Designing an Optimal Marketing Strategy in Response to the Revenue Growth Paradox: A Case Study of PT Eka Panca Semesta
Abstract
Revenue growth is one of the main indicators that shows the success of a company in carrying out business activities effectively and sustainably. However, in the practice of the cargo delivery service industry, a phenomenon known as the revenue growth paradox is often found, namely a situation where the increase in certain business variables is not always directly proportional to the growth of revenue (sales/revenue) and expected profitability. This phenomenon indicates a gap between business growth theory and operational reality in the field that is still rarely studied in depth, especially in the context of cargo agency service companies that are highly dependent on technical variables such as shipping tonnage and complex cost structures. A significant increase in shipping/sales tonnage (revenue) was not in line with revenue growth (profit) and instead led to a decline in profitability. This condition indicates inefficiencies in operational cost management and the pricing strategy implemented, which aligns with the findings of Reibstein et al. (2009) that an aggressive marketing strategy without cost control can trigger a growth paradox. EPS Cargo's marketing strategy, which relies on price reductions or discounts to retain customers, is also problematic. While this strategy can maintain stability and even increase shipment tonnage, failing to meet program targets results in financial losses, particularly in paying shortfalls in Air Waybill purchase prices to airlines. This fact highlights the gap between marketing policies and the effectiveness of achieving profitability goals. The emphasis on operational costs carried out by companies to increase profitability causes the workforce to experience burnout and high turnover rates, as explained by Schaufeli and Bakker (2004) that high work pressure without adequate compensation can reduce the company's operational performance and effectiveness.
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