The two objectives of this project are:

- To design a marketing strategy for GE Lokindo to sell Dash 8 diesel locomotives to the South Sumatran freight transportation industry.

-To include in the strategy:

o A go-to-market offensive strategy

o Strategy against rival locomotive suppliers

o Private investment schemes.

In order to achieve those objectives, this project looks into the condition of the industry and the market for diesel locomotives in Indonesia in general and South Sumatra in particular. Several financial schemes are then analyzed to determine their viability in supporting the marketing efforts.

The project concludes with the recommendation that in order to win over the competition, in South Sumatra GE Lokindo should position itself as follows:

- Stress marketing higher quality products, emphasizing on its strength in relation to train sets requirement and price-quality ratio

- Concentrate on selling locomotives for coal transportation

- Exploit collaboration with INKA and local content providers in order to minimize unit cost

- Package its deals with attractive financing schemes

- And package its deals with after sales service schemes.

The project also recommends the strategy that GE Lokindo should adopt against its principal rivals, namely GM EMD and China's Loric. A go-to-market offensive strategy, a communication strategy and a road map conclude this project report.



Reseach Location: PT GE Lokomotif Indonesia

Supervisor: Junius Tirok, PhD.

Accepted on September 2001



Read at Library Only