. This program
2 weighted and the amount of surveys 21st 2018
needs a longer journey to set
conducted
up
3 Put the details online in the official website
Invite volunteers and staff to local election
campaign and then assign walk-lists and
Digitized tasks. Manage door-to-door canvassing
c 1
Survey Tools remotely. Set up teams with their own
surveys and talking points.
Field operatives use the canvass to capture
information about voters including surveys, June 28th This program should be ready
2 2018 - before the legislative and
# of issues or contact info. Field data syncs
automatically to the dashboard. September presidential campaign to
Ensure all outreach is followed up by 23rd 2018 regain awareness
casework management. Create voter
3
segments based on survey responses, # of
issues or voter statuses.
Email or WhatsApp blast to segments or
4 individuals direct from the dashboard
without a need for 3rd party software.
Connect data from non-public sources like
Big Data LinkedIn to provide aggregated and
d 1
Analytics anonymized statistical data that upholds June 28th This program should be ready
consumer trusts. 2018 - before the legislative and
Connect data from public sources like September presidential campaign to
Twitter, Facebook, and news to provides 23rd 2018 regain awareness
2
historical or real-time data, feeds, or
firehoses.
Perform audience research that observe
behavior from high-value audiences to craft
Digital data-driven media plans to understand what Social Media Boosting,
e 1
Campaign types of content and creative clients most Targeting ads precisely
valuable audiences are engaging with to
shape content marketing strategies. June 28th
Performs clients’ brand management by 2018 -
analyzing what customers are thinking and September
saying in real-time about candidate/client 23rd 2018 Understand voter concerns
and their competitors. It also performs and issues on a real time
2
content optimization by compelling, basis and respond
personalized content with insights targeted appropriately to them
into audiences and behavioral traits.
60
HOW TO MARKET
Convert more anonymous visitors to the
Develop the web & soc-media with content, messaging, Based on their interests,
official website and calls-to-action personalized in real time
a 1 intent, location, organization,
and social using browsing behavior, location, and and industry
media referring URLs
Personalize web & soc-media channels June 28th Who they are, where they
based on what LSI Denny JA already know 2018 - work, and how they behave
2
about them September across the web and other
23rd 2018 channels.
Ensure the campaigns are responsive so
they look great no matter what type of
device viewed on–desktop, laptop, or
3
mobile, delivering a consistent experience
to clients and potential clients across web
and mobile.
Build/hire marketing automation that June 28th
CRM enables many modern marketing practices 2018 - Retain and extend customer
b like lead management, email marketing,
Management September relationships
landing pages, and many more 23rd 2018
CORE COMPETENCIES
The use of analytical methods and
Certified social
technology has been commonly used in
media
political campaigns but at a very
management
a individualistic level. What will make LSI
and big data
Denny JA be different is that the data input
analytics
capabilities are all integrated with June 28th
courses
integrated technology and processed teams. 2018 -
But due the short time deadline, while September
waiting for digital division to finish 23rd 2018
Collaborate/hire
training and master it, LSI Denny JA can
certified and
b do it without expensive vendor tools (e.g.
experienced
DataSift/Alto) without even any tools other
analysts
than programming languages and code
libraries.
61
REFERENCES
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64
APPENDICES
65
Appendix A1. LSI Denny JA’s Company Logo
Appendix A2. Organizational Structure of LSI Denny JA
66
Appendix A3. The Recapitulation of Provinces, Districts, and Cities
Performed Elections from 2005 - 2013
No. Election Performed Provinces Districts Cities Total

1 2005 7 174 32 213
2 2006 7 60 11 78
3 2007 6 23 12 41
4 2008-2009 12 107 35 154
5 2010 7 182 35 224
6 2011 5 71 11 87
7 2012 5 56 18 79
8 2013 14 103 33 150
Source: Indonesian Ministry of Internal Affairs
Appendix A4. Schedule of 2015 Concurrent Elections
Source: republika.co.id
67
Appendix A5. LSI Denny JA’s Potential Client Reach
Year Potential Client Reach

Direct Ads Media Press Conference
Marketing
2005 35 28 1
2006 25 4 2
2007 11 8 2
2008-2009 56 32 4
2010 98 56 3
2011 48 15 7
2012 50 12 9
2013 132 10 8
2015 220 10 10
2017 85 8 8
2018 156 10 5
Appendix A6. LSI Denny JA’s Operational Cost (in million rupiah)
JAN - JAN - JAN - JAN - JAN - JAN - JAN - JAN -

JUN JUN JUN JUN JUN JUN JUN JUN
2010 2011 2012 2013 2014 2015 2016 2017
1,499 1,038 981 937 951 1,408 1,155 679
JULI - JULI - JULI JULI JULI JULI JULI - JULI

DES DES - DES - DES - DES - DES DES - DES
2010 2011 2012 2013 2014 2015 2016 2017
1,395 1,228 1,055 1,055 1,557 1,372 1,299 862
68

Monica Anggi JR-Proposed Digital Marketing For Indonesian Political Consulting

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Monica Anggi JR-Proposed Digital Marketing For Indonesian Political Consulting

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PROPOSED DIGITAL MARKETING STRATEGY

FOR INDONESIAN POLITICAL CONSULTING:

STUDY CASE OF LINGKARAN SURVEI INDONESIA

MONICA ANGGI PUSPITA

Master of Business Administration Program

School of Business and Management

Institut Teknologi Bandung

UNTUK KONSULTAN POLITIK INDONESIA:

STUDI KASUS LINGKARAN SURVEI INDONESIA

MONICA ANGGI PUSPITA

Date of Final Examination: ……………...

Date of Graduation Ceremony: ………….

Master of Business Administration Program

Institut Teknologi Bandung, 2018

Final Project Counselor: Dr. Jacky Mussry

FOR INDONESIAN POLITICAL CONSULTING:

STUDY CASE OF LINGKARAN SURVEI INDONESIA

MONICA ANGGI PUSPITA

Date of Final Examination: ……………...

Date of Graduation Ceremony: ………….

Master of Business Administration Program

Institut Teknologi Bandung, 2018

Final Project Counselor: Dr. Jacky Mussry

Keywords: digital marketing, LSI Denny JA, political consulting, political

FOR INDONESIAN POLITICAL CONSULTING:

STUDY CASE OF LINGKARAN SURVEI INDONESIA

MONICA ANGGI PUSPITA

Master of Business Administration Program

Dr. Jacky Mussry

Alhamdulillahirabbil’alamin. I will always present my first gratitude to the God

This final project will not be accomplished without my fiancé’s endless

In this opportunity, I would thank MarkPlus, Inc., Mr. Hermawan Kartajaya

Jakarta, July 2018

Monica Anggi Puspita

Figure 1. LSI Denny JA’s PAR in 2018 …………………………………. 12

Table 1. The Aggregation of LSI Denny JA Clients …………………….. 8

Appendix A1. LSI Denny JA’s Company Logo …………………………. 66

Indonesia has a presidential system with a bicameral parliament. The

Afterwards, Lembaga Survei Indonesia emerged in September 17, 2003 as the

LSI Denny JA commenced the proliferation of political consultants in

The behavior changes of audience using internet, changes how politicians to

As a survey institution, LSI Denny JA assists political parties and candidates in

a. Lingkaran Survei Indonesia, Ltd.

1.2.1. Political Consulting

The emergence of political consultants cannot be separated from political

1.2.2. Quick Count

a. Most accurate in performing quick count in Sumbawa Regency (November

1.2.3. Public Opinion Maker

1.3. Business Performance

Table 1. The Aggregation of LSI Denny JA Clients

1.4. Problem Statement

For political consultant, brand awareness is very important in the fiercer

Table 2. LSI Denny JA’s Purchase Action Ratio

MARKET SHARE BRAND AWARENESS

Declining sales and increasing costs

Declining Market Share

Figure 1. LSI Denny JA’s PAR in 2018

1.5. Research Questions

a. Is the brand no longer fit with current segmentation, targeting, and

a. How do political system changes, sluggish economic growth, and stricter

1.6. Research Objectives

a. To analyze how political system changes, sluggish economic growth, and

To answer whether transforming into digital marketing is considered one of the