MARKETING STRATEGY INTEGRATED BY VALUE CHAIN ANALYSIS IN KAMPUNG BATIK GIRILOYO, BANTUL REGENCY, YOGYAKARTA

Abstract

Kampung Batik Giriloyo is one of the largest traditional batik centers in Indonesia, located in the Special Region of Yogyakarta. The conversion rate of visitors who purchase products has decreased, causing a decrease in batik sales. From 2023 to 2024, Kampung Batik Giriloyo recorded a 0.50% decrease. This indicates a gap between customer expectations and the dynamic market behavior. This study aims to design a marketing strategy that is expected to increase the sales conversion of Kampung Batik Giriloyo products. This marketing strategy strengthens the role of the community and increases competitiveness. This research methodology uses an integrated analytical framework: Value Chain Analysis (VCA), the KANO model, Activity-Based Costing (ABC), and Material Flow Analysis (MFA). VCA assesses service activities as the primary source of differentiation. The KANO model shows that price is a Must-Have Quality. The most productive approach to combining findings is to position Kampung Batik Giriloyo within the 8Ps of the Marketing Mix. The proposed marketing strategy requires improvements in operations and enhancement of the community's cultural values. The key points are that service differentiation, fair pricing, and ecological heritage branding are key components that positively impact conversion rates. The integration of cultural value creation and focused marketing practices allows this research to position its role in marketing strategy and cultural economics, thus contributing to both theoretical and practical aspects.

Keywords:
marketing strategy, value chain identification, KANO model, 8P marketing mix