THE ANALYSIS OF PRODUCT AND PRICE STRATEGY TO MAINTAIN THE MARKET SHARE UPON PT. TELKOMSEL, TBK CENTRAL JAVA AND PARTICULAR ADMINISTRATIVE OF YOGYAKARTA DIVRE

Abstract

PT. Telkomsel, Tbk is a cellular telecommunication service company and the biggest cellular company in Indonesia. It could be recognize upon the costumer number achievement of 23,5 million people in the end of 2005. The number was considered relatively big according to the cellular card user in Indonesia that was about 45 million people; it means that, if it was compared to others, PT. Telkomsel, Tbk had the biggest market share that was more than 50%. Nevertheless, the prior number had not fulfilled the costumer target arranged by PT. Telkomsel, Tbk for about 25 million people. A lot of recent competitors that entered the cellular industry have PT. Telkomsel, Tbk manage areliable, well-controlled, accurate and flexible strategy fixed with the business environment. The purpose of the research was to analyze the price and product strategy used by PT. Telkomsel, Tbk to maintain the market share. The research used descriptive analysis research type, which describes the research subject or object at the present or the particular social symptoms based on the risen or the present facts clearly and completely. From the collected data, it would be analyzed qualitatively. The research results show that: first, the product strategy used by PT. Telkomsel, Tbk was diversification strategy that was used to locating and developing new product or new market or even both of them in order to complete the development, selling increase, profitability and flexibility. Second, in the price fitting, PT. Telkomsel, Tbk used two different strategies for every each product, such as skimming pricing for HALO and simPATI card product, and penetration pricing for As card product. Skimming pricing is a strategy to complete bigger market share, and to protect the coming of competitors. From the research, it could be found that product strategy used by PT. Telkomsel, Tbk, which was diversification strategy, had weakness, which was easy imitating. Thus, PT. Telkomsel, Tbk has to re-evaluate the being-used strategy. A product has to have unique characteristic so that differed from others. With the unique characteristic, there is a big expectation to create a good image upon the product as the particular and the company as the general so that the purpose of the research to maintain the market share could be completed.