The Indonesian Journal of Computer Science

[Link]
Volume 13, Issue 4, August 2024
[Link]

Innovative Customer Relationship Management (CRM) Development in

Marketplace: The Case Study of Tokopedia

Heribertus Elingga Ajitrisna1, Bambang Syairudin2

[Link]@gmail.com1, bambangsyairudin@gmail.com2
1,2 Magister Inovasi Sistem dan Teknologi, Institut Teknologi Sepuluh Nopember

Article Information Abstract

Received : 5 Jul 2024 This study examines Tokopedia’s innovative Customer Relationship
Revised : 23 Jul 2024 Management (CRM) development in the Indonesian marketplace landscape,
Accepted : 8 Aug 2024 driven by technological advancements and shifting consumer behaviors. The
research employs a two-pronged approach: data collection from Tokopedia's
website and analysis using the McKinsey 7S Framework. Objectives include
Keywords understanding Tokopedia's strategies to attract and retain customers
through personalized marketing, customer feedback integration, and loyalty
Tokopedia, Customer
programs. The results indicate that Tokopedia's cohesive CRM approach,
Relationship
emphasizing shared values, leadership style, and skilled workforce,
Management (CRM),
effectively enhances customer satisfaction and loyalty. This integrated
marketplace, market
strategy has contributed to Tokopedia's substantial growth and competitive
segmentation, customer
edge in the dynamic marketplace ecosystem. Future research could explore
loyalty
Tokopedia's CRM effectiveness compared to competitors and the potential of
targeted market segmentation strategies.

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A. Introduction
The marketplace landscape in Indonesia has experienced substantial growth,
driven by advancements in information technology and changing consumer
behaviors. This transformation necessitates innovative strategies for Customer
Relationship Management (CRM) to sustain competitive advantage and ensure
customer loyalty. Digital marketing and technological advancements have
reshaped the marketplace industry. According to We Are Social, as of January
2021, the world population was estimated to be around 7.83 billion people, with
4.66 billion internet users (59.5 percent) [1]. In Indonesia, 25% of internet users
actively engage in marketplaces and e-marketplaces using computers or laptops,
while 80% use mobile phones for their online shopping activities [2]. This shift
towards digital platforms has necessitated the implementation of effective digital
marketing strategies to attract and retain customers. CRM systems are pivotal in
maintaining and enhancing customer interactions. Effective CRM strategies involve
leveraging data analytics to understand customer behaviors, preferences, and
feedback, which in turn allows for personalized marketing efforts and improved
customer service [3].
Indonesia's retail sector is booming, experiencing annual growth of 10-15%
[4]. Hypermarkets dominate the market, followed by minimarkets and
supermarkets. Retailing involves selling goods and services directly to consumers,
extending beyond physical stores to include service provision. This necessitates
differentiating between retailers based on whether they primarily focus on
merchandise or services. As competition intensifies, retailers are adopting various
strategies to attract and retain customers. Modern retail has shifted its focus from
price to enhancing customer service, with CRM being a key strategy. CRM is a
multi-stage process designed to identify, acquire, retain, and develop customers.
By prioritizing strong customer relationships, CRM fosters long-term, profitable
interactions, making it an essential aspect of retail success [5]. Effective CRM
builds customer loyalty and positive word-of-mouth, delivering value that leads to
customer satisfaction and loyalty. Loyal customers not only return for repeat
purchases but also promote the business to others, influencing new customers to
engage. CRM provides a competitive edge by offering superior value compared to
competitors, achieved by fostering strong emotional connections with customers,
reducing customer churn, and securing a sustainable advantage.
The intense competition within Indonesia's retail sector, fueled by both
domestic and foreign players, highlights the critical role of CRM in this research. By
implementing robust CRM strategies, Indonesian retail companies can cultivate
customer loyalty, a key factor for success in this competitive landscape [5]. E-CRM,
or electronic CRM, further strengthens these strategies by integrating them with
digital platforms to provide a seamless and efficient customer experience. This
study explores the concept of CRM through the perspectives of Kincaid (2003) and
Jagdish et al. (2001). Kincaid emphasizes the strategic aspect of CRM, highlighting
the use of information, processes, technology, and people to manage customer
interactions throughout their entire lifecycle – encompassing marketing, sales,
services, and support [6]. Jagdish et al. (2001) further elaborate on CRM as a
comprehensive strategy and process focused on acquiring, retaining, and
partnering with selective customers [7]. This collaborative approach aims to create

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superior value for both the company and the customer. Building on established
CRM frameworks, leading Indonesian marketplace platforms like Tokopedia have
tailored their approaches to suit their diverse customer bases. Tokopedia's
innovative CRM strategies focus on personalized marketing, integrating customer
feedback, and fostering loyalty programs – all designed to enhance customer
satisfaction and build long-term engagement. Recent studies showcase
Tokopedia's success: the platform attracts millions of monthly users with high
engagement rates, likely driven by its effective CRM and digital marketing efforts.
Personalized marketing campaigns, for example, have reportedly led to a
significant increase in user retention and satisfaction.
This research emphasizes the critical importance of CRM in the Indonesian
retail landscape, where fierce competition exists from both domestic and foreign
companies. By adopting robust CRM strategies, Indonesian retailers can cultivate
customer loyalty, a vital element for success in this competitive environment [5].
E-CRM, or electronic CRM, takes these strategies a step further by integrating them
with digital platforms, creating a smooth and efficient customer experience.
Leading Indonesian marketplace platforms, like Tokopedia, have built upon
established CRM frameworks and tailored them to their extensive and diverse
customer bases. Tokopedia's innovative CRM approach focuses on three key areas:
personalized marketing, incorporating customer feedback, and fostering loyalty
programs. These strategies all aim to enhance customer satisfaction and build
long-term engagement. Recent studies demonstrate Tokopedia's success. The
platform boasts millions of monthly users with high engagement rates, likely
driven by their effective CRM and digital marketing strategies. For example,
implementing personalized marketing campaigns has reportedly led to a
significant increase in user retention and satisfaction.
This research examines how Tokopedia's user interface (UI) and user
experience (UX) design contribute to its successful CRM strategies. In the digital
shopping world, UI/UX design is crucial. A well-designed interface not only attracts
users but also keeps them engaged by offering an intuitive, efficient, and enjoyable
experience. For Tokopedia, prioritizing UI/UX ensures users can navigate the
platform easily, find products quickly, and complete transactions smoothly. This
positive experience is essential for CRM because it directly impacts customer
satisfaction and loyalty. Tokopedia's focus on UX optimization ensures a seamless
and user-friendly interface with fast loading times, easy navigation, and responsive
design across devices, ultimately enhancing the overall shopping experience.
Tokopedia's innovative CRM approach exemplifies the importance of integrating
digital marketing techniques with CRM practices to boost customer loyalty and
satisfaction. By applying the McKinsey 7S Framework, this study systematically
analyzes Tokopedia's strategy, structure, systems, shared values, style, staff, and
skills. This framework provides a comprehensive understanding of how these
elements work together to support effective CRM implementation and drive
sustained business growth. By examining Tokopedia's innovative CRM strategies
through this lens, the study highlights how these practices contribute to customer
loyalty and satisfaction in the competitive marketplace landscape.

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B. Research Method
This research employs a two-pronged approach to examine Tokopedia's
competitive strategies in the global marketplace landscape. First, data is collected
directly from the Tokopedia website (July 2024 version). This data focuses on
strategies the company has implemented to attract consumer interest and provide
satisfactory customer service experiences. Second, the collected data is analyzed
using the McKinsey 7S Framework. This framework sheds light on the various
measures Tokopedia has undertaken to achieve a competitive advantage in the
global marketplace.

Figure 1. Tokopedia Analysis Process

In this study, the McKinsey 7S Framework [8] serves as the analytical lens to
examine Tokopedia, a leading Indonesian marketplace platform (see Figure 1).
This framework dissects an organization into seven critical but interrelated
elements categorized as hard and soft skills. The McKinsey 7S Framework consists
of:
1. Strategy: The organization's long-term plan to achieve its goals and
maintain a competitive advantage.
2. Structure: The formal organizational design, including hierarchy,
departments, and chain of command.
3. Systems: The daily processes and procedures employees utilize to complete
tasks. This encompasses both business processes and information systems
that support operations.
4. Shared Values: The core values that define the company culture and guide
employee behavior.
5. Style: The leadership style of top management and how they implement
strategies.
6. Staff: The employees and their capabilities, encompassing recruitment,
training, and motivation.
7. Skills: The specific skills and competencies of the workforce that provide a
competitive edge.

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Figure 2. The 7 Stages of McKinsey [8]

The McKinsey 7S Framework categorizes the factors influencing

organizational success into two areas: hard skills and soft skills (see Figure 2).
1. Hard skills represent the formal and planned aspects of an organization:
• Strategy: A long-term plan to maintain a competitive advantage in the
marketplace, providing Tokopedia with a clear direction to achieve its
goals. Without a well-defined strategy, an organization would be like a
ship sailing without a destination. Formulating a strong strategy
requires careful analysis of the current and future activities of
competitors within the business environment.
• Structure: How the organization is structured, encompassing
departments, hierarchy, and chain of command. A well-defined structure
ensures alignment between the company's shared vision and its
strategic goals and objectives.
• Systems: The information technology systems and processes that
support the daily operations of the organization.
2. Soft skills focus on the less tangible aspects of an organization's culture:
• Shared Values: The core values that define the company culture and
guide employee behavior.
• Style: The leadership style and how managers implement strategies.
• Staff: The capabilities and development of the workforce, including
recruitment, training, and motivation.
The McKinsey 7S Framework offers a valuable tool to analyze how
Tokopedia's internal environment fosters successful customer relationship
management (CRM) in the marketplace landscape. By examining the
interconnected elements of strategy, structure, systems, shared values, style, staff,
and skills, the framework sheds light on how Tokopedia's internal factors
contribute to effective CRM practices.

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C. Result and Discussion

Tokopedia Program Webpage

This study employs the McKinsey 7S Framework [8] to examine Tokopedia, a
leading Indonesian marketplace platform. The framework dissects an organization
into seven critical elements categorized as hard and soft skills. This analysis begins
with a focus on shared values, the core element that binds the remaining factors
together.
Shared values serve as the foundation for any organization, shaping its vision
and guiding employee behavior [9]. Tokopedia's vision acts as a guiding principle
for all members, aiming to be concise, memorable, and inspirational. An effective
vision should provide direction, focus organizational efforts, and attract
stakeholders. Ultimately, it describes the ideal future state and desired levels of
service, product quality, and cost efficiency. Tokopedia's vision, "to create a safe,
convenient, and empowering online shopping experience," encapsulates its core
values. This vision is further embodied in the principles of "Selalu Ada Selalu Bisa"
(Always Here, Always Able) and "Mulai Aja Dulu" (Start Now).
Selalu Ada Selalu Bisa emphasizes Tokopedia's continuous availability and
capability to meet customer needs. This translates into an intuitive user interface
with a clean layout and well-organized product categorization, facilitating easy
product discovery. Tokopedia's three-step transaction process (adding to cart,
selecting shipping/payment, and completing purchase) ensures a convenient
shopping experience, aligning with its commitment to customer accessibility.
Mulai Aja Dulu encourages customers to take the first step towards a fun and
engaging shopping experience. Tokopedia offers weekly deals, reward programs,
and shopping coupons, fostering a positive shopping environment. Features like
personal profiles, wish lists, points, bonuses, and social media sharing further
enhance customer engagement. This principle embodies the idea of making the
shopping experience enjoyable and straightforward for customers.
Through an examination of these elements within the current iteration of
Tokopedia, this research aims to uncover the key factors that contribute to the
platform's enduring competitive advantage in the marketplace.

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Figure 3. Tokopedia Affiliate Program Webpage

An analysis of the Tokopedia Affiliate Program webpage (see Figure 3) and

the program's features underscores its emphasis on ease of use and maximizing
affiliate earning potential. This focus is evident in the streamlined registration
process and accessible requirements. Tokopedia further empowers affiliates with
resources like Kuncie & Tokopedia Academy, which equip them with the skills to
enhance their promotional efforts. Becoming a Tokopedia affiliate is a
straightforward process. Users can register online and immediately begin
promoting products or stores through shareable links. Tokopedia's affiliate
program offers a performance-based commission structure, where affiliates earn
commissions based on their sales. To incentivize participation, Tokopedia provides
additional features such as increased commissions for promoting specific stores
and bonus opportunities through missions. Notably, the program boasts
commission rates up to 30%, placing it among the most competitive in the
industry. Tokopedia's approach to affiliate partnerships stands in contrast to that
of [Link]. [Link]'s onboarding process involves data verification calls and
in-office training sessions for merchants. While [Link] offers comprehensive
support through merchant tools and ensures quality logistics, Tokopedia
prioritizes flexibility and speed, allowing affiliates to quickly begin earning
commissions.

Tokopedia's Strategic Approach to Partnerships

Tokopedia's strategic approach to partnerships centers on three pillars:
selection, pricing, and service quality. The platform offers a vast product selection
and collaborates with brands to strengthen their online presence. Competitive
pricing is achieved through supplier and bank partnerships that facilitate

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promotional programs. Sustainability is ensured by prioritizing customer

satisfaction, providing a seamless shopping experience, and offering ongoing
support to both affiliates and merchants. This comprehensive strategy fosters a
dynamic and sustainable marketplace ecosystem, making Tokopedia a compelling
choice for both sellers and consumers.

Figure 4. Tokopedia's Merchant Corner

As Figure 4 illustrates, Tokopedia's Merchant Corner boasts a streamlined

registration process, allowing merchants to set up their online stores with minimal
effort. This aligns with information on the Tokopedia platform itself, where data
confirms a simplified registration requiring just a few clicks. Tokopedia's
commitment to ease of use goes beyond registration. The platform offers a
comprehensive suite of features to support merchants throughout their journey,
including marketing tools and sales analytics. These empower merchants to gain
valuable customer insights and optimize their promotional strategies, propelling
their businesses forward.
A leader in Indonesian marketplace, Tokopedia, caters to a vast user base of
18 million monthly active users, offering them a marketplace with an impressive
network of 14 million merchants [10], [11]. This extensive reach is backed by a
robust logistics network, supported by reliable partners, to ensure nationwide
delivery, reaching even remote areas of Indonesia. Tokopedia doesn't stop there;
they provide peace of mind with comprehensive after-sales service to address any
product issues that may arise. This comprehensive support system fosters trust

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with both merchants and customers, contributing to a smooth shopping

experience for everyone.
Tokopedia prioritizes product quality. They guarantee the authenticity of all
products on their platform, with over 1.8 billion products from trusted brands and
sellers. This commitment builds trust with consumers and positions Tokopedia as
a reliable marketplace. Furthermore, Tokopedia caters to diverse buying behaviors
by offering no minimum order requirement, welcoming purchases of both single
items and bulk quantities. Tokopedia's program offers several benefits that
position merchants for success. Competitive product pricing is achieved through
partnerships with suppliers and banks, facilitating promotional programs to
attract customers. Figure 5 also highlights various payment options available,
including Cash on Delivery (COD), a popular method in Indonesia. This flexibility in
payment options caters to a wider audience and removes potential barriers for
customers.
Tokopedia's success rests on a strategic focus on three pillars: selection,
pricing, and service quality. The platform's vast product selection caters to diverse
consumer needs, while collaboration with established brands strengthens their
online presence. Competitive pricing strategies ensure merchants can remain
attractive to customers. Finally, Tokopedia prioritizes service quality, emphasizing
customer satisfaction and providing ongoing support to its merchant base. This
commitment to all stakeholders – merchants, customers, and partners – fosters a
sustainable and dynamic marketplace ecosystem. The platform's user base
continues to grow, with around 18 million monthly active users. The recent
integration with TikTok Shop further expands Tokopedia's reach, potentially
connecting merchants with up to 143 million monthly active users in Indonesia.
This combination of a robust marketplace program, a vast and engaged user base,
and strategic partnerships positions Tokopedia as a leader.

Tokopedia Business Partners

As Figure 5 illustrates, Tokopedia prioritizes building strong relationships
with business partners. They achieve this through special programs that offer
valuable support and information. Tokopedia seeks passionate and creative
partners who share their vision of empowering Indonesia through marketplace.
This collaborative spirit extends to their company culture, which emphasizes
teamwork and a shared sense of purpose. Tokopedia fosters a work environment
that values its employees. These values encourage employees to strive for
excellence, prioritize customer needs, and take pride in their work. Tokopedia also
emphasizes open communication, acceptance, and teamwork, fostering a positive
and collaborative work atmosphere. “Customer Focus” is another core principle at
Tokopedia. This translates to prioritizing customer needs and working backwards
to ensure a seamless shopping experience. The company motto “Selalu Ada Selalu
Bisa” (Always Here, Always Able) reinforces their commitment to reliability and
being readily available to address customer needs. Tokopedia’s motto “Mulai Aja
Dulu” (Just Start) embodies their philosophy of encouraging initiative and action.
This applies to both their partners and users. Tokopedia empowers individuals to
take the first step and pursue their entrepreneurial dreams. Tokopedia recognizes
that its employees are its greatest asset. They focus on creating a comfortable and

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inspiring work environment that fosters continuous learning and development.

This investment in their people equips Tokopedia with the knowledge and
expertise needed to thrive in the competitive marketplace landscape. In essence,
Tokopedia’s commitment to collaboration, a positive work environment, customer
focus, and employee development positions them as a strong player in the
Indonesian marketplace ecosystem.

Figure 5. Tokopedia Business Partners

Payment Methods on Tokopedia’s Platform

Figure 6 showcases the extensive array of payment methods available on
Tokopedia’s platform. This variety caters to the diverse needs of its user base,
ensuring a smooth and convenient shopping experience for all. Tokopedia offers a
comprehensive suite of options, including:
1. E-wallets: GoPay, OVO, and LinkAja
2. Virtual Accounts
3. Bank Transfers: Likely includes transfers from major Indonesian banks like
BRI and Mandiri.
4. Installment Plans: GoPayLater and credit card installments (Tokopedia,
n.d.), particularly attractive for users who prefer to spread out their
payments.
5. Cash on Delivery (COD): A popular option in Indonesia, providing flexibility
for those who prefer to pay upon receiving their orders.
6. Other Options: BRI Ceria, BCA KlikPay, Mandiri Clickpay, Jenius Pay, JakOne
Mobile, credit card installment plans without a credit card, and payments
through physical outlets (Gerai).

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This strategic approach to payments aligns with Tokopedia’s commitment to

its core values of “Mulai Aja Dulu” (Just Start) and “Selalu Ada Selalu Bisa” (Always
Here, Always Able)” (Tokopedia, n.d.). By providing a multitude of payment
options, Tokopedia removes barriers to entry and caters to users at every level,
fostering a more inclusive marketplace that benefits both customers and
merchants.

Figure 6. Payment Methods Available on Tokopedia’s Platform

Tokopedia's Global Dominance

Tokopedia's roadmap to global dominance, illustrated in Figure 7, is a three-
pronged strategy that balances immediate operational improvements with long-
term innovation and strategic expansion.
Operational Growth focuses on building a strong foundation. Tokopedia
prioritizes nurturing customer relationships through effective CRM strategies,
attracting new customers through targeted marketing, and retaining high-value
users. They refine their market reach by segmenting audiences and tailoring
offerings to specific demographics and locations. Additionally, strategic expansion
into new markets with favorable demographics fuels Tokopedia's growth. They
continuously develop innovative service offerings to differentiate themselves from
competitors and improve business efficiency.

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Innovative Growth emphasizes redefining the marketplace landscape.

Tokopedia fosters a culture of innovation by investing in research and
development to create new products and services. They also reimagine existing
offerings to unlock new functionalities. Recognizing the power of collaboration,
Tokopedia partners with established and emerging players to develop
comprehensive solutions and strengthen brand management. This may involve
knowledge sharing, joint ventures, or co-creation of new business models.
Strategic Growth focuses on transforming the marketplace landscape.
Tokopedia aspires to become a leader in specialized areas within the marketplace
ecosystem. They achieve this by developing deep expertise and building the
infrastructure necessary to support their focus areas. Furthermore, they expand
their reach by diversifying into new product categories and potentially acquiring
competitors. Tokopedia actively explores alternative business models and
ventures to stay ahead of the curve, managing risks and seizing new opportunities.
By strategically segmenting markets and locations, Tokopedia ensures sustainable
growth in the long run.
Together, these initiatives contribute to growth. A mix of different strategies
fosters both short-term and long-term growth, each with varying levels of risk and
business impact. The approach to achieving growth depends on the specific
marketplace company and can be influenced by both internal and external factors.
It requires aligning with what is suitable for the market and the organization.
Growth involves an marketplace company leveraging its assets, such as brands and
relationships, and aligning them with the best market opportunities to generate
profits. This alignment is a creative process, matching the strongest assets with the
best opportunities. The company then explores how different asset combinations
can drive innovative growth. The most effective initiatives are combined and
assessed as part of an initiative portfolio, aimed at achieving operational growth
with the fastest results and minimal impact [12], [13].
Marketplace companies aim for substantial growth. While innovative growth
takes longer, it eventually makes a noticeable difference. These companies also
pursue strategic growth, which involves slower processes but yields significant
results. Similar to other managed portfolios, the challenge is balancing
straightforward initiatives with more strategic, high-impact investments [14], [15].
The ideal "growth center" within an marketplace company is the marketing and
commercial director, even though this is a relatively new role. This position
integrates a focus on sales and marketing with pricing and profit strategies, thus
becoming a key driver of growth for the entire business. Consequently,
marketplace companies require growth acceleration [16]. Accelerating growth
involves more than just increased effort; it entails aligning with the market's pace,
even though the business can significantly influence the market. A well-managed
growth portfolio can be accelerated through various methods. There are three
innovative platforms built upon previous ones to achieve this acceleration.

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Figure 7. Tokopedia's Roadmap to Global Dominance

Marketplace Growth through Innovative Inspiration-Strategy Leadership

Figure 8 illustrates Tokopedia's comprehensive strategy for accelerating
growth in the dynamic marketplace landscape. They prioritize agility through
faster decision-making, rapid development (achieved through outsourcing, in-
market trials, and adaptable strategies), and a keen understanding of market
trends. Tokopedia takes their customer focus beyond basic CRM segmentation.
They consider how these segments will influence their market penetration
strategy, allowing for more targeted marketing and personalized customer
experiences that foster stronger relationships and loyalty. Additionally, Tokopedia
embraces calculated risks by developing innovations alongside long-term strategic
plans. Internally, they cultivate a creative environment and seek partnerships that
fuel growth. By strategically allocating resources and prioritizing key markets,
Tokopedia ensures focused growth initiatives. This aligns with Chris Zook's
emphasis on continuous innovation for survival in a competitive landscape.
Furthermore, Tokopedia leverages a unique segmentation strategy (also depicted
in Figure 9) to identify high-growth areas, explore untapped opportunities, and
avoid saturated markets. They categorize markets as "hot locations" with high
growth potential, "cold locations" with undiscovered opportunities, and "black
locations" representing outdated markets. This colorful segmentation allows
Tokopedia to stay ahead of the curve and maintain its competitive edge. By
combining agility, innovation, and strategic segmentation, Tokopedia positions
itself for sustainable growth in the ever-evolving marketplace.

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Figure 8. Accelerating the Growth of Marketplace Companies through Innovative

Inspiration-Strategy Leadership (adapted from [16])

Figure 9 depicts Tokopedia's approach to identifying and capitalizing on

strategic market segments within the marketplace landscape. By understanding
these distinct customer groups, Tokopedia can pinpoint the most promising
opportunities, anticipate competitor moves, and plan for future developments.
Their strategic segmentation categorizes markets as follows:
1. Hot Locations: These high-demand areas represent established markets
with intense competition from various brands. Examples include popular
product categories like smartphones, multimedia devices, and smart TVs.
While competition is fierce, these segments also offer high potential
rewards.
2. Cold Locations: Early adopters and trendsetters gravitate towards these
markets, seeking out novel and unique products. This includes emerging
niches or trends like innovative Korean cuisine or smart car technology.
Cold locations represent potential future hotspots that Tokopedia can
explore for future growth.
3. White Locations: Unexploited opportunities reside in these nascent
markets. Examples include innovative retail experiences that leverage
interactivity or cashless payment systems. White locations hold significant
growth potential as they represent uncharted territory.
4. Black Locations: Traditional products and industries experiencing decline
fall within this category. Examples include outdated technologies like
traditional photography or older car manufacturing methods. Black
locations are moving away from market relevance and are best avoided by
Tokopedia.

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Figure 9. Location Sharing in Marketplace and Innovation Strategies (adapted

from [16])

By strategically allocating resources and tailoring approaches to these

different segments, Tokopedia can maximize growth and stay ahead in the
competitive marketplace landscape. Their ability to identify and capitalize on hot
and cold locations ensures they remain leaders in innovation and customer
engagement. Additionally, exploring white locations keeps Tokopedia at the
forefront of emerging market trends. This strategic segmentation aligns with
Tokopedia's ongoing efforts to enhance its platform, introduce new features, and
adapt to market changes. As Fisk (2008) explains, understanding the marketplace
landscape empowers companies to navigate and leverage different market
conditions effectively [17]. It is important to note that Tokopedia's success goes
beyond just innovative products, especially when targeting high-growth markets.
As the text mentions, Tokopedia fosters strong strategic partnerships with
established brands and distributors, which CRM principles can also support.
Collaborating with these powerful partners grants Tokopedia the necessary
resources and market insights to effectively navigate and penetrate new market
segments. This approach strengthens Tokopedia's market position and ensures
they can offer comprehensive solutions that cater to the evolving needs of their
diverse customer base. By leveraging these partnerships, Tokopedia can maintain
its competitive edge and drive significant growth in the dynamic world of
marketplace.

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Figure 10. Colorful Segmentation Market

Figure 10 illustrates the colorful market segmentation strategy for

Tokopedia, highlighting diverse consumer groups and market opportunities. This
segmentation is crucial for Tokopedia's growth and aligns with the McKinsey 7S
Framework to support strategic planning and execution.
1. Green Market: Represents environmentally conscious consumers who
prioritize sustainability and ethical products. These customers are
concerned with issues like environmental impact, local community support,
and personal well-being.
2. Silver Market: Encompasses the older generation, particularly baby
boomers, who have significant purchasing power. This group values quality
and reliability and is an essential target for products and services catering
to their lifestyle and needs.
3. Red Market: Includes emerging markets with rapid economic growth, such
as the former Soviet Union states now part of the European Union. These
markets present opportunities due to their booming economies and
entrepreneurial spirit.
4. Blue Market: Represents the rise of technology-driven economies in regions
like Southern Africa, Brazil, India, and Dubai. These areas are shifting from
low-cost manufacturing to high-tech industries, driven by business acumen
and ambition.
5. Gray Market: Targets tech enthusiasts and early adopters who are eager to
embrace the latest gadgets and innovations. This segment is characterized
by a strong desire for cutting-edge technology and unique personal
productivity tools.

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6. Brown Market: Focuses on fashion trends and authenticity. Consumers in

this segment are influenced by fashion cycles and seek unique, authentic
products that stand out.
7. White Market: Consists of budget-conscious consumers who prioritize
affordability. This segment is crucial for products and services that offer
value for money, such as low-cost airlines and budget-friendly retail
options.
8. Gold Market: Represents the luxury goods market, which is rapidly growing
across Asia and other key markets. Consumers in this segment are drawn to
high-end, prestigious brands and are willing to pay a premium for luxury
products.

In Figure 9 and Figure 10, it is evident that strategy plays a crucial role in
developing an marketplace company like Tokopedia. This strategic focus must be
supported by other operational factors. The McKinsey 7S Framework provides a
comprehensive approach to understanding and optimizing these factors. Figure 10
highlights the importance of innovation in Structure, Style, and Systems. For
Tokopedia, the location structure is a key factor that must be precisely determined
to expand in the marketplace market. Tokopedia needs to adopt a distinct style to
stand out against competitors and implement a precise targeting system. By doing
so, Tokopedia can identify the right dimensions of Structure, Style, and System,
such as general aggressiveness and capability.
1. General: This refers to the presence of many competitors in the
marketplace industry, including potential competitors who have
established their market locations first. Understanding the competitive
landscape helps Tokopedia strategize effectively.
2. Aggressiveness: This involves evaluating how aggressively competitors are
implementing their location strategies. Competitors with highly creative
and effective strategies pose a greater threat than those without such
strategies. Tokopedia needs to be vigilant in assessing these competitive
dynamics.
3. Capability: This pertains to the financial strength of the location. Tokopedia
must assess the financial capacity of a market location and determine which
products can be successfully sold there.

Figure 10 emphasizes the importance of Strategy, Staff, and Skills in market

segmentation. After determining the location, market segmentation should be
more specific. Tokopedia requires reliable human resources to support expansion
and robust sales capabilities to drive massive sales. The strategy must align with
Tokopedia's vision and mission. Staff and skills specifications are critical to face
global competition effectively.
1. Competitor-Type: Salespersons with great ambition to win and derive
satisfaction from defeating rivals. This type will expand market segments
rapidly if aligned with segmentation strategy.
2. Ego-Driven Type: Salespersons who seek acknowledgment regardless of
others. This type is generally unsuitable for marketplace companies as they
can cause problems.

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3. Type Achiever: A rare type of salesperson who expands market segments

slowly but consistently achieves goals. This type is highly recommended for
Tokopedia.
4. Service-Oriented Type: Salespersons with excellent communication skills.
They help maintain and expand market segments by building and nurturing
customer relationships.

Figure 10 demonstrates the importance of Strategy, Staff, and Skills in

Tokopedia's market segmentation efforts after determining the location. Once the
location is established, Tokopedia needs to focus on segmenting the market more
specifically to optimize growth and customer engagement. In the Staff and Skills
section, Tokopedia requires reliable human resources to support its expansion
efforts. This includes having a robust sales force capable of driving substantial
sales growth. The strategy employed must align with Tokopedia's vision and
mission, ensuring coherence across all levels of operation. Specific staff and skills
requirements are essential for Tokopedia to remain competitive on a global scale.
Sales personnel play a critical role in this strategy and can be categorized into four
key types:
1. Competitor-Type: Salespersons with a strong ambition to win and
satisfaction derived from outperforming rivals. When integrated with a
segmentation strategy, this type can rapidly expand market segments.
2. Ego-Driven Type: Salespersons who seek personal acknowledgment
regardless of team dynamics. This type is generally unsuitable for
marketplace companies like Tokopedia, as they tend to cause internal
problems.
3. Type Achiever: A rare type of salesperson who steadily expands market
segments while consistently achieving set goals. This type is highly
recommended for Tokopedia due to their reliable performance.
4. Service-Oriented Type: Salespersons with excellent communication skills
who help maintain and build market segments by fostering strong customer
relationships. They are crucial for maintaining and expanding Tokopedia's
customer base.

These strategic, staff, and skills considerations ensure that Tokopedia can
effectively segment its market, as illustrated in the colorful segmentation model.
This model helps Tokopedia tailor its approach to various consumer groups and
market opportunities, enabling the company to meet diverse needs and capture
significant market share. By focusing on these elements, Tokopedia can enhance its
market positioning and drive sustainable growth. The colorful segmentation
market visualizes different market opportunities, allowing Tokopedia to apply
targeted strategies that maximize impact and competitive advantage in the
dynamic marketplace landscape.

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D. Conclusion
Tokopedia's strategic focus on growth initiatives, coupled with its
organizational structure, technological systems, shared values of customer
centricity, leadership style, skilled workforce, and unique competencies, all work
together to ensure effective CRM implementation. By prioritizing all seven
elements, Tokopedia achieves a cohesive CRM approach that aligns with its overall
business goals. This integrated strategy enables them to deliver a consistent and
high-quality customer experience, fostering loyalty and driving sustainable growth
in the dynamic marketplace landscape. The McKinsey 7S Framework proves
valuable in analyzing Tokopedia's customer relationship management (CRM)
strategies. Each element, from strategic growth initiatives to staff skillsets,
contributes to effective CRM. Tokopedia's focus on all seven elements fosters a
cohesive, customer-centric approach aligned with business goals. This integrated
strategy delivers a consistent and high-quality customer experience, driving
loyalty and growth. Further research could explore how Tokopedia leverages each
7S element and compare its CRM effectiveness with competitors. Additionally,
exploring the potential of market segmentation, aligned with Fisk's (2008) concept
of a "close category strategy" – focusing on innovative offerings and adjacent
consumer segments within specific geographic areas while maximizing existing
capabilities – could lead to enhanced customer satisfaction and profitability [17].

E. Acknowledgment
I would like to express my sincere gratitude to my fellow System Innovation
and Technology Master's students at Institut Teknologi Sepuluh Nopember for
their stimulating discussions and collaborative spirit.

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