American Journal of Economic and

Management Business

p-ISSN: XXXX-XXXX

e-ISSN: 2835-5199

Vol. 3 No. 3 March 2024

Shopping Center Marketing Strategy in Increasing Visitor Traffic in

Manokwari City Mall

Susi Wonggor, Febianus Heaetubun

STIE Mah-Esia Manokwari, Indonesia

Email: [email protected], [email protected]

Abstract

This research aims to analyze marketing strategies in increasing visitor traffic at the

Manokwari City Mall Shopping Center as one of the well-known shopping centers in

Manokwari Regency. The formulation of the problem in this research is what the

marketing strategy is at the City Mall shopping center in Manokwari City and what is the

company's SWOT analysis. This research is field research using descriptive qualitative

methods and SWOT (Strength, Weakness, Opportunities, Threat) analysis as a tool for

identifying the company's internal and external environment. In this research, researchers

made observations, then collected data through in-depth interviews with managers and

the company's marketing division, as well as documentation to support the research. The

research results show that Manokwari City Mall has shown success in increasing visitor

traffic, although this increase is not of great value, it is able to provide changes at a better

level than the previous year. From the results of the SWOT analysis diagram, it shows

that the company is in the SO area, meaning that Manokwari City Mall in carrying out its

marketing must be aggressive by taking advantage of existing opportunities and strengths.

This aggressive strategy includes carrying out maximum and creative promotions,

establishing new collaborations with investors and tenants, or utilizing technology and

the environment as marketing support tools. Apart from that, the provision of events and

outreach to the community must always be improved so that more and more people visit

Manokwari City Mall.

Keywords: Marketing Strategy, City Mall, Visitor Traffic.

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0

International

INTRODUCTION

The development of the industrial world today has entered a new era known as the

industrial era 4.0 (Yusuf et al., 2022). The world of trade business is growing very rapidly,

as well as in Indonesia. The fact that various trading companies have been established

indicates the high future potential of the trading company's business. One of them is a

trading company in Malls which is currently growing rapidly in the last decade, located

on Jalan Yos Sudarso Manokwari, West Papua Province.

Judging from these developments, Manokwari Regency also does not stand still and

already has a shopping center that began operating in April 2021, with a land area of 6000

American Journal of Economic and Management Business

Vol. 3 No. 3 March 2024

square meters. Manokwari City Mall (MCM) is the first mall in Manokwari, the capital

city of West Papua Province. With the presence of shopping centers in Manokwari City,

it provides opportunities for local entrepreneurs and retailers to develop their businesses,

and the more and more famous brands that fill the stands in the shopping center, the more

the image of the shopping center will be lifted. The construction of this shopping center

in Manokwari Regency marks a step forward in the development of the local economy.

The shopping center industry is one of the national industries that plays an important role

in the Indonesian economy.

Manokwari Regency which is the capital of West Papua province continues to

develop and improve itself day by day. As the capital of a developing province,

Manokwari certainly has its own charm. As time goes by development continues to

increase, as well as economic growth and population with many migrants from outside

who come to try their luck in this district. Over time, development is no longer centered

in the district center but is focused on the periphery where the provincial government

center is built. Of course, this has caused population mobilization to and from the

periphery to increase. To support the smooth running of these activities, of course, it is

inseparable from the important role of adequate transportation facilities to help the

movement of people from one region to another.

The area of Manokwari Regency is 8,664.76 km2 (8.93%) outside West Papua

Province 97,024.27 km2. Manokwari Regency is the district with the largest number of

sub-districts and villages. There are 29 sub-districts, while there are 421 villages/villages.

This is based on the composition list of the number of sub-districts and villages. The

population of Manokwari Regency is 150,179 people, and this number is a potential

customer who is expected to become visitors and potential customers at Manokwari City

Mall.

The growth of the retail industry fell -3% in the second quarter of 2020, impacting

on the development of retail and shopping centers and optimization of outlet functions.

Evidence of the decline in people's purchasing power is reflected in the inflation rates of

0.78% and 0.82% respectively from May to June 2020. Revenue in the retail industry is

reduced due to additional costs such as lack of electricity subsidies for retailers, as well

as slight pressure on retail entrepreneurs (Yunianto et al., 2020). However, in the second

half of 2021, it began to show improvements reflecting the performance of the retail

sector. Signs of a shopping mall return in 2022 can also be seen as developers move

forward with various semi-finished shopping center projects to avoid heavy losses next

year. This is due to the implementation of government regulations and value-added tax

(VAT) incentives to support retail leasing transactions. In general, a total of around 250

malls across Indonesia are currently facing very difficult disruptions (Febrianti &

Komarudin, 2023)

The existence of many malls today will certainly cause fierce competition in this

sector to maintain the continuity of the company, as well as to attract visitors and target

groups to visit, trade, and revitalize the mall. The magnitude of business challenges in the

face of economic changes and competition between competitors does not prevent

shopping centers from being abandoned. All existing elements of an organization's

resources must be strategically aligned to achieve business goals. This is in line with the

concept of marketing strategies to achieve company goals, one of which is to encourage

visitors to visit the mall every day, especially on holidays.

Mall or commonly called mall is a place designed with contemporary and modern

concepts. Shopping malls include supermarkets, online/timezone games, bookstores,

Susi Wonggor, Febianus Heaetubun

record stores, clothing stores, cafeterias/coffee shops, and stationery stores (office

supplies), electronic counters, supported by one or more department stores surrounded by

large parking lots. The function of the mall itself is the same as a traditional market in a

remote area, where traders and buyers meet to make buying and selling transactions. The

only difference is that malls have a certain attraction to attract the attention of visitors as

modern shopping (Al-Hamdi, 2009). Currently, business competition in the world of trade

is getting stronger, as well as what happened in Manokwari City. Therefore, every

shopping center must be able to anticipate increasingly open market competition by

maximizing the right marketing strategy to attract consumers to visit the shopping center

so that the intensity of visitors increases.

Marketing strategy is a marketing mindset that will be used by business units to

achieve their goals. Marketing strategy also determines the target market and marketing

mix (Setyorini, 2016). Developing a strategy is the first step in achieving a set goal. A

marketing strategy is able to describe the sequence of activities to achieve a

predetermined goal, this sequence of activities is certainly the result of a policy that

becomes the rules that will be used within a certain period of time (Ratnawati & Susena,

2017). With the right and appropriate marketing strategy, the product will be easily

accepted by potential customers so that potential customers buy the product to be sold. In

addition to marketing strategies, companies need to know the position of the products

sold. The position here shows a comparison of market share and market growth from

competitors of similar products from other companies (Pratama & Bahiroh, 2023).

Visitors are the most important part of the presence of the shopping center and are

very influential for the progress of the shopping center. If visitors who come every day

increase, the shopping center will grow well and will be better recognized by many

people. And it will certainly affect the level of sales. Conversely, if visitors who come are

less than the expected percentage, it results in a lack of sales levels and public awareness

of the presence of the shopping center.

The Manokwari City Mall shopping center has been present since April 2021,

where it is very noticeable that the level of visitors who come is not much. It is quite easy

to realize because this shopping center has not been established for a long time so that

some people do not know and know this Mall. For this reason, marketing strategies need

to be carried out continuously by the management of Manokwari City Mall. Several

factors have resulted in the lack of visitors and the disinterest of some competitors to

cooperate with Manokwari City Mall, namely due to the low regional income factor

because many people in Manokwari Regency work as family workers / unpaid workers,

try to be assisted by irregular workers themselves, or become a worker/employee.

There is still a public perception that shopping at shopping centers such as

Manokwari City Mall will definitely be subject to high taxes without negotiable prices

such as in markets or traditional retail, another assumption is that some people estimate

that the quality of goods sold at Manokwari City Mall is almost the same quality as those

sold in markets or traditional retail. In addition, people who live outside Manokwari City

are also less interested in coming considering the long journey that must be taken to go

to Manokwari City Mall. Although promotions carried out such as organizing events

every month, word-of-mouth marketing and promotion through social media have been

carried out, until now the number of visitors who come from year to year, experience

traffic up and down.

Seeing the development of business in the modernization era, Manokwari City Mall

must consider the right marketing strategy so that visitor traffic will be more crowded.

American Journal of Economic and Management Business

Vol. 3 No. 3 March 2024

Marketing strategy is very important to be implemented by the management of

Manokwari City Mall, in order to continue to attract consumer purchasing power and

keep consumers visiting and always create ideas by underpinning a combination of

offensive and defensive strategies. With conditions like this, an effective and efficient

marketing strategy is needed by Manokwari City Mall to determine market positioning in

order to compete with similar companies. In addition, an effective marketing strategy will

bring Manokwari City Mall to be able to compete and increase visitors so as to achieve

the expected target.

RESEARCH METHODS

The research conducted includes field research, which is qualitative research that

tests rationality, and theoretical test analysis to prove the truth of applicable theories.

Researchers describe their results using qualitative descriptive methods, a form of

research conducted through case studies that focus on specific entities (Bungin, 2013).

Data collection techniques are the main step of research to obtain data that is in

accordance with established data standards. According to Catherine Marshall, Gretchen

B. Rossman (Sugiyono, 2020). that in qualitative research, data collection takes place in

natural conditions, primary data sources, and data collection techniques mainly lie in

observation (participant observation), in-depth interview (in depth interview), and

documentation. then analyzed qualitatively using the inductive thinking method, which

is a thinking method based on specific facts, then investigated so that general problem

solving is found (Komarudin & Hidayat, 2018).

RESULT AND DISCUSSION

Analysis of Manokwari City Mall Marketing Strategy in Increasing Visitor Traffic

The success of a company in achieving its goals is greatly influenced by the

company's ability to market its products. The company's goal is to ensure survival,

development and competition, which is only possible if the company can sell its products

at affordable prices, in expected volumes and survive competitors' challenges in

marketing (Hulu et al., 2021).

The marketing strategy carried out by the Manokwari City Mall shopping center in

marketing its products is by applying market segmentation (segmentation), target market

determination strategy (targetting), and market positioning strategy (positioning).

Marketing segmentation carried out by Citimall Kuala Kapuas is the entire community

which is open to general audiences of various classes, genders, and ages seen from

demographic variables and according to visitor behavior. While the target is seen from

the level of demand and market growth, segment attractiveness, and possible company

targets and resources. As for the market position strategy, Manokwari City Mall positions

its company as a shopping center whose function is still the same as the traditional market,

namely a meeting place for traders and buyers to make buying and selling transactions

but by creating a certain attraction to attract the attention of visitors with modern

standards. In addition, in marketing its products, Manokwari City Mall applies a

marketing mix, namely Product Strategy, Price Strategy, Place Strategy, Promotion

Strategy.

The marketing strategy that has been carried out by Manokwari City Mall has

shown success in increasing visitor traffic, although the increase is not of great value but

is able to provide changes at a better rate than the previous year. For this reason, new and

creative strategies are needed so that marketing is more effective and efficient. Which

Susi Wonggor, Febianus Heaetubun

will not only affect the attractiveness of visitors, but also the growth of the mall for the

better. Such as promoting optimally and creatively, conducting new collaborations with

investors and tenants, or utilizing technology and the environment as a means of

supporting marketing. In addition, the provision of events and socialization to the

community must be increased so that more people visit Citimall Kuala Kapuas. In

marketing its products, Manokwari City Mall applies the following marketing mix:

Product Strategy

A product is anything that can be offered to the market to satisfy a consumer's wants

or needs. Products can be in the form of goods or services aimed at the target market

(Lestari et al., 2019). The products offered by Manokwari City Mall with 5 floors are

places to market community businesses such as tenants provided with adequate locations

and also provided with facilities that support tenants to do business. Various kinds of local

and national brands that fill the tenants at Manokwari City Mall include: :

Table 1. Tenan in Manokwari City Mall

Product Type

Product/Brand Name

Fashion &

Optik

Optik Melawai, Missisipi,Celcius, Borobudur, Queensland,

Flies,Bata, Urban Surf, Les Femmers, BrunBrun, Naugthy, Les

Femmes

Groceries

Hadi Supermarket, H’TOYS, Borobudur Dept. Store

Accessories

Sistersell, Naughty, Mr.DIY,Miniso

Entertainmant

StudioXXI,Funstation

Food &

Bar/Res

Torang Kofie Resto, Solaria Restourant,Bakso Lapangan

Tembak, KFC, Torang Kofie Cafe

Elektronik

Huntting

Apotik

Apotik Jivaka

Source: Secondary Data,Processed,2024

Price Strategy

Price or price is an amount of money that has an exchange rate to benefit from

owning or using a product or service. Price is a flexible marketing mix where a price will

be stable within a certain period of time, but in an instant the price can increase or decrease

in revenue from sales (Rusmadi, 2016). In fact, Manokwari City Mall in determining

prices is able to handle it well, because the management of Manokwari City Mall has a

strategy in determining tenant rental prices based on the advantages of providing better

places and facilities compared to its competitors. With an affordable rental or profit-

sharing system. In addition, Manokwari City Mall offers a daily rental fee of Rp. 50.000,-

for 1 m² and a monthly fee that varies from Rp. 2.000.000,- to Rp. 3.000.000,- with a size

of 6 m². Even the management of Manokwari City Mall is also willing if tenants want to

negotiate prices again. However, if you are interested in the profit sharing system,

Manokwari City Mall will receive 30% of gross or non-operational revenue and utilities

(Interview with Marketing Division of Manokwari City Mall, January 2024). With that

way, Manokwari City Mall certainly makes shopping lovers more interested in shopping.

Place Strategy

Place is a variety of activities carried out by companies to make products easily

available and available to target consumers. Place becomes a very important strategy.

Manokwari City Mall is located in a strategic place on Jalan Yos Sudarso Manokwari

West Papua Province, is a crossing route between sub-districts. The Manokwari Cuty

Mall building consists of 5 floors, 2 basement floors for vehicle parking and 3 floors for

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Vol. 3 No. 3 March 2024

commercial shopping areas, accompanied by various adequate facilities. In addition, it

has a large parking lot, prayer room, toilet, and has a special atrium for organizing events.

In this strategy, Manokwari City Mall has advantages because the location arrangement

is easy to reach, neat, clean, and makes visitors feel comfortable and at home.

Promotion Strategy

Promotion is an activity that a company carries out to communicate and promote it

to the target market (Bondarenko et al., 2021). The purpose of promotion is to provide

information about products or services, increase and stabilize sales, position products and

form an audience image. Promotion carried out by Manokwari City Mall such as,

advertising where advertising is the promotion of ideas, goods, services or places through

media or non-media channels to influence consumers. Advertising is carried out on

various media such as banners, billboards, billboards, pennants, pylon signs, and radio.

In addition, Manokwari City Mall promotions are also carried out through social media

such as Facebook and Instagram. The implementation of events or bazaars carried out by

tenants is always held every month. There are also rental price promotions offered such

as special prices for tenants who remain loyal and survive in Manokwari City Mall.

Analisis SWOT

SWOT analysis is a strategic planning method used to evaluate strengths,

weaknesses, opportunities, and threats in an educational institution (Hayati & Afrizawati,

2023) :

Identification using SWOT Analysis at Manokwari City Mall is as follows:

1. Strength

a. Price

The prices offered by Manokwari City Mall to tenants are very diverse and

affordable, from the analysis on the previous 4P marketing mix it is said that the

system can be done both rent and profit sharing. With a fairly cheap rental price and

adequate facilities provided, this will certainly make tenants feel comfortable and

will not be burdened with rental costs if they choose a profit-sharing system where

business owners and malls both benefit.

b. Clean and Spacious Place

Manokwari City Mall building with 5 floors of building accompanied by

various adequate facilities. In addition, it has a large parking lot, prayer room, toilet,

and has a special atrium for organizing events. Manokwari City Mall has

advantages because the location arrangement is very affordable, neat, clean, and

makes visitors feel comfortable and at home.

c. Brand

As we know that Manokwari City Mall is a subsidiary of NWP Retail, which

is the largest and fastest growing shopping center manager in Indonesia as we know

there are more than 20 malls that have been built throughout Indonesia. NWP is

also the buyer of two Lippo malls amounting to 1.28 T, namely Pejaten Village and

Binjai Supermall. With this brand, people will easily find and know the legality of

this company as well as being an added value for Manokwari City Mall which is a

large company.

d. Building and Facility Conditions

The Manokwari City Mall building which operated on April 2, 2021 stands

strong and magnificent today. The management of Manokwari City Mall always

Susi Wonggor, Febianus Heaetubun

supervises the structure of buildings and other facilities that experience problems.

For this reason, visits from the center are always routinely carried out in order to

minimize

Obstacles that will one day occur. With a neatly arranged store layout, it can

attract visitors to transact. Various facilities provided such as spacious and

organized parking, air conditioning, elevators, escalators, toilets, prayer rooms,

cheap and safe parking fees, and of course not jammed. This is so that visitors feel

comfortable in shopping.

e. Pelayanan yang Ramah dan Cepat

The management of Manokwari City Mall always conducts treatment or

training and education so that employees are trained to behave professionally in

their fields. For this reason, service must also always be improved so that visitors

feel satisfied and comfortable

f. Reward untuk Penyewa Loyal

Manokwari City Mall always gives rewards or gifts to tenants who always

survive and maintain their cooperation, such as laying the front tenant location so

that it immediately gets the attention of visitors, or giving bazaar free to tenants, as

well as giving parcels/hampers.

2. Weakness

a. Lack of Entertainment

In addition to game rides, places to relax, and karaoke, visitors also want

entertainment that can make them interested in lingering in the mall, such as the

existence of a cinema as a place to relax the mind or just enjoy a movie show.

b. Mall Tourist Destinations

Although Manokwari City Mall offers a variety of choices such as culinary

and shopping, it is not enough especially young people and women who like fashion

certainly want other choices such as cosmetic stores and salons/barbershops to

support people's lifestyles

c. Lack of Reputable Brands

As can be seen, well-known and well-known brands are still minimally found,

which also affects the interest of visitors to come and shop. Such as shoes, bags,

hats, hijabs, jewelry, gadgets, laptops, or other electronic devices

d. Sumber Daya Manusia

For this reason, a very qualified marketing strategy and human resources who

are proficient in their respective fields are needed to manage well, such as one of

the things needed is marketing communication staff who specifically take care of

marketing communications to the general public so that they are more widely

known by the public and have an impact on tenants and investors to be interested

in working together

e. Promosi

The marketing carried out through promotional steps has been implemented

and there are visible changes. Promotions by Manokwari City Mall will always be

carried out so that visitors are always crowded and profit income also increases.

With continuous promotion, of course, the costs incurred are also not small and

affect the promotion used

f. Finance

The budget will be an obstacle for the company, in addition to hampering the

marketing process as well as supporting other facilities that require renewal.

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Vol. 3 No. 3 March 2024

3. Opportunities

a. Strategic Location

It is a factor that determines the success rate of a company as in the selection

of the location for the establishment of Manokwari City Mall. The location is very

supportive of the development of the company because the place is close to the

scope of the community and entrepreneurs who have businesses in other fields such

as housing complexes, schools, dealerships, and hotels. Have adequate road access

and not congested. That way people outside the area can visit Manokwari City Mall

either shopping or just recreation.

b. Technology Utilization

The development of technology today is very helpful in the growth of a

business, because technology now forces all people to be able to operate it so as not

to be outdated. This also applies to marketing so that company management is more

professional and can make maximum use of it, one of which is social media

c. Strengthen Collaboration

By doing new collaborations with several networks such as cinemas and

travel services. This needs to be done seeing that film opportunities are now starting

to be active again and tourists outside the region who do not know and have never

visited Manokwari City Mall are helped by travel services that always carry

passengers. In addition, establishing cooperation with well-known brands also

needs to be done so that visitors are more interested in coming to Manokwari City

Mall.

d. Event Procurement

Event procurement is intended to help companies to attract visitors and

customers. In addition, it can reach a wider target. For this reason, events are needed

and must be maximized. Procurement must be done as often as possible so that

more and more people visit and are interested in shopping

e. Public Relations

The management of Manokwari City Mall always conducts socialization to

the surrounding community which is expected to make this persuasive

communication will make people more confident and not worried about coming to

visit Manokwari City Mall.

f. One of the city's icons

In addition to some of the tours offered by Kuala Kapuas City, Manokwari

City Mall may be an interesting destination to visit for local and national tourists.

Because it is the only mall in Manokwari Regency, of course, it can be a pride for

Manokwari City to have a very large and luxurious mall.

4. Ancaman (Threats)

a. Pesaing

Competitors are one of the threats to the sustainability of the company. If

these competitors are more able to provide good services such as product quality

and affordable prices, of course this will greatly affect the sustainability of the

company. In addition, the existence of substitute locations such as traditional

markets is one location that is often the choice of the community, seeing the

conditions there are much more crowded and many buyers are arriving. This is what

might be a threat to shopping centers considering that if you open a stall in the

Susi Wonggor, Febianus Heaetubun

market, it will not be a problem with renting a place or can more easily blend in

with other entrepreneurs or buyers.

b. Promotions from Other Better Companies

As for the tempting promotion, it will certainly make other tenants reconsider

cooperation. Likewise, visitors who come, will choose relatively cheaper prices

c. Krisis Global

When the Covid-19 pandemic hit Indonesia, it became the cause of the global

economic crisis which had an impact on scarcity and rising prices of goods. This

affects the increase in UN tariffs and so do the goods sold in tenants.

d. Government Regulations and Policies

Changes in regulations and policies from the government are one of the

threats if planning and preparation are not carried out in facing difficult times and

other obstacles that affect company growth. It will have a big impact on Manokwari

City Mall in addition to strict rules that make tenants choose to terminate

cooperation as well as bankruptcy caused

e. Social Beliefs and Attitudes

Until now there are still a handful of people who think that prices in malls are

more expensive than prices in traditional markets. In addition, the attitude of the

businessman's concern about the income obtained due to few visitors has an impact

on declining sales and worry about having difficulty paying the rental fee.

f. Lack of Local Government Support

The government has a strategic role in improving people's welfare, as well as

in economic development. One of them is in the form of support in efforts to

improve the quality of public services. With the presence of Manokwari City Mall

as the only shopping center in Manokwari Regency, it is hoped that it will be able

to help MSME players and regional development. In addition, it also helps local

entrepreneurs who are trying in Manokwari City Mall. This is one of the steps to

realize growth in the regional trade sector. The communication to relatives, fellow

officials and the public is an effort to introduce Manokwari City Mall to the wider

community. And provide government-owned technology facilities as a medium to

promote tourist destinations in Manokwari Regency, one of which is Manokwari

City Mall. The lack of government support not only affects the development of the

region but also the company itself. This will be a threat to the company because

support is a motivation for the company to be more active in providing quality

services. With strong support and mutual synergy, the government and Manokwari

City Mall are helped by each other. Manokwari City Mall will be widely recognized

by the wider community and people's purchasing power will increase, the economy

of Manokwari Regency will be more advanced with many migrants outside the area

who want to travel in Manpkwari Regency and its surroundings.

CONCLUSION

Maqashid Shari'ah-based business ethics encompasses the integration of moral

values and Islamic principles into business practices, becoming increasingly important in

modern business. Maqashid Shari'ah provides a comprehensive framework with the

primary objective of nurturing religion, life, property, reason, and posterity, guiding

business practitioners to conduct business with justice, honesty, and social responsibility.

By adhering to the principles of Maqashid Shari'ah, businesses can create a sustainable

environment, build a strong reputation, avoid practices that are contrary to Islamic values,

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Vol. 3 No. 3 March 2024

and have a positive impact on society, all in line with larger social and moral goals. Thus,

to achieve business sustainability and general welfare, it is highly recommended to

integrate the principles of Maqashid Shari'ah into business practices, involving the

application of business ethics based on Islamic values such as justice, honesty, social

responsibility, and environmental protection. By understanding and applying the concept

of Maqashid Shari'ah, businesses can create a positive impact on society, build a strong

reputation, and ensure that their operations conform to moral and social principles that

promote economic sustainability and general welfare.

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First publication right:

AJEMB – American Journal of Economic and Management Business