International Journal of Human Capital Management, Vol. 6 (2), December 2022 41 | P a g e International Journal of Human Capital Available online at Management http://journal.unj.ac.id/unj/index.php/ijhcm E-ISSN 2580-9164 Vol. 6, No. 2, December 2022, p 41-55 THE IMPORTANCE OF SERVICE ELEMENTS IN RETAIL BUSINESS: A CASE STUDY OF TOKO DELIMA Verron Saputra Sekolah Tinggi Manajemen PPM Email: verronsaputraa@gmail.com Aprihatiningrum Hidayati* Sekolah Tinggi Manajemen PPM Email: apri.hidayati@gmail.com *Corresponding Author ABSTRACT This study aims to find out how the external and internal marketing strategic issues of Toko Delima, How is the internal and external analysis of Toko Delima and how is the recommendation of Toko Delima's marketing strategy for 2023. This type of research is a qualitative research with interview data collection methods conducted on Toko Delima owners, Toko Delima consumers and competitor’s store consumers, observation of competitors and documentation studies with secondary data related to Toko Delima. The data analysis method used in this research is by using qualitative analysis methods. The results of this study indicate that in the future Toko Delima will experience changes in STP and its marketing mix, namely in the aspects of price, place and promotion strategies. There is an addition to the service elements of Toko Delima, so that previously using 4P will become 7P. Toko Delima's marketing strategy recommendations for 2023 are promoting using social media namely Instagram, increasing store convenience, adding online sales channels, adding types of promotions and changing product pricing. The results of this study are expected to have a positive impact on the development of science and business in the field of management, especially how to design a marketing strategy. Keywords: Strategy, Marketing. Received: 31 October 2022 Accepted: 28 November 2022 Publish: December 2022 How to Cite: Saputra, V., & Hidayati, A (2022). The Importance of Service Elements in Retail Business: A Case Study of Toko Delima. International Journal of Human Capital Management, 6 (2), 41- 55. https://doi.org/10.21009/IJHCM.06.02.4 http://journal.unj.ac.id/unj/index.php/ International Journal of Human Capital Management, Vol. 6 (2), December 2022 42 | P a g e INTRODUCTION Fast Moving Consumer Goods company or FMCG is a company engaged in consumer products and has a fast movement. The movement is fairly fast because FMCG is a product that is often purchased and consumed by consumers because the price is relatively low so that the product sells quickly. There are various categories of FMCG products, which are usually items that are needed daily such as packaged food and beverages, cosmetics, toiletries, stationery and so on. In the last four years, the population in Indonesia is increasing every year. This condition has a positive impact on the FMCG industry which makes the demand for FMCG products continue to grow every year, so it can also be interpreted that the business prospects in the FMCG industry are very promising in the future. This is certainly beneficial for businesses engaged in FMCG, one of which is Micro, Small and Medium Enterprises or MSMEs. MSMEs that sell daily necessities are familiar and can be found anywhere, from those selling in physical stores to digital platforms, so many people rely on MSMEs as providers of their daily needs such as to buy food, drinks, equipment. toiletries, kitchen materials, stationery and so on. Currently the number of MSMEs is increasing so that they have an important role for the Indonesian economy, therefore the government helps MSMEs in Indonesia through various efforts. In addition to assistance from the government, the current digital era also makes it easier for MSMEs to develop their businesses, both those that are already running, and those that will be created. Therefore, MSMEs in Indonesia have good prospects in the future. Although it has good prospects, the FMCG industry also has its own challenges. The products of the FMCG business mostly only have a small profit margin so that the players in this industry must be able to sell as many products as possible, as quickly and efficiently as possible. The current digital era also presents new challenges for players in the FMCG industry, namely the emergence of many new competitors in online sales channels, from websites to existing marketplace platforms. Even for businesses that want to switch to digital sales channels, which are currently quite popular, this is not something that can be done easily. The challenges that exist in the FMCG industry require players in the industry, one of which is MSMEs to have the right marketing strategy. Marketing strategy is the marketing logic by which companies hope to create customer value and achieve profitable relationships with customers (Kotler & Armstrong, 2016). According to Perreault, Cannon and McCarthy (2021), marketing strategy determines the target market and the marketing mix that will be offered by the company to provide superior customer value to the target market. The company conducts marketing analysis, planning, implementation and control to find the best marketing strategy and marketing mix, so that the company can observe and adapt to the existing market environment (Kotler & Armstrong, 2016). Trading business or UD is a business entity that is managed independently and does not need a partner in its business. In addition, in the eyes of the law, there is no separation of wealth or responsibility between UD and its owners. Toko Delima, which is located on Jalan Prajurit Siaman A9-10, Probolinggo, East Java, is a trading business or UD which is engaged in FMCG and based on PP UMKM is included in small businesses. Toko Delima sells daily necessities such as cooking oil, packaged drinks, rice, sugar and so on. Toko Delima, which has been established since 1992, currently sells its products offline and online with its marketing still being done traditionally. Toko Delima’s revenue continues to decline every year from 2017 to 2021. One of the reasons is the Covid-19 pandemic in Indonesia that has made Toko Delima less competitive with its competitors who have used technology to manage their business, especially in the marketing aspect, such as selling and promoting their products by online. Another thing is the marketing strategy of Toko Delima which is relatively the same from year to year or is not updated, so that it is getting left behind or unable to compete with its competitors. International Journal of Human Capital Management, Vol. 6 (2), December 2022 43 | P a g e Seeing the potential that exists in the FMCG industry, Toko Delima should be able to take advantage of existing opportunities so that the business it runs continues to be profitable. Seeing the revenue from Toko Delima shows that there are problems that Toko Delima has. One of the things that Toko Delima can do to fix existing problems is to create and implement the right marketing strategy, so that apart from increasing sales, Toko Delima can also compete with its competitors and remain a relevant business in the future. The purpose of this research is to identify strategic issues of external and internal marketing of Toko Delima, identify external and internal analysis of Toko Delima and identify recommendations of Toko Delima marketing strategy for 2023. The limitation or scope of the discussion in this study is limited only to the development of marketing strategies for Toko Delima. The development of marketing strategies and their implementation is only limited to 2023. This research is also limited to the consumer market. METHODOLOGY The type of research approach that the author will use is a qualitative approach. In this study the author will try to produce descriptive data. This study uses primary data obtained through observation and interviews. Researchers also use secondary data obtained through documentation studies. Several data collection methods that will be used in this study are: 1. Interview Researchers will conduct interviews with the owner of Toko Delima to obtain the required data, namely STP and Toko Delima's marketing mix. The researcher also conducted interviews with Toko Delima consumers and competitors' shop consumers to analyze the Customer Decision Making Process. Researchers conducted unstructured interviews, in which researchers did not use interview guidelines that were arranged systematically and completely for data collection 2. Observation Researchers observed competitors from Toko Delima to obtain the data needed to conduct Competitor Analysis. This study uses a type of participatory observation in which the researcher will make observations and be directly involved in what is being observed, so that researchers get a clear picture of what is being observed 3. Documentation Study Researchers use secondary data related to Toko Delima, namely articles, to conduct PESTEL analysis The data analysis method used in this study is by using qualitative analysis methods by reducing data, presenting data and drawing conclusions. RESULT AND DISCUSSION PESTEL Analysis PESTEL analysis is an analysis to determine the external environment of marketing seen from political, economic, social, technological, ecological and legal factors. The purpose of the analysis using PESTEL is to be able to find out whether information in the form of facts tends to become an opportunity or a threat. International Journal of Human Capital Management, Vol. 6 (2), December 2022 44 | P a g e Table 1 PESTEL Analysis Factor Information Trend O / T Source Politic The government assesses that the COVID-19 pandemic has begun to be controlled in Indonesia, especially in the provinces of Java and Bali. PPKM status in Java and Bali Province has entered level 1 Up O maritim.go.id Economy In 2022, the government will raise the inflation assumption to the range of 3.5% - 4.5% from the previous target of only 2% to 4%. Finance Minister Sri Mulyani also believes that domestic inflation is currently starting to experience pressure Up T cnbcindonesia .com Social The Covid-19 pandemic has accelerated the growth of the e-commerce industry in Indonesia and increased public consumption on digital platforms. People also shop more online than shopping in person at the location. Based on the report "Navigating Indonesia's E-Commerce: Omnichannel as the Future of Retail", 74.5 percent of consumers shop online more than they shop offline Up T money.kompa s.com Based on the “We Are Social” report, the number of active social media users in Indonesia was 191 million people in January 2022. This number increased by 12.35% compared to the previous year, which was 170 million people. Seeing the trend, the number of social media users in Indonesia continues to increase every year Up O dataindonesia. id Based on the KPPU's annual report for the 2021 period published in April 2022, the business competition index in Indonesia in 2021 is considered the highest in the last four years Up T databoks.kata data.co.id Technolog y In addition to currency, consumers now prefer to use a digital wallet or e-wallet for their daily needs Up O finansial.bisni s.com International Journal of Human Capital Management, Vol. 6 (2), December 2022 45 | P a g e There are many aspects that can be utilized for the emergence of social media, one of which is using social media as a marketing tool Up O kompasiana.c om The point of sales or POS application can assist business owners in managing product sales to customers. Some of the benefits provided are monitoring and managing product stock automatically, managing product prices faster and making transactions with consumers more practical Up O jurnal.id Customer Analysis Customer analysis is conducted to find out how customers make purchases through five stages, namely need recognition, information search, evaluation of alternatives, purchase decisions and postpurchase behavior. Need Recognition At the need recognition stage, consumers need to buy basic needs, so they visit the grocery store. The monthly cost incurred by consumers to shop at their own grocery stores ranges from Rp400.000,00 to Rp700.000,00 Information Search Based on the results of interviews with consumers, the results show that consumers get information about the grocery stores they often visit from the closest people, such as family members and residents. If they want to switch to other grocery stores, consumers will look for information through the internet, social media and those closest to them Evaluation of Alternatives The grocery stores that are known by consumers based on the results of the interviews are Toko Delima, Sinar Baru and Baruna Jaya. Things that consumers consider in choosing a grocery store are price, promotion, product completeness, delivery service, installment payment system, availability of online purchases, convenience and return service Purchase Decision At the purchase decision stage, consumers are not only customers from Toko Delima, but also customers from Toko Sinar Baru and Baruna Jaya. The way that consumers make their purchases is offline and online Postpurchase Behavior Based on the results of interviews with consumers, after making a purchase at the grocery store they visited, the consumer was satisfied and would recommend the grocery store to others. The suggestions given by consumers to the grocery stores they visit are to add online channels to make purchases and provide even more attractive promotions Competitor Analysis Competitors analysis is an analysis conducted to evaluate the strengths and weaknesses of competitors' marketing strategies, so as to identify opportunities and threats from competitors. One of the competitors of Toko Delima is Toko Sinar Baru. The market segmentation of Toko Sinar Baru is those who are domiciled in urban and rural areas of Probolinggo, whose occupations are housewives, heads of families and students, including teenagers, adults and the elderly with upper middle class, middle and lower middle class. The target market of Toko Sinar Baru is those who live in the urban area of Probolinggo, whose work is housewives who are adults (26-45 years old) International Journal of Human Capital Management, Vol. 6 (2), December 2022 46 | P a g e with middle and lower middle class. Toko Sinar Baru positions its business as an affordable store with a complete range of products. The products sold by Toko Sinar Baru are necessities such as oil, rice, spices, milk, sugar and so on. Toko Sinar Baru also sells items that do not include necessities such as cigarettes, snacks and others. Toko Sinar Baru provide services to their customers in the form of delivering goods, returning damaged goods due to store errors up to a maximum of one day after the goods are received and finally providing an installment payment system on condition that they have been a consumer of Toko Sinar Baru for four months and provide personal data, as well as must pay off a maximum of two weeks after purchase. Toko Sinar Baru sets the price of its products with a competition-based pricing strategy, this strategy makes the price of goods sold in this store set based on the price of goods sold by its competitors and is used as a benchmark. Toko Sinar Baru is located at Jalan Raya Panglima Sudirman no. 182, Probolinggo, East Java. Toko Sinar Baru sells offline and online through the WhatsApp Business application where consumers can contact the WhatsApp number to make an order. Toko Sinar Baru promote its store by word-of-mouth, so that consumers who make purchases at this store are expected to recommend it to others. Toko Sinar Baru carries out its promotion by providing discounts for products that are close to expiration or those that are not selling well and for consumers who make a minimum transaction of Rp. 500,000,00 will get prizes in the form of packaged food or drinks and free delivery services. In addition, Toko Sinar Baru also carries out online promotions using the WhatsApp Business application. Other competitors from Toko Delima are Toko Baruna Jaya. The market segmentation of Toko Baruna Jaya is those who live in urban and rural areas of Probolinggo, whose occupations are housewives, heads of families and students including teenagers, adults and the elderly with upper middle, middle and lower middle class. The target market of Toko Baruna Jaya is those who live in the urban area of Probolinggo, whose work is an adult housewife (26-45 years old) with middle and lower middle class. Toko Baruna Jaya positions its business as a store with low prices and a store that makes consumers comfortable shopping. Toko Baruna Jaya sells basic needs such as rice, cooking oil, toiletries, kitchen utensils and so on. Toko Baruna Jaya also sells non-staple products, such as cigarettes, snacks, children's toys and so on. The service provided by Toko Baruna Jaya is that consumers can make payments in installments if they have been a consumer of Toko Baruna Jaya for six months and provide personal data and must pay off a maximum of seven days after purchase. Toko Baruna Jaya sets the price of its products with a competition-based pricing strategy, so that the price of goods sold in this store is determined by using the price of goods sold by its competitors as a benchmark. Toko Baruna Jaya is located at Jalan Pahlawan No.109, Probolinggo, East Java. Toko Baruna Jaya only sells physically and does not sell online. Baruna Jaya does a word-of-mouth promotion with the aim that consumers who make purchases at Baruna Jaya are expected to recommend Baruna Jaya to the people closest to them. Toko Baruna Jaya carries out promotions by providing discounts such as bundling promos for products that are nearing expiration or products that are not selling well. Toko Baruna Jaya does not promote its shop online. Company Analysis Company analysis aims to evaluate the strengths and weaknesses of the marketing strategy of a business, so that it can gain a sustainable competitive advantage. The market segmentation of Toko Delima is those who live in urban and rural areas of Probolinggo, whose occupations are housewives, heads of families and students including teenagers, adults and the elderly with upper middle, middle and lower middle class. The target market of Toko Delima is those who live in the urban area of Probolinggo, whose work is housewives who are adults (26-45 years old) with middle and lower middle class. Toko Delima positions its business as a store that has affordable prices, guaranteed quality of goods and continues to innovate. International Journal of Human Capital Management, Vol. 6 (2), December 2022 47 | P a g e The products sold by Toko Delima are mostly necessities such as cooking oil, rice, toiletries, medicines, kitchen spices, milk, eggs, sugar and so on. Toko Delima also sells items that do not include necessities such as cigarettes, candles, baby diapers, snacks and others. Toko Delima provides services to its consumers in the form of delivering goods, returning goods that are damaged due to a store error up to a maximum of two days after the goods are received and finally, providing an installment payment system on condition that they have been a customer of Toko Delima for four months and provide personal data, and must perform payment within seven days of purchase. Toko Delima sets the price of the products it sells with a cost-plus pricing strategy, which does not pay attention to demand from the market or prices given by competitors. Toko Delima is located at Jalan Prajurit Siaman A9-A10, Probolinggo, East Java. Toko Delima sells its products offline and online through a personal WhatsApp application where consumers can contact the WhatsApp number to make an order. Toko Delima does its promotion by word of mouth, where consumers who make purchases at Toko Delima are expected to recommend Toko Delima to their closest people. Toko Delima also carries out online promotions using the personal WhatsApp application to provide promotions to its consumers. In addition, Toko Delima conducts promotions by providing discounts for products that will expire or products that are not selling well. Competitive Profile Matrix Competitive profile matrix is a tool to identify the strengths and weaknesses of the company and competitors related to the company's strategic position. Critical success factors in CPM include internal and external issues, so that there is a ranking of strengths and weaknesses. Table 2 Competitive Profile Matrix No Key Success Factors Weight Toko Delima Sinar Baru Baruna Jaya Score W X S Score W X S Score W X S 1 Price 0.30 2 0,6 3 0,9 4 1,2 2 Product Completeness 0.08 3 0,24 4 0,32 2 0,16 3 Return Service 0.08 4 0,32 3 0,24 1 0,08 4 Delivery Service 0.15 3 0,45 4 0,6 1 0,15 5 Installment Payment System 0.08 3 0,24 4 0,32 2 0,16 6 Promotion 0.15 3 0,45 4 0,6 2 0,3 7 Convenience 0.08 2 0,16 4 0,32 3 0,24 8 Availability of Online Purchases 0.08 2 0,16 3 0,24 1 0,08 Total 1 2,62 3,54 2,37 International Journal of Human Capital Management, Vol. 6 (2), December 2022 48 | P a g e Information: Score 4 is major strength Score 3 is minor strength Score 2 is minor weakness Score 1 is major weakness Conclusion: Based on the CPM calculation, it can be seen that Toko Delima is in the middle position among its competitors, namely Sinar Baru and Baruna Jaya, with a CPM value of 2.62. SWOT Analysis SWOT analysis is an analysis conducted to evaluate the overall strengths, weaknesses, opportunities and threats of a company. The following are the results of the SWOT analysis in this study: A. Strengths (S1) The products provided at Toko Delima are quite complete (CPM) (S2) The return service provided by Toko Delima is very good (CPM) (S3) The delivery service provided by Toko Delima is quite good (CPM) (S4) The installment payment system from Toko Delima is quite good (CPM) (S5) The promotion given by Toko Delima is quite good (CPM) B. Weaknesses (W1) The price given by Toko Delima is quite high (CPM) (W2) The convenience provided by the Pomegranate Shop is quite low (CPM) (W3) The online purchase system provided by Toko Delima is quite poor (CPM) C. Opportunities (O1) The government assesses that the COVID-19 pandemic has begun to be controlled in Indonesia, especially in the provinces of Java and Bali. PPKM status in Java and Bali Province has entered level 1 (PESTEL) (O2) Based on the “We Are Social” report, the number of active social media users in Indonesia was 191 million people in January 2022. This number increased by 12.35% compared to the previous year, which was 170 million people. Seeing the trend, the number of social media users in Indonesia continues to increase every year (PESTEL) (O3) In addition to currency, consumers now prefer to use a digital wallet or e- wallet for their daily needs (PESTEL) (O4) There are many aspects that can be utilized for the emergence of social media, one of which is using social media as a marketing tool (PESTEL) (O5) The point of sales or POS application can assist business owners in managing product sales to customers. Some of the benefits provided are monitoring and managing product stock automatically, managing product prices faster and making transactions with consumers more practical (PESTEL) (O6) If they want to switch to other grocery stores, consumers will look for information through the internet, social media and those closest to them (CDMP) (O7) The suggestions given by consumers to the grocery stores they visit are to add online channels to make purchases and provide even more attractive promotions (CDMP) International Journal of Human Capital Management, Vol. 6 (2), December 2022 49 | P a g e D. Threats (T1) The Covid-19 pandemic has accelerated the growth of the e-commerce industry in Indonesia and increased public consumption on digital platforms. People also shop more online than shopping in person at the location. Based on the report "Navigating Indonesia's E-Commerce: Omnichannel as the Future of Retail", 74.5 percent of consumers shop online more than they shop offline (PESTEL) (T2) In 2022, the government will raise the inflation assumption to the range of 3.5% - 4.5% from the previous target of only 2% to 4%. Finance Minister Sri Mulyani also believes that domestic inflation is currently starting to experience pressure (PESTEL) (T3) Based on the KPPU's annual report for the 2021 period published in April 2022, the business competition index in Indonesia in 2021 is considered the highest in the last four years (PESTEL) Matrix TOWS The TOWS matrix is used to develop four types of strategies, namely SO strategy (strengths-opportunities), WO strategies (weakness-opportunities), ST strategies (strengths- threats) and WT strategies (weaknesses-threats). Table 3 Matrix TOWS Toko Delima Strengths Weaknesses (S1) The products provided at Toko Delima are quite complete (W1) The price given by Toko Delima is quite high (S2) The return service provided by Toko Delima is very good (W2) The convenience provided by the Pomegranate Shop is quite low (S3) The delivery service provided by Toko Delima is quite good (W3) The online purchase system provided by Toko Delima is quite poor (S4) The installment payment system from Toko Delima is quite good (S5) The promotion given by Toko Delima is quite good Opportunities SO Strategy WO Strategy (O1) The government assesses that the COVID-19 pandemic (S5, O2, O4, O6) Although the promotions carried out by Toko Delima are quite good, (W2, O1, O3, O5) The pandemic which has begun to be controlled and the PPKM International Journal of Human Capital Management, Vol. 6 (2), December 2022 50 | P a g e has begun to be controlled in Indonesia, especially in the provinces of Java and Bali. PPKM status in Java and Bali Province has entered level 1 they can still be improved by adding promotions through social media which are currently only done through the whatsapp application, this is because there are consumers who are looking for information related to grocery stores through social media, plus currently the number of social media users in Indonesia continues to increase. Toko Delima can use Instagram social media to do promotions, because according to a survey conducted by Populix, Instagram is one of the most widely used social media platforms by respondents. Toko Delima can create informative social media by providing interesting content such as new products, applicable discounts and information related to services provided by the store, such as delivery services and installment payment systems. Through Instagram, Toko Delima can also add a means of purchasing by including linktr.ee, so that consumers can be directly diverted to various sales channels provided by Toko Delima, such as WhatsApp Business, Tokopedia and Shopee level which has decreased will increase the number of customers visiting Toko Delima, so Toko Delima must improve the convenience of its store which is currently still quite low. Toko Delima can take advantage of point of sales or POS applications to manage product stock to make it more practical, so consumers don't have to wait long to find out product availability in the store. The POS application also provides cashless payment features such as debit, credit, ovo, shopeepay and so on which are currently more in demand by consumers. The POS application also provides convenience for the Pomegranate Shop such as providing data information from each transaction, more practical product price management and others. In addition, Toko Delima can also create queue numbers for consumers who come to the store, so that consumers will feel comfortable and fair when waiting in line to make transactions. Toko Delima must also maintain the tidiness and cleanliness of the store and train its employees to always provide the best service so that consumers feel comfortable when visiting Toko Delima (O2) Based on the “We Are Social” report, the number of active social media users in Indonesia was 191 million people in January 2022. This number increased by 12.35% compared to (W3, O7) Consumers want more varied online channels, this can be used by Toko Delima to improve its online purchasing system, which is currently still quite poor. Toko Delima can switch from using personal whatsapp to business whatsapp so that International Journal of Human Capital Management, Vol. 6 (2), December 2022 51 | P a g e the previous year, which was 170 million people. Seeing the trend, the number of social media users in Indonesia continues to increase every year interaction with consumers becomes easier with features to automate, sort and reply to messages quickly. Whatsapp business also has a feature to include information about the business being carried out, such as address, email and store operating hours. In addition to the whatsapp business, Toko Delima can also add sales channels through Shopee and Tokopedia, because based on data from Databoks, Shopee and Tokopedia lead the e- commerce market in Indonesia with the highest number of visitors in Indonesia in the first quarter of 2022 (O3) In addition to currency, consumers now prefer to use a digital wallet or e- wallet for their daily needs (O4) There are many aspects that can be utilized for the emergence of social media, one of which is using social media as a marketing tool (O5) The point of sales or POS application can assist business owners in managing product sales to customers. Some of the benefits provided are monitoring and managing product stock automatically, managing product prices faster and making transactions International Journal of Human Capital Management, Vol. 6 (2), December 2022 52 | P a g e with consumers more practical (O6) If they want to switch to other grocery stores, consumers will look for information through the internet, social media and those closest to them (O7) The suggestions given by consumers to the grocery stores they visit are to add online channels to make purchases and provide even more attractive promotions Threats ST Strategy WT Strategy (T1) The Covid-19 pandemic has accelerated the growth of the e-commerce industry in Indonesia and increased public consumption on digital platforms. People also shop more online than shopping in person at the location. Based on the report "Navigating Indonesia's E- Commerce: Omnichannel as the Future of Retail", 74.5 percent of consumers shop online more than they shop offline (S5, T3) The increasingly fierce business competition requires Toko Delima to create something new, one of which is to add more types of promotions, because the promotions carried out by Toko Delima are currently relatively the same as compared to its competitors. Toko Delima can create new types of promotions that have not been implemented by competitors, such as giving discounts on twin dates and months such as 8.8 and 9.9, providing a point system that can later be exchanged for prizes and make a lucky draw (W1, T2, T3) With inflation assumed to be rising and business competition getting tighter, Toko Delima should change its product pricing, which is currently the highest compared to its competitors. Toko Delima can apply competition-based pricing, by making the price of the product provided by competitors as a benchmark for the price that will be set in Toko Delima (T2) In 2022, the government will raise the inflation assumption to the range of 3.5% - 4.5% from the previous target of only 2% to 4%. International Journal of Human Capital Management, Vol. 6 (2), December 2022 53 | P a g e Finance Minister Sri Mulyani also believes that domestic inflation is currently starting to experience pressure (T3) Based on the KPPU's annual report for the 2021 period published in April 2022, the business competition index in Indonesia in 2021 is considered the highest in the last four years New STP and Marketing Mix for Toko Delima In the future, the STP and marketing mix of Toko Delima will experience changes in the aspects of price, place and promotion strategies. There are no changes to the STP strategy and product. In addition, Toko Delima in the future is expected to have added value to its service elements, so that previously only using 4Ps will become 7Ps, because by providing good or quality services, it will add value to the sales of its physical goods. Here is the STP and 7P for Toko Delima in 2023: Segmenting The market segmentation of TD is those who live in urban and rural areas of Probolinggo. His occupations are housewives, heads of families and students including teenagers, adults and the elderly with upper middle, middle and lower middle class Targeting The target market of Toko Delima is those who live in the urban area of Probolinggo, whose work is housewives who are adults (26-45 years old) with middle and lower middle class Positioning Toko Delima positions its business as a store that has affordable prices, guaranteed quality of goods and continues to innovate Product The products sold by Toko Delima are mostly necessities such as cooking oil, rice, toiletries, medicines, kitchen spices, milk, eggs, sugar and so on. Toko Delima also sells items that do not include necessities such as cigarettes, candles, baby diapers, snacks and others. Toko Delima provides services to its consumers in the form of delivering goods, returning goods that are damaged due to a store error up to a maximum of two days after the goods are received and finally, providing an installment payment system on condition that they have been a customer of Toko Delima for four months and provide personal data, and must perform payment maximum seven days after purchase Price Toko Delima, which previously used a cost-plus pricing strategy to set the price of its products, changed to a competition-based pricing strategy, which made the price of the product provided by competitors as a benchmark for the price to be set at Toko Delima International Journal of Human Capital Management, Vol. 6 (2), December 2022 54 | P a g e Place Toko Delima is located at Jalan Prajurit Siaman A9-A10, Probolinggo, East Java. Toko Delima previously sold its products offline and online via personal WhatsApp. There is a change, which is now using WhatsApp Business as well as through Tokopedia and Shopee Promotion Toko Delima does its promotion by word of mouth, where consumers who make purchases at Toko Delima are expected to recommend Toko Delima to their closest people. Toko Delima, which previously only did promotions by giving discounts for products that were about to expire or products that were not selling well, is now carrying out other promotions such as giving discounts on twin dates and months, providing a point system for consumers who shop so that they can be exchanged for gifts and make a lucky draw. In addition, Toko Delima, which previously promoted online via personal WhatsApp, has now been changed to WhatsApp Business and Instagram by creating interesting and informative content. People The services provided by Toko Delima are as follows: a. Tangibles Featuring a clean and tidy shop, as well as professional employees b. Emphaty Employees pay attention or care to the consumers c. Reliability Employees provide services as promised accurately d. Responsiveness Employees provide fast or responsive service to consumer wants and needs e. Assurance Employees provide assurance to consumers by communicating well, understanding the products being sold and maintaining a good attitude Physical Evidence Toko Delima uses posters or banners to display the advantages and services provided by the store, such as providing cashless payments, providing delivery services, providing an installment payment system, ongoing promotions and providing online purchases Process Consumers who come will take a queue number, after that the consumer can wait in the seat that has been provided until the queue number is called by the store employee, then the consumer can go to the cashier to make a transaction CONCLUSION Conclusions from the results of the study are as follows: 1. Strategies for promotion using social media Instagram 2. Strategies to increase store convenience 3. Strategy to add online sales channels 4. Strategy to add promotion type 5. Product pricing strategies Some suggestions that the author can give are: 1. The need for cost allocation, because some of the recommended marketing strategies may cost money, such as fees for using point of sales applications and for conducting promotions 2. The need for commitment from Toko Delima’s owner and employee that the business being run must prioritize the service aspect, not only the quality of the products and competitive International Journal of Human Capital Management, Vol. 6 (2), December 2022 55 | P a g e prices, but the services provided must also be good, because by providing good services, it will add value to the sales of its physical goods 3. Commitment to learning technology is also needed by Toko Delima’s owner and employee, because some of the recommended strategies require the use of technology, such as using social media, e-commerce, applications to create designs and point of sales applications. REFERENCES Creswell, J.W. (2008). 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