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Thesis Digital Transformation Media

This document is a thesis submitted by Izma Dwi Ariesta Toana and Bramanti Setiadi to fulfill the requirements for a Master's degree in Strategic Management from BINUS University in Jakarta, Indonesia. The thesis examines the digital transformation of Mercusuar Newspaper, a 60-year old print newspaper based in Central Sulawesi, Indonesia. It analyzes Mercusuar's financial performance and identifies the need for the newspaper to transform digitally. The thesis utilizes literature reviews, data collection from Mercusuar management, and interviews with the newspaper's owner, employees, media practitioners and experts to understand Mercusuar's transformation in the digital age.
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0% found this document useful (0 votes)
149 views72 pages

Thesis Digital Transformation Media

This document is a thesis submitted by Izma Dwi Ariesta Toana and Bramanti Setiadi to fulfill the requirements for a Master's degree in Strategic Management from BINUS University in Jakarta, Indonesia. The thesis examines the digital transformation of Mercusuar Newspaper, a 60-year old print newspaper based in Central Sulawesi, Indonesia. It analyzes Mercusuar's financial performance and identifies the need for the newspaper to transform digitally. The thesis utilizes literature reviews, data collection from Mercusuar management, and interviews with the newspaper's owner, employees, media practitioners and experts to understand Mercusuar's transformation in the digital age.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 72

MEDIA TRANSFORMATION IN DIGITAL AGE

(A CASE OF MERCUSUAR NEWSPAPER)

CONSULTING PROJECT

IZMA DWI ARIESTA TOANA (2001903604)

BRAMANTI SETIADI (2001878501)

BINUS BUSINESS SCHOOL

MAGISTER MANAGEMENT EXECUTIVE PROGRAM

IN STRATEGIC MANAGEMENT

BINUS UNIVERSITY

JAKARTA

2023
MEDIA TRANSFORMATION IN DIGITAL AGE

(AN EMPIRICAL STUDY OF MERCUSUAR


NEWSPAPER)

CONSULTING PROJECT

IZMA DWI ARIESTA TOANA (2001903604)

BRAMANTI SETIADI (2001878501)

A Thesis Submitted to the Graduated Faculty

In Partial Fulfillment of the Requirements

For MM Executive-Strategic Management

in

BINUS BUSINESS SCHOOL

BINUS UNIVERSITY
MEDIA TRANSFORMATION IN DIGITAL AGE

(AN EMPIRICAL STUDY OF MERCUSUAR


NEWSPAPER)

CONSULTING PROJECT

IZMA DWI ARIESTA TOANA (2001903604)

BRAMANTI SETIADI (2001878501)

Supervisor

(Dr. Ir. Dewi Tamara, MM,MS.)


Date : 23 Februari 2023
STATEMENT PAGE

We, IZMA DWI ARIESTA TOANA 2001903604; BRAMANTI SETIADI


2001878501 , truly acknowledge that our thesis with title “Media Transformation
in Digital Age (An Empirical Study of Mersusuar Newspaper) is our concept and
the project result with guidance from supervisor.

We, also truly acknowledge that the contents of this thesis are not copied and not
from other people’s work, except our citation from literature or written interview
result and already written in the reference list.

That is our acknowledgement truly made and if in reality, this wasn’t true, we are
willing to be sanctioned.

Jakarta, 23 February 2023

IZMA DWI ARIESTA TOANA BRAMANTI SETIADI


2001903604 2001878501

i
EXCLUSIVE RIGHTS STATEMENT

We :
Name : Izma Dwi Ariesta Toana
NIM : 2001903604
Name : Bramanti Setiadi
NIM : 2001878501
Thesis title : Media Transformation in Digital Age ( An Empirical Study of
Mercusuar Newspaper)

Hereby grant to our school, Bina Nusantara University, the non-exclusive right to
archive, reproduce, and distribute our thesis, in whole or in part, whether in the form
of printed and electronic formats.
We acknowledge that I/we retain exclusive rights to our thesis by using all or part of
it in the future work or outputs, such as article, book, software, and information
system.

Jakarta, 23 February 2023

IZMA DWI ARIESTA TOANA BRAMANTI SETIADI


2001903604 2001878501

ii
PREFACE

With gratitude to God Almighty, for the abundant blessings that gives us strengths in
making this Thesis possible. This Thesis is a final requirement for A Master Degree
in BINUS Business School. All those who have helped us during the working of this
Thesis, we would like to say many thanks to :
1. Mrs Ir. Dewi Tamara MM., MS as our Thesis Supervisor, who had given us
limitless support, advice, direction, and patience during the writing of this
Thesis.
2. My late lecturer, (Alm) Mr. Tubagus Hanafi, MBA.,M.Si who supported me
during his lifetime.
3. Mr. Tri Putra Toana and Mrs. Ir. Hj. Maya Malania Noor, MTP as Izma’s
parents, that already support me supported me to take this study. I dedicate
this thesis to my father who has sent me to school.
4. My Son, Ashadel Alif Fadhilah, which struggled with me during my studies
which after experiencing the earthquake
5. Mr. Tri Putra Toana, as Mercusuar’s owner, who had given us support and
direction.
6. Mr. Aminudin as Mercusar’s journalist
7. Mr. DR. Ir. Soyyan Bachmid, MSi. as a media observer in Central Sulawesi
for a warm discussion.
8. Mr. Drs Farid Ja’far Nassr as a loyal reader and a subscriber of Mercusuar.
9. Our beloved class of Batch #37 who given us such fun time during our
learning in BINUS Business School.
10. Mas Adjie our senior Batch #36 who supported us also
11. Mr. Ardantya Syahreza, SE who have been willing to be examiners from
Mercusuar
12. All lectures who had taught us since the beginning and all of BINUS Business
School staff who had given us great services during our study
13. All my friends and family who support me to complete my study

We realize that this Thesis is still far perfect; therefore we accept any constructive
suggestions to the perfection of this Thesis. We also hope that this Thesis could give
benefit to other people and this business plan could be implemented and succeed as
planed.

iii
Jakarta, 23 February 2023

Isma Dwi Ariesta Toana and Bramanti Setiadi

iv
ABSTRACT

Since the era of Dutch colonialism. Newspapers have been present and born in
Indonesia in printed form. In each era, newspapers also have different roles and
functions. However, by the time growth, digitalization which began with the internet
born had changed the world and human behavior. It is unavoidable that almost all
aspects of life in ways, forms, habits and activities must be transformed to
digitalization. Even today, digitization is a culture and become a lifestyle. So that
digital transformation becomes a trend in all parts of the world.

Mostly, business people must and force themselves to transform digitally. So


that, their business could still survive and not crushed by the times cause of
technological advances. Print media is one type of business that is very prominent in
digital transformation because it is the leading source of information which is the
most important thing in world life.

Mercusuar Newspaper also experienced the same thing. Print media, which
was born 60 years ago, now has to transform digitally. The goals from this thesis are
to analyze a transformation Mercusuar Newspaper in digital age. The design of this
thesis is a consulting thesis. The literature review played an important role that helped
to acquire a better understanding of media transformation. The data was collected
through literature review, collect data from internal management Mercusuar, and also
deep interview with Mercusuar owner and employeer, media practitioners and media
experts.

Keyword : Print Media, Digital Age, Media Transformation, Digital Transformation

v
TABLE OF CONTENT

Title Page
Supervisor Approval Page
Statement Page i
Exclusive Rights Statement ii
Preface iii
Abstract iv
Table of Contents v
List of Tables vii
List of Figures viii

CHAPTER I. INTRODUCTION
I.1 BACKGROUND 1
I.2 MERCUSUAR 13
I.2.1 HISTORY 13
I.2.2 ORGANIZATION STRUCTURE 16
I.2.3 VALUE OF HISTORY ENGAGEMENT 19
I.3 PROBLEM IDENTIFICATION 22
I.3.1 MERCUSUAR FINANCIAL PERFORMANCE 22
I.3.2 THESIS PROBLEM DEFINITION 26
I.4 OBJECT AND BENEFITS 26
I.5 SCOPE OF STUDY 27

CHAPTER II. THEORETICAL OVERVIEW


II.1 THE ANSOFF MATRIX 29
II.1.1 DEFINITION 29
II.1.2 THE ANSOFF MATRIX GROWTH STRATEGY 29
II.2 MEDIAMORPHOSIS 33
II.3 MEDIA CONVERGENCE 34

CHAPTER III. PROJECT METHODOLOGY


III.1 METHODOLOGY 37
III.2. CONSULTING FRAMEWORK 37
III.3. DATA GATHERING METHOD 38
III.4 TYPE AND SOURCE OF DATA 39
III.4.1 PRIMARY DATA 39
III.4.2. SECONDARY DATA 42
III.5 DATA PROCESS ANALYSIS 42
III.6 CONCLUSION AND RECOMMENDATION 43

vi
CHAPTER IV RESULT AND DISCUSSION
IV.1.1 DATA GATHERING RESULTS 44
IV.1.1 QUESTIONNAIRE SURVEY 44
IV.1.1.1 RESPONDENT BY GENDER 44
IV.1.1.2 RESPONDENT BY JOB 45
IV.1.1.3 RESPONDENT BY EDUCATION 45
IV.1.1.4 RESPONDENT BY AGE 46
IV.1.1.5 QUESTIONNAIRE RESULTS 47
IV.2 INTERVIEW RESULTS 49
IV.3 DISCUSSIONS 51

CHAPTER V CONCLUSIONS
V.1 BLUEPRINTS 52
V.2 CONCLUSIONS 53

REFERENCE 55
APPENDIX QUESTIONNAIRE 57
BIOGRAPHY 59

vii
List of Table

Table 1. Mediamorphosis Concepts 33

viii
List of Figure

Figure 1.Types of Internet Content Most Frequently Accessed by Central


Sulawesi
Residents 5
Figure 2. Proportion of Individuals Using the Internet by Province 9
Figure 3.Central Sulawesi Residents’ Assessment of How Important the Function
of the Internet is 5
Figure 4.Central Sulawesi Residents’ Assessment of How Important the Function
of the Internet is 6
Figure 5. Number of Internet Users in Indonesia 7
Figure 6. The Social Media Platforms Most Used by Indonesians 7
Figure 7. Most Accessed Digital Advertising Channels for Global Consumers 8
Figure.8 Potential Reach of Social Media Ads on a Global Scale 9
Figure 9. Central Sulawesi Population Projection (Women+Men) 11
Figure 10. Information Sources Accessed to Obtain Information 12
Figure 11 MERCUSUAR Organization Structure 16
Figure 12. UN Award Winning News 21
Figure 13. Recapitulation of Annual Newspaper Circulation 23
Figure 14. Advertising Revenue Recapitulation 24
Figure 15. Income Statement 25
Figure 16. Ansoff Matrix 32
Figure 17. Questionnaire Respondents by Gender 44
Figure 18. Questionnaire Respondents by Job 45
Figure 19. Questionnaire Respondents by Education 45
Figure 20. Questionnaire Respondents by Age 46
Figure 21.Questionnaire Result Bond with Mercusuar 47
Figure 22.Questionnaire Result Online Media vs Printed Media 48
Figure 23 Questionnaire Result Mercusuar in Social Media 48
Figure 24 Questionnaire Result Online Ads versus Printed Ads 49
Figure 25 Questionnaire Result Type of Social Media Frequently Access 49

ix
CHAPTER I

INTRODUCTION

I.1   BACKGROUND

The news media impacted Indonesians’ viewpoints of religion, politics, and

other sources of interest long before the invention of the internet. However,

media dependency in Indonesia has grown exponentially with the advent of

social and digital media outlets. Everything can be found online. Furthermore,

the internet is now at people’s fingertips-literally, as most individuals can access

the Web via their smart phones.

Technological advancements have changed the way we live over the past

decade. However, in using or adopting these technologies, consumers must

carefully consider the advantages and disadvantages of these technologies.

Researchers are digging into the most popular technologies that are right for

newspapers to do business with today. Now, anyone with a gadget can be a

journalist, as digital media in conjunction with social media create availability

to most individuals. Technology allows individuals the ability to instantly

access works that were once printed in the form of books, newspapers or other

paper medium. The mediums have been forced to take on new roles. The “old

mediums” must find a way to coexist with “new media”. Consumer engagement

1
is an innovative way that is significantly profitable. Audience interaction

through social media could be the "new big thing" (Bly, 2010, para. 1). The way

consumers receive and participate in news is changing due to interaction

through social media (Gelason, 2010).  An example is Twitter, where news can

be personalized and responded by "followers" (Fahri, 2009). Commenting on

news content is perceived to gives audiences a sense of power (Bly, 2010)

Absolutely, profitability is the main goal of a business. Nowadays, many

newspapers are building their digital versions, and some are even changing their

form from print to online-based. As the invention of handheld tablets and other

similar media is considered the savior of print journalism, it is evident that

newspapers can now sell subscriptions to consumers and instantly receive news

and advertisements on their handheld devices. Online advertising is accessibly

much easier to find in the internet world and gives advertisers more flexibility

than print advertising. As such, advertisers are willing to pay a premium to

ensure that their message is seen by a specific audience for a specific period of

time. As described in the article "Small Paper Redefines Itself Online" (Frye,

2003) which explains how much more money has been made from online news

than print news. 

The issue in this thesis is how print media can survive technological changes,
due to decreased circulation and advertising revenue which results in financial
difficulties. The Mercusuar must adapt to changing times and technology, the
Mercusuar must face a new era. The era where business people have to change
their business model from printed to digital.

2
.I.2.  MERCUSUAR

I.2.1 HISTORY

Mercusuar newspaper was born on 1 September 1962, founded by an

Army soldier, Lieutenant Colonel Infantry Drs. H. Rusdy Toana. In his youth,

he was famously called Tonakodi, in the Sulawesi language which means a

person of small stature. He was a student who joined the Student Army and was

active in Muhammadiyah organizations and press activities in Yogyakarta

(Rore, 2019). First published as a weekly Independent newspaper under the

name Soeara Ra'jat  which was stencil printed and a small typewriter (Rore,

2019). In its early days, Mercusuar was a tool of struggle and enlightenment for

the establishment of Central Sulawesi Province and Tadulako University, now a

state university based in Palu. The news presented was more about these two

things (Sutrisno. 2020).

Despite choosing to be born as an independent newspaper that was not

polarized as a party-supporting newspaper during the 60s, Soeara Ra'jat's latent

leaning towards Muhammadiyah was visible because Rusdy Toana was known

as a Muhammadiyah figure in Central Sulawesi. After the publication of

Mimbar Ra'jat newspaper in 1963 which carried the voice of the communist

party in Indonesia, it was only then that Rusdy Toana claimed and explicitly

stated that Soeara Ra'jat was a newspaper that also carried religious da'wah

messages that leaned towards Muhammadiyah (Rore, 2019).

3
In 1966, Soeara Ra'jat changed its name to Mertjusuar in relation to the

government's decision at that time which required regional newspapers to be

affiliated with one of the newspaper publications in the center. And finally, it

was decided to affiliate with Muhammadiyah's Mertjusuar newspaper published

in Yogyakarta. Not only that reason, the name change was also made because

after the events of the September 30 Movement (G30S) by the PKI, everything

that used the word "Ra'jat" was connoted with the PKI (Jefiriantogie, 2020). 

“Tonakodi” chose Mercusuar based on the philosophical thought that

Mercusuar is a light in the darkness that shows the way so as not to get lost on

the way. Of course, it is hoped that the newspaper he founded will become a

source of enlightenment, guidance information, and a mouthpiece of truth for

mankind, especially the people of Central Sulawesi (Putra, 2022).

Moving from the heroic era of regional patriots to the era of commercial

business as a print media company. At that time the baton of leadership over

Mercusuar had passed to the second generation of Rusdy Toana, namely his

third son named Tri Putra. For a period of 10 years from 1992 to 2002,

Mercusuar collaborated with Jawa Pos as a strategic step in business

development. During that time, Jawa Pos placed its personnel in the

management of Mercusuar (Sutrisno, 2020). In 2002, the partnership ended.

After the resignation of Tri Putra Toana from the Jawa Pos Group until 2004,

Mercusuar took a break, not published. Meanwhile, Jawa Pos Group then

4
established a newspaper called Radar Sulteng in Central Sulawesi (Jefriantogie,

2020). 

In 2005, precisely on June 2, Mercusuar rose and was published again as

a newspaper with the slogan "The People's Newspaper of Central Sulawesi."

Until now, at the age of 61, in the hands of Tri Putra Toana, Mercusuar should

be proud of itself for transforming into the largest print media company and

leading the print media industry market in Central Sulawesi, as well as being

one of the local print media companies in Eastern Indonesia that can still exist

amid the onslaught of competing media under the auspices of national media

giants. Under the Tri Media Group umbrella, Mercusuar has several print media

subsidiaries as well as other media business differentiation. Certified by the

Indonesian Press Council with 100 percent of journalists declared competent,

Mercusuar has a competitive advantage as a trusted print media in Central

Sulawesi (Jefriantogie, 2020).

I.2.2. ORGANIZTION STRUCTURE

Mercusuar is a print media company with a single shareholder. It can be

said that this company is a family company. Therefore, the organizational

structure is very simple. Although the number of employees reaches 50 people,

they are divided into several departments, each led by a manager. There is no

5
board of directors, but directly the vice president director and president director

as the Chairman. 

The President Director directly leads the evaluation meetings that are

routinely held every week, quarterly, and annual meetings that usually discuss

the annual evaluation as well as the next year's work plan. 

Figure 11. MERCUSUAR Organization Structure

Editorial

There are about 40 journalist personnel divided into several coverage

teams. Coverage is divided according to the theme of the page contained in the

newspaper. And each page also has a page manager who is chosen from the 40

journalist personnel. There are also expert photographers, because the quality

6
war between print media is also determined by the photos of the coverage

reported. Journalists in the editorial division must be certified and declared

competent by the Indonesian Journalists Association. Not only that, journalists

must also attend regular training to maintain and even improve the quality of

their writing. In addition, journalists must also have a deep instinct for news

writing, because the news content at Mercusuar is more about news that

requires continuous investigation. The editorial team can be said to be the

creative team of a print media company, this is because journalists must

present different content and news every day. Therefore, the editorial division

is considered the spearhead of a print media. The editorial team is led by an

Editor-in-Chief who has the authority to determine whether a story is worth

publishing or not, as well as managing editorial management and journalists so

that the quality of content in the newspaper is always superior, reliable, and

accountable. This is why among all division heads /managers, the position of

editor-in-chief is the most prestigious.  Because journalists are considered to

have a closer emotional relationship with their government and private

colleagues, the company also allows journalists to receive advertising and

newspaper orders and provides a special rate for a percentage of their sales

turnover.

Sales & Marketing

The sales division is led by a sales manager who handles all of the

company's revenue, namely advertising and newspaper sales. There is 1 sales

7
marketing person and staff who record the administration of the company's

revenue. Before the covid-19 pandemic, the company hired 3 freelancers and

then became a sales team. However, due to the decline in revenue and the

financial crisis storm caused by the covid-19 outbreak, the company no longer

employs freelancers. In addition, the current division structure directly doubles

as the PR division. So, while conducting promotions, sales, the team in the

sales division also simultaneously performs the duties and functions of public

relations. 

Production

The production division is led by a manager who leads 2 units within

the production division, namely the printing unit and the circulation unit. The

printing unit is the unit that deals with the entire process until the newspaper

is published. The printing team has around 17 personnel who are divided into

two, namely, 7 pre-printing personnel and 10 personnel in charge of operating

the printing machine. While the circulation unit is a unit that regulates the

circulation of newspapers to agents and the distribution of newspapers

circulated by delivery man (Loper).

I.2.3 VALUE OF HISTORY ENGAGEMENT

Mercusuar daily newspaper has a very strong bond with the province of

Central Sulawesi because the birth of Mercusuar, which was originally named

Soera Ra'Djat, was intended as a tool for the struggle to establish the province

8
of Central Sulawesi, as written in part 1.2.1 history on this thesis. 2 years after

Soeara Ra'djat was born, it was only on April 13, 1964 that Central Sulawesi

became an autonomous region and officially became a Tingkat I Region. Since

then, April 13, 1964 has been designated as the anniversary of Central Sulawesi

Province and is commemorated every year.

Lieutenant Colonel (Inf) Drs. H. Rusdy Toana, the founder of the daily

newspaper Mercusuar, was named one of the regional heroes of Central

Sulawesi because he was one of the initiators of the establishment of the

province. In addition, he was also confirmed as an educational figure, religious

figure, and press figure of Central Sulawesi. "Tonakodi", Rusdy Toana's

nickname, with his handwriting has so many achievements that make the

Central Sulawesi region proud, including when as a student at Gadjah Mada

University Yogyakarta, he won a world-class writing competition with the

theme "The UN and the Meaning of the UN for Indonesia." It was later

published in New York by the United Nations.

It is this journey of Rusdy Toana's contribution to Central Sulawesi that has

a high historical bond value about the existence of the Mercusuar in Central

Sulawesi. In business terms, this makes one of Mercusuar's strengths for

positioning in the print media market in Central Sulawesi. In fact, this value

makes Mercusuar still able to survive with its printed newspaper in this digital

era in Central Sulawesi. News cooperation from the local government, both

provincial, district and city of Palu, always puts Mercusuar on priority.

9
Likewise, large companies located in Central Sulawesi also finally made

Mercusuar the first choice as a media partner. And, this is the main reason

almost all residents of Central Sulawesi still want the presence of Mercusuar as

a source of information and news in Central Sulawesi. They say, "To lose the

Mercusuar is to lose the history of Central Sulawesi." Because they consider the

Mercusuar a witness to the history of Central Sulawesi that is very attached

(Jefirantogie, 2020).

10
Figure 12. UN Award Winning News (Central Sulawesi Regional
Library Archives,1953)

11
I.3 PROBLEM INDENTIFICATION

I.3.1 MERCUSUAR FINANCIAL PERFORMANCE

Newspapers have 2 main sources of income, there are newspaper sales

(subscribers and retail) and advertising. Here we present revenue recapitulation

data for the last few years since digitalization began to develop and until the

closing of the book in 2022. This data is internal data from the Mercusuar

finance department.

As a family and traditional company, it is quite difficult to get data from

Mercusuar. In addition to the recording system that is still simple and not yet

integrated for the management system, Mercusuar still relies on peoples who

have worked for a long time especially in important positions such as finance.

12
Figure13. Recapitulation of Annual Newspaper Circulation (Marketing Department
Mercusuar Company, Internal Data,2022)

The number of circulation in the last 5 years has decline, especially since

2020 when we entered pandemic situation. From the graphic we can see that the

number of circulation was 503.180 copies in 2019, it reduce almost a half into

261.794 copies in 2022.

13
Figure14. Advertising Revenue Recapitulation (Finance Department Mercusuar
Company, Internal Data,2022)

The decline in circulation numbers is followed by a decline in advertising

revenue. We can see that within 5 years the advertising revenue from around

IDR 2,4 billion in 2018 dropped to around IDR 883 millon in 2022.

14
Figure 15. Income Statement (Finance Department Mercusuar Company, Internal
Data,2022)

The decline in revenue had an impact on the company's profit and loss. The

income statement shows that in 2018, the profit was printed at IDR

488.094.651. However, especially since the pandemic came, in 2020 there was

a significant decline that eliminated profits above 80% so that profits only

became 2 digits. Then profits continued to decline each year until 2022 almost

breaking even, because the remaining profit was only around IDR 10 million.

This shows that Mercusuar receives revenue that is only enough for the

company to survive. Judging from the last profit figure in 2022, this is a

warning for Mercusuar to start seriously thinking about its existence and

management system to restore its profit glory in this digital era.

15
1.3.2 THESIS PROBLEM DEFINITION

Based on the above facts and data, there are several issues that we have

identified for the Mercusuar :

1. Mercusuar continued to experience financial decline especially during the

pandemic where digitalization was forced to grow and become a global

culture of human life.

2. Due to this condition, Mercusuar must find the right strategy to restore its

lost market and financial glory.

1.4 OBJECT AND BENEFITS

As seen in the graph of Mercusuar's financial performance in terms of

revenue, in the last few years it has continued to experience a very significant

decline and even seems as a reminder alarm. There are several impacts that are

feared to arise if this is not addressed immediately, including:

1. Sales force productivity

2. Decreased payment of employee salary figures

3. Company reputation and image.

Seeing the seriousness of the impact, the company's management feels the need to

have a comprehensive understanding of the main causes of the decline in revenue,

especially the company's profit and welcomes a consulting project that aims to

16
understand and measure the main causes of the decline in revenue, especially the

decline in profit at the end of 2022 which is almost break-even.

The benefit of the results of this consulting project is in the form of input that can

be used as one of the considerations for the organization to develop a blueprint for

business and commercial management strategies to restore its financial glory and

restore its eroded market and revenue potential with the appropriate implement.

1.5 SCOPE OF STUDY

The consulting project gathering of data would be done by interviewing one

of Mercusuar’s journalist as representatives from the Editorial Department and

President Director from the internal side of the company. From External elements

also by interviewing one of An of academics and media observers to gain insight

from the market and external side of the company. A focus group and an

additional method of survey questionnaire will be distributed to Mercusuar's own

employees, readers, customers, business colleagues and civilians who are aware

of Mercusuar with random categories that constitute the potential revenue

population of Mercusuar. The purpose of this additional survey questionnaire is to

measure and understand the desires of the market as well as the desires or internal

viewpoints of the Mercusuar's own employees. The results of the collected data

will be analyzed based on theories related to market analysis and digital

transformation. This analysis will help to understand the reasons for the decline in

Mercusuar's revenue which will certainly have an impact on the company's

17
financial performance, which is the most important part of the company's

fundamentals.

This consulting project is conducted for Mercusuar's business and market

management strategy to become a media company that truly leads the media

industry market in Central Sulawesi as a whole on this digital age.

18
CHAPTER II

THEORETICAL OVERVIEW

II.1. THE ANSOFF MATRIX

II.1.1 DEFINITION

The Ansoff matrix is a tool that can help executives and marketers in an
organization understand how they can grow and devise strategies to realize more
growth.

This matrix combines market penetration, market development, product


development, and diversification, all of which are growth alternatives an organization
before moving forward in using the strategy.

II.1.2 ANSOFF MATRIX STRATEGY

The four growth strategies in the Ansoff Matrix include:

1. Market Penetration

The market penetration strategy is the first quadrant of the Ansoff


Matrix and provides the least risk of the four growth options. It occurs when
an organization tries to grow in an existing market with a product, service or
other offering it already has.

The goal of market penetration is for an organization to increase its


market share by finding new customers in the same market or selling more
of its offerings to its existing customer base.

19
Most companies use more dynamic promotions to achieve this goal,
although the methods organizations use may vary. A business can achieve
market penetration by:

• Increase their promotional efforts

• Lowered their prices

• Run sales and specials to get new customers

• Merging or acquiring a competitor's business in the same market

• Make product improvements to make it more attractive to consumers

• Refine their distribution process

2. Market Development

Market development is the second quadrant, and it is when an


organization uses its current offerings and tries to grow into other markets.
This could include expanding to other municipalities if they are local
shops, other regions, national or even international.

Any time an organization expands from their current market to another


where they are not yet in, whatever that new market is, it is a market
development growth strategy.

While there is slightly more risk than a market penetration growth


strategy, this one has a higher chance of success if the business can
increase its output without negatively affecting finances or distribution,
the markets they are entering are similar to the markets they have already
been successful in. and the offerings are unique enough to stand apart in
new markets.

With market development, businesses can:

• Build different segments of its customer base

20
• Foreign market attractiveness

• Expanding its customer base to include other parts of the market that
were not previously used, such as expanding from B2C to B2B

3. Product development

The third segment of the Ansoff matrix, product development, is when an

organization creates a new offering for an existing market. A product

development growth strategy is just as risky as a market development

strategy. With this strategy, the organization will have an expanded

product line that customers can choose from. As part of their product

development plan, businesses can:

•Partner with other companies to offer additional products or to increase


distribution

•Purchase rights from companies to manufacture and sell their products

•Use budget dollars to research what the market needs and develop
products that will fill the gaps in their customers' lives

4. Diversification

The fourth and final segment in the Ansoff Matrix is diversification,


and it poses the most risk to the business. This growth strategy involves
organizations looking to enter new markets with new products, services
or other offerings. This is the riskiest as it involves an untested product in
a market that you have no experience with.

There are two types of diversification:

21
Related diversification: Related diversification is when a company's new
offering complements a product they already produce or is at least in the
same field. For example, a company that makes computers can then build
a device that hides computer cables from view.

Unrelated diversification: Unrelated diversification is when a


company's new offering is beyond its known capabilities. For example, if
a company has been making notebooks and pens for 10 years but then
decides to produce reusable water bottles.

Figure 16. Ansoff Matrix ( John,2018)

22
II.2. MEDIAMORPHOSIS

Mediamorphosis is a transformation of communication media which is


usually caused by human dissatisfaction in the communication process,
resulting in innovation and technology in communication media.

There are three main concepts in mediamorphosis namely coevolution,


convergence and complexity. Coevolution is a change from the use of spoken
and written language as everyday language which then evolves and builds a
new class of language called digital language. This language is the computer
lingua franca of various global telecommunication networks. Meanwhile,
convergence is a process resulting from little similarities between the
broadcasting, film, printing, and computer industries. In other words,
convergence is a combination or crossing of paths that results in a
transformation at each unification or concentration of technology, such as the
creation of new technologies and unification in the media industry. While
complexity is the impact of the convergence process (Fidler, 2003; Olusola et
al, 2017). An explanation of the three mediamorphosis concepts can be
described in the table below :

Coevolution Changes in the form of communication


media is a cycle in a system. The nature
of the media always remains a part in
the system despite changes

Convergence The integration of various technologies


and forms of media present
simultaneously. Leads to mixed media
MEDIAMORPHOSI forms. Result in the transformation of
S each met entity and the creation of a
new entity

23
Complexity Situations and conditions that force
change. A situation that gives rise to
new ideas that transforms and enlivens
systems

Table 1. Mediamorphosis Concepts(Fidler, 2003)

II.3 MEDIA CONVERGENCE

Terry Flew in An Introduction to New Media stated that media

convergence is the result of intersection of three elements of new media,

namely communication networks, information technology, and media content.

Media convergence brings to the concept the unification of various information

services in one information device creating a digitalization breakthrough that

cannot be stopped by the flow of information. Convergence causes radical

changes in the handling, provision, distribution and processing of all forms of

information whether visual, audio, data and so on (Preston, 2001:27).

Michael O Wirth (2006:447) said that media convergence focuses on

technological convergence, function convergence, competitive convergence

and industrial structure convergence. Media convergence occurs because it is

driven by technological advances, especially online media (cybermedia), media

functions and media competition. Media convergence are multiple media

products that would be better produced together than separately to make it

more efficient. Because the function of the media is the same but each has a

different character. With convergence, a stronger industrial structure and a

24
wider target audience will be achieved. Media management strategies related

to the external environment have started to connect with the convergence

strategy (Albarran: 2006: 453).

Regarding the process of content convergence being carried out,

Dailey, Demo, and Spillman (Grant2009: 205) define five stages of activity in

convergence based on the level of participation, which is better known as the

convergence continuum.

The convergence continuum model has five stages called the convergence

process :

1. Cross-promotion, means cooperation between the two media to provide

space for each other to introduce media content.

2. Cloning, namely when media content is reproduced to be loaded on other

media. That is, one media displays news content from another media's

newsroom as is without change.

3. Coopetition, which is the stage when converged media entities work

together and compete at the same time.

4. Content Sharing which allows two different media to share content in the

form of repackaged or even including sharing budgeting. Media

convergence at this stage is mostly carried out by media that are under

one ownership.

25
5. Full Convergence, namely when different media cooperate fully, both in

terms of content collection, production, and distribution, and aims to

maximize the unique characteristics of each media to convey content. In

the full convergence stage, media that work together produce content and

topics collaboratively by leveraging the strengths of their respective

media platforms. This full convergence stage is rarely found in various

media groups.

26
CHAPTER III

PROJECT METHODOLOGY

III.1. METHODOLOGY

This chapter will cover this thesis’ design, and data collection

techniques. We conduct interview with the owner (president director),

employees (journalist) of Mercusuar to explore about the past and present of

Mercusuar also the transformation process that we suggest for Mercusuar in

the future. We also conduct survey to 200 customers of Mercusuar to look

how they see Mercusuar in the present and what they want to see Mercusuar

in the future. It is crucial to understand the reason why Mercusuar

experiencing setbacks and to formulate recommendation and action plan.

III.2 CONSULTING FRAMEWORK

The consulting project started with identifying problem in Mercusuar

followed by formulating the goals and the benefit of the project. Second step

was to analyze the secondary data gathered from the company that can be

shown the decreasing of circulation amount, advertising acceptance and

financial profit in the last five years. Third step was to gather theories data

from various journal and literature as explained in the Chapter 2. The next

27
step was to gather the primary data by doing interviews with Mercusuar’s

owner, employees and surveys to Mercusuar’s customers.

III.3 DATA GATHERING METHOD

The consulting project is using a qualitative method. Qualitative

method is used to gain an in-depth insight into how Mercusuar setbacks and

transformation in Mercusuar.

The methods of gathering the primary data will be explained in more

details as follows :

A. Interview :

This is a very basic method in gathering data, because it does not involve

complex analysis or processing the data into information. The interview

was designed with the primary list of questions related to the topic.

B. Questionnaire through Google Form :

The main advantage of questionnaire through google Form are that a

wide geographical area can be covered and respondent can take more time to

respond the questions. The questionnaire is send through Whats Up

application to 200 regular customer of Mercusuar.

28
III.4 TYPE AND SOURCE OF DATA

III.4.1 PRIMARY DATA

A. Interview

Interviews are held to understand the current situation and environment.


The following questions will be asked :

1. What is Mercusuar's view of the digital era?


2. Are there any efforts made by the Mercusuar to employees in carrying
out media convergence between printing and online media?
3. What kind of supporting facilities does Mercusuar have to run media
convergence?
4. How will Mercusuar survive in the digital era with so many new
competitors emerging?
5. The fundamental problem in the transformation of media to
convergence is a matter of culture and sometimes creates resistance.
How does Mercusuar deal with that?
6. What are the obstacles to media convergence in the Mercusuar now?
7. How do employees respond to changes in the current era?
8. In the future the Mercusuar will only be like this or how do you want
to develop it?
9. What are the challenges for the future?
10. What are the targets for the future?

B. Questionnaire

The questions that will be presented in the questionnaire are:

1. Newspaper is a source of information that fulfills my daily information

needs

29
2. I am willing to pay a subscription fee for Mercusuar, which is still in

paper form

3. Mercusuar is a source of information that meets my information needs

4. I want Mercusuar to continue to exist as a newspaper in Central Sulawesi

5. I want Mercusuar to develop into a newspaper like the national giant

media group (Jawa Pos, Kompas)

6. I often use the internet to find sources of information/news

7. I prefer to read brief news (portals) and updates(latest) than long, detailed

and in-depth news like newspapers

8. I need to read detailed (complete) news even though it is slow to publish

9. The speed of the latest information is important to me even if it is brief

10. Detailed and up to date news investigations are important to me

11. I use the internet for more than 3 hours a day

12. I like to read news via the internet

13. I find it easier to read newspapers via the internet than newspapers

14. I have a social media account

15. I use social media to find information

16. I find it easier to get information through social media than reading

newspapers

17. I frequently use Instagram to find information

18. I watch YouTube live streams a lot to watch or get news

19. I use WhatsApp for gathering or exchange Information.

30
20. I get fast and updated information from TikTok

21. I prefer a newspaper that I can easily access (find) just in my hand

wherever I am and whenever I want

22. I know that Mercusuar has a digital version (electronic newspaper and

website)

23. I often read the digital version of Mercusuar

24. I am willing to pay a fee for a digital Mercusuar subscription

25. I am not willing to pay for a digital Mercusuar subscription, because I

can find another news media for free

26. Reading physical paper newspapers is more focused than digital

newspapers which are interrupted by lots of advertisements

27. The internet signal in my area is good enough to access the internet

28. Internet package subscription price is affordable for me

29. I doubt information that comes from the internet

30. Information from printed newspapers is more reliable than from the

internet

31. I rely on Mercusuar for information about Central Sulawesi

32. I want Mercusuar to have products on my Instagram account

33. I want Mercusuar to have products on my Facebook account

34. I want Mercusuar to have a news coverage product that can be watched in

the form of live streaming

31
35. It is more interesting for me to read the news or absorb information in the

form of viewing

36. News that can be watched is not boring and feels alive

37. I trust ads in print media more

38. I am more confident that advertising in digital media will spread more

quickly and widely

39. I prefer digital product advertisements because they are viewable

40. I like to recommend a product in my online communities

41. Advertising on social media can influence my decision to buy

42. A livelier digital advertising can better describe a product to me

43. The cost of digital advertising is cheaper than in print media

44. Digital advertising is more effective than in print media

45. Digital advertising have a greater chance of being deceived than in print

media

III.4.2 SECONDARY DATA

The secondary data consist of historical data of circulation amount,

advertising revenue, and income statement. These data are internal data that

collected from Finance Department and Marketing Department.

III.5 DATA PROCESS ANALYSIS

32
The data gathered from the interview and questionnaire will be analyze to find

the reason why Mercusuar’s financial performance and circulation amount

keep decreasing and digging the readiness of Mercusuar’s stakeholders in

facing digital era.

III.6 CONCLUSION AND RECOMMENDATION

The last stage of the consulting project would be the conclusion and

proposed recommendation. This will be done once the primary data has been

analyzed and the theories will be mapped.

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CHAPTER IV

RESULT AND DISCUSSION

IV.1 DATA GATHERING RESULTS

In Chapter 3, it has been explained that there would be data gathering in the

form of Interviews and Questionnaires Survey. Below are the results of the

exercise :

IV.1.1 QUESTIONNAIRE SURVEY

The Questionnaire survey is distributed to customer of Mercusuar. The

Questionnaire is distributed to 200 population as respondent and it is a

voluntary based survey, the period of survey is from February 16 to February

20, 2023.

A. RESPONDENT BY GENDER

34
Figure 17. Questionnaire Respondents by Gender

By gender, the numbers between women n men almost equal.

B. RESPONDENT BY JOB

Figure 18. Questionnaire Respondents by Job

By job, civil servants have the most amount with 35 %, followed with entrepreneurs

with 27,5 % and private employees 22,5 %.

C. RESPONDENT BY EDUCATION

Figure 19. Questionnaire Respondents by Education

35
By education , bachelor degree dominated with 49 %, followed by high school

degrees and below by 30 % and master’s degree by 21 %

D. RESPONDENT BY AGE

0-20
20-30
30-40
40-50
50-

Figure 20. Questionnaire Respondents by Age

By age, for ages between 30-40 dominated with 37.5 %, 20-30 22.5 %, 40-50 20 %,

ages 50 and above 15 % and ages 20 and under with 5 %.

36
IV.1.2 QUESTIONNAIRE RESULT

A. Bond with Mercusuar

Figure 21.Questionnaire Result Bond with Mercusuar

The Questioner shows that 73 % respondents are having bond with Mercusuar, it

shows that Mercusuar has a special place in the minds of consumers. The rest of 27 %

is coming from students and trader or informal sectors which somehow less bounded

with Mercusuar.

37
B. Print Media versus Online Media

Figure 22. Questionnaire Result Online Media vs Printed Media

The Questioner shows that 73 % respondents are prefer online media than printed

media, 27 % that choose printed media are coming from the wedge of civil servants

and older generation.

C. Mercusuar in Social Media

Mercusuar in
Sosmed
Not in Sosmed

Figure 23. Questionnaire Result Mercusuar in Social Media

38
69 % respondents want Mercusuar’s presence at social media, it shows that most

respondents already familiar with gadgets and connected to the internet in daily

activities.

D. Online Advertising

Figure 24. Questionnaire Result Online Ads versus Printed Ads

64,5 % respondents prefer online advertising rather printed advertising because online

advertising can describe and more convincing.

E. Types of Social Media Frequently Accessed

39
Figure 25. Questionnaire Result Type Social Media Frequently Accessed

IV.2. INTERVIEWS RESULTS

Interviews of the situation of Mercusuar was done to Mercusuar’s owner

(CEO) Mr. Tri Putra Toana, and Mercusuar’s journalist Mr. Aminudin at

February 16th 2023 from internal elements of Mercusuar. From the external

elements of Mercusuar we also got interview with Mr. DR. Ir. Sofyan

Bachmid, M.Si is an academic with a lecturer profession who has been a print

media business actor and a media observer in Central Sulawesi and Mr. Drs.

Farid Ja’far Nassr who is a loyal reader and subscriber of Mercusuar.

Print media still has an advantage over online media, being more valid and

accurate. But along with the times and technological changes, print media has

fallen. However, the owners of Mercusuar have confidence that print media

40
will not disappear and will still be needed by the community. They realize that

print media will transform into online media, but from the experience of

existing online media, it is still difficult to survive. Because online media is

still unable to provide income and Gen Z is not the age of financial decision

makers. Meanwhile, to be involved in social media where Gen Z interacts

requires skills and investment while the results will not be felt immediately.

Mercusuar already has a web and e-paper version, but it is still free.

Mercusuar still survives because it can still rely on history and good relations

with the local government.

Several activities were tried, such as trade fairs and various activities to show

the existence of the Mercusuar in Central Sulawesi. But until now it still has

not provided significant financial results.

The owner also said that the difficulty in making this transformation is due to

the lack of human resources who are qualified in terms of skills and mindset

in the digital field. There is a lack of creative thinking resources in the

region. So, we had to import resources from outside Palu. According to the

owner, of course, if I want to transform this company with digital as a whole,

I must cooperate with partners engaged in digitalization who have proven to

be able to monetize it so that it becomes a digital product that makes money.

And of course that requires the courage to invest a large amount of money in

the midst of declining financial income. The owner's dilemma was that he

was hesitant to invest a significant amount in digital transformation, but the

41
longer he didn't make the decision to transform, the more Mercusuar's

revenue declined.

Interview with Mr. Sofyan Bachmid, M.Si and Drs. Farid Ja'far Nassr with

some notes. Mercusuar has an inherent and long history in Central Sulawesi,

so many parties hope that Mercusuar can survive despite experiencing

difficulties in the face of changing times. Within 10 years, most of the print

media in Central Sulawesi could not survive, either closed or transformed

into online media. So according to them Mercusuar must transform to digital

products. As users, they currently prefer short and up-to-date news such as

portals. Then news that can be accessed only in the palm of their hand,

whenever they want. Especially where they can interact with the news, for

example through news obtained by the world of social media such as

Instagram, YouTube live streaming which makes them feel more alive and

clear in obtaining information or reading the news. They want the Mercusuar

to be present in the products they enjoy in the digital world. They also hope

that Mercusuar will continue to exist and remain the King of Media in

Central Sulawesi, because Mercusuar is also one of the historical icons of the

establishment of Central Sulawesi. However, according to them, Mercusuar

definitely needs to work hard and there will be a lot of money spent to build

a complete digital product or convergence. Given the resources in Central

Sulawesi are still low in terms of human resources, infrastructure, equipment,

and facilities for skill development in the field of digital media technology .

42
IV.3 DISCUSSION

The problem identification in this consulting project is that for the last 5

years Mercusuar has experienced a decrease in revenue although it has not

caused significant financial difficulties for the company, but the company must

adjust expenses with company income.

We elaborate with theories in Chapter 2 :

Ansoff Matrix

By looking at the circulation of Mercusuars which continues to decline

continuously, it can be said that the market for Mercusuars is getting smaller

over time. From the results of the questionnaire we conducted, the market for

Mercusuars is among those aged over 50 years and among civil servants.

While Central Sulawesi demographic data from BPS shows that 72% are under

40 years old.

2020 Population Projection (Women + Men)


(Thousand People)

REGION: CENTRAL SULAWESI

0-4 2020 326,6

5-9 2020 293,33

10-14 2020 289,77

15-19 2020 288,14

20-24 2020 264,72

25-29 2020 259,15

30-24 2020 260,45

43
35-39 2020 248,01

40-44 2020 219,22

45-49 2020 179,49

50-54 2020 142,76

55-59 2020 109,88

60-64 2020 78,91

65-69 2020 55,16

70-75 2020 38,12

75+ 2020 43,27

Jumlah 2020 3096,98

Figure 9. Central Sulawesi Population Projection (Women+Men)(BPS,2020)

These are all generations that are connected to gadgets and are used to

scrolling in social media.

This is a market segment that currently is not touched by Mercusuar. And

the existing product of the Mercusuar, namely the printed newspaper, cannot

be included among Gen Z and millennials. For this reason, Mercusuar must

create a new product that can be accepted by them, namely communicating

through social media.

If you look at the ansoff matrix quadrant, this is in quadrant 4, namely

diversification. Indeed, this is the area with the highest risk, because we are

offering a new product in a market that we are not familiar with. It takes more

44
adaptation and effort to master a new field. This includes related

diversification, because this is still in the same area, only the media is different.

Mediamorphosis

In terms of mediamorphosis, Mercusuar has been transformed in 3 stages.

In coevolution, Mercusuar has carried out a transformation from only print

media to now also having digital products in the form of web and e-paper. By

running 3 types of media at once, Lighthouse also runs media convergence. In

running media convergence, Mercusuar is having a complexity.

Media Convergence

Transformation towards media convergence is a must for print media to

survive. Selection of media transformation models that are appropriate and

adapted to the needs and conditions of print media also determines the

achievement of media convergence.

The essence of convergence in this case is the unification between

information and communication technologies. Convergence makes it possible

to enjoy various kinds of services such as broadcasting, telecommunication and

internet services in one integrated device.

Convergence Continuum Implementation

1. Cross Promotion

Cross promotion is used among several media. It is a solution to

overcome the trend of declining advertising in print media.

45
2. Cloning

Content settings between products. Both print and online are carried out

by cloning content from each other. It's just that in the online the news content

is presented faster (real time) and the news is concise. But different with the

printed , news content is presented with a more dense investigation.The printed

content is of course much more complete and the presentation is complete with

multi-angles. Whereas the online version is more concise, presented faster and

sequentially on web. From the quotation above, it is clear that printed

newspapers have much more discussion satisfying than accessing digital

versions of media can be satisfying the thirst of the reader for a deeper

understanding. Even television and online media do not often provide this

advantage. However, the presence of the online can strengthen Print media.

Content originating from Print stands can be accessed through various

platforms so that people who are already technologically literate can access

web with services through the new media platform.

3. Coopetion

At this stage is meant stage when converged media entities cooperate and

compete at the same time. The pattern of cooperation or concept between the

printed and online. Both of them complement each other with patterns cross

media. The simplest way, there is navigation from print edition to online, and

instead there is a teaser as navigation to the print edition. Because they

were created by the same institution and with the same goa. One form of

cooperation is in terms of content. Content originating from the printed

46
Mercusuare can also be accessed through the online Mercusuare with an

identical format. Mercusuar Multimedia was born to strengthen the content of

the printed Mercusuar. So Mercusuar online is demanded to make a

breakthrough to provide another form of content owned by Mercusuar.

With the convergence policy, Mercusuar's management offers a package

advertising system that allows advertisers to place advertisements not only in

local media circulating in certain areas, but also to advertise their products on

shared pages with uniform content circulating nationally. In addition to

packages between local print media, Mercusuare also implements advertising

packages between different media platforms. For example, an advertiser can

pay a package price to display their ad in both the Mercusuar and

Mercusuarnews.com newspapers. This converged advertising system is also

coupled with brand recognition and brand loyalty among the audience through

cross-promotion and cross-selling. At the same time, they significantly raise

the barrier for new businesses trying to break into the media market, thereby

limiting competition to firms that have already converged.

Through online media, news can be delivered faster and in real-time with

a concise form and a more popular appearance so that the audience is

interested in reading. Online media can also work for cutting distribution

channels so that it is easier, cheaper, and faster to reach the readers. Thus, the

Mercusuar newspaper can reach a larger number of audiences and target

markets. The use of online media in the contents of the Mercusuare newspaper

does not necessarily erode the existence of the Mercusuare newspaper, because

47
the functions implemented between these multimedia collaborations are

complementary.

4. Content sharing

Media convergence is done based on gathering information and

distributing information efficiently. Although each local newspaper has a

different newsroom, the news obtained by the Mercusuar newspaper in certain

areas can be repackaged and adapted to be published in the Mercusuar

newspaper in other areas, as well as packaged in digital format in the Online

Mercusuare. In addition, according to Dailey (2005), content sharing

cooperation also allows the newspaper networks that work together, in this

case the local Mercusuare and the Online Mercusuare, to carry out financing

cooperation so as to produce production efficiency and product optimization

because the news content is increasingly diverse and according to needs.

market, especially local consumers.

In terms of news production, the Mercusuar daily has also implemented

a newsroom that is converged between the online media Mercusuarnews.com

and the daily print media Mercusuar which produces national content. In one

newsroom, there is reporter in charge of covering news that is also multimedia

in nature. In every news coverage, the number of reporters sent can be only one

person who acts as a journalist, as well as a cameraman, but can produce news

to be published in various media. It's different from before, when each different

media needed one reporter and one Kemerawan for one media. Apart from

reporters, there are several editors who are in charge of editing and sorting the

48
news from these reporters according to the media used. Thus, only one

production process is needed to produce various kinds of news published in

various media.

5. Full Convergence

Convergence becomes a reality when the media industry synergizes,

coordinates and synchronizes between different platforms under one

ownership. So that what is produced from this pattern of cooperation is full

convergence. Because the convergence that is being carried out is not partial,

in other words, convergence on a large, medium or small scale. The steps taken

by Mercusuar are for survival and for better service to the community. For this

reason, the concept that will be applied in the development of Mercusuar

products must be adapted to technological developments by adapting and

prioritizing innovative and creative works.. In essence, a transformation does

not necessarily eliminate existing products, but continues to develop along

with new products. This means that new media products do not replace old

product. This philosophy seems to be used by the Mercusuar.

Present In Social Media

According to data released by APJII in 2022 on the Internet Content

Most Frequently Accessed by Central Sulawesi Residents which shows that

68.08% of the total population of internet users in Central Sulawesi or around

1.5 million Central Sulawesi residents choose social media as the type of

digital media that is often accessed. This means that the revenue lost in recent

49
years is a new market that has not been touched by Mercusuar due to changing

times and consumer behavior. So, inevitably Mercusuar must be present in the

form of social media products which are new products in order to interact with

them. That means Mercusuar must diversify, because this is a new product

with a new market. Choosing the right type of social media to develop will

help minimize the risk of new business decisions. In accordance with data

released by APJII in 2022 on "Assessment of Central Sulawesi Residents on

How Important the Internet Functions" shows that Central Sulawesi residents

use the internet to access social media. Meanwhile, accessing

news/information/online media is ranked 4th. This can be supporting data

because Mercusuar, although it has made digital products in the form of e-

papers and websites, has not been able to make significant money and even its

income continues to decline. Mercusuar must be able to package information

or news packaged with the right type of social media content. Referring to the

answers to the questionnaire results, 69% of 200 Mercusuar reader respondents

prefer to use Instagram to find information, 65% use Youtube, and 50% use

TikTok. Reinforced by data released by We Are Social on the katadata web in

2022 about the Social Media Platforms Most Used by Indonesians shows that

whatsapp is ranked first, instagram is ranked second, facebook is ranked third,

and tiktok is ranked fourth. However, the whatsapp application cannot be used

as a platform for content media, whatsapp can only be used to spread links,

besides that fellow whatsapp users use cellphone numbers to be able to spread

information to each other. While cell phone numbers are private. That is why

50
Instagram is the right type of social media for Mercusuar to create its digital

products, because Instagram accounts do not require a cellphone number to be

able to interact, but simply by having an Instagram account.

If Mercusuar does not create its products that are accessed through social

media, it means that Mercusuar does not interact with the market generation

under the age of 40 which is classified as young, so it is likely that Mercusuar

will slowly be distracted and forgotten over time and eroded by technological

developments and changes in market desires due to changing consumer

behavior so that the function of the media changes.

From the results of the interview with representatives of the editor and

owner. They do realize that it is imperative for them to transform digitally.

However, the owner's concerns such as how to take the right steps in the digital

transformation process are reasonable given the limited resources and facilities

for digital transformation in Central Sulawesi. If examined with Ansoff Matrix,

diversification will cause an increase in business risk. So, the concerns of the

owner of Mercusuar are normal. However, the data review and analysis from

the questionnaire will help choose the right steps in this transformation

process. Statements from users during interviews can also be used as clues for

market analysis, such as what the wants and needs of consumers or readers of

Mercusuar in this Central Sulawesi. The theory of media transformation to

digitalization with mediamorphosis and media convergence also helps to

choose the right steps in digital transformation.

51
So the owner's fears and concerns should have turned into a strong desire

for transformation

Building a digital product of more than 1 type of platform which is then

juxtaposed with the old product, namely print media, which can then coexist is

the implementation of the convergence concept which is the main concept of a

mediamorphosis. Where in it there is a coevolution which is now a form is

digital language that from written language in printed media. And ultimately

also has an impact on complexity where new ideas, new concepts, and new

creativity.

. The historical ties of Central Sulawesi attached to Mercusuar is a

strength for Mercusuar in the form of print media that is not owned by other

print media. So, by building its digital product and doing this convergence

strategy, it will make Mercusuar have almost no gap for its competitors.

However, to achieve the ultimate goal, the Mercusuar also needs to invest in

terms of human resources, infrastructure, and education and skill development

on digital technology to build a digital department that gives birth to the

Mercusuar's digital products later.

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CHAPTER V
CONCLUSIONS

V.1 BLUEPRINTS

Mercusuar has actually transformed towards a digital model, by creating a


web and e-paper. And it has also converged because it combines the digital version
with the printed version.

The results of the questionnaire also show that Mercusuar customers want a
Mercusuar presence on social media, with the most wanted social media being
Instagram and YouTube, followed by TikTok.

For this reason, we provide suggestions to the Mercusuar as follows:

1. Create a social media division by recruiting human resources who are


capable in this area.

2. Make comparative studies to other media that have already implemented


media convergence with social media as one of the platform and learn how to
monetize it.

3. Meanwhile, in terms of its implementation, the convergence model that


should applied at Mercusuar is to collect the news obtained, both from print
journalists and online teams into one newsroom or better known as the newsroom
convergence model. The concept of the newsroom convergence model is to collect
news scripts made by journalists from different platforms into one production space.
In this case news production at Mercusuar, both printed news scripts and materials

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from the Mercusuar Digital team are put together in one newsroom (single
newsroom). This is intended to make it easier for online editors to edit manuscripts
before they are published on the website. As for the workflow for the daily newspaper
Mercusuar, it begins with an editorial meeting which is held every afternoon with the
aim of planning the content to be published.

4. However, in its implementation, Mercusuar should also adopted a


newsgathering convergence model, in which the concept of this model is that
journalists are required to achieve a multitasking level. Even though there is already a
division of jobdesk, in fact for certain events, journalists are required to be able to do
work for several platforms at once. This requires special training so that human
resources are ready to multitask.

5. In addition, consultant suggest that Mercusuar should also applies the


Content convergence model. The content convergence model is a convergence that
presents a variety of content. The output is presented in the form of multimedia,
which is a combination of text, images, audio, video, blogs, podcasts or slide shows.
The application of this convergence model can be seen in the content production
process from Mercusuar which is packaged in various types and distributed to various
platforms. This can be seen from the online platform which contains a combination of
text, video, audio and photos. While the print platform, which has a combination of
text content, photos, infographics and caricatures. This shows that Mercusuar is able
to package content into various platforms, both print and online.

V.2 CONCLUSIONS

Mercusuar is a newspaper company that has historical value attached to


Central Sulawesi, this is a strength for Mercusuar's position in the Central Sulawesi
print media industry. However, Mercusuar is now experiencing a decline in revenue
that is almost 0 due to inappropriate digital transformation steps and owner concerns
about developing digital products. Based on supporting data, analysis theory,
interview results, and questionnaire responses found a solution that Mercusar must

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carry out digital transformation by diversifying based on Ansoff Matrix theory in the
younger generation market, prioritizing by creating a platform on Instagram type
social media, which is implemented with mediamorphosis and mediaconvergence
strategies to remain the Media King in Central Sulawesi.

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REFERENCE

1. Fidler, R. (1997). Mediamorphosis: Understanding New Media. Thousand


Oaks: Pine.

2. Forge PressFidler, R. (1997) Mediamorphosis :Understanding New Media.


Thousand Oaks : Pine Forge PressDawes, John (2018). “The Ansoff matrix : a
legendary tool , but with two logical problem” SSRN 3130530.

3. Borders, Gracie Lawson.2006. Media Organizations and Convergence,


London : Lawrence Erlbaum Associates

4. Rore, A .I.(2019). Dari zamroed Paloe hingga Mercusuar : pasang surut surat
kabar di kota Palu (1932-1992)

5. Jefirantogie. (2020). Catatan 58 tahun perjalanan sejarah.

Website Sources :

1. https://databoks.katadata.co.id/datapublish/2022/08/12/pangsa-pasar-iklan-
radio-dan-media-cetak-ambles-pada-semester-i-2022

2. https://sulteng.bps.go.id/indicator/12/200/1/jumlah-penduduk-menurut-
kabupaten-kota-di-provinsi-sulawesi-tengah.html. Jefirantogie. (2020).
Catatan 58 tahun perjalanan sejarah.

3. https://sites.google.com/site/gragenews/clients.

4. https://www.bps.go.id/indicator/27/1225/1/proporsi-individu-yang-
menggunakan-internet-menurut-provinsi.html

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5. https://www.buolonline.com/2022/09/dari-23-juta-pengguna-internet-
sulteng.htm

6. https://databoks.katadata.co.id/datapublish/2022/02/07/5-saluran-iklan-digital-
yang-paling-banyak-diakses-konsumen.

7. https://databoks.katadata.co.id/datapublish/2022/02/07/daftar-media-sosial-
dengan-jangkauan-iklan-tertinggi-di-dunia

8. https://goodstats.id/infographic/media-sosial-yang-paling-banyak-digunakan-
di-indonesia-2022-JpfD1

9. https://databoks.katadata.co.id/datapublish/2023/02/02/sumber-berita-mana-
yang-paling-dipercaya-masyarakat-indonesia

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APPENDIX

Questioner “Perlunya Koran Mercusuar Bertransformasi Digital”

1. Koran adalah salah satu sumber informasi yang memenuhi kebutuhan


informasi Saya sehari-hari
2. Saya  bersedia membayar biaya berlangganan koran Mercusuar yang masih
bentuk kertas
3. Koran Mercusuar menjadi salah satu sumber informasi yang mencukupi
kebutuhan informasi Saya

4. Saya ingin Mercusuar tetap hadir sebagai koran di Sulawesi Tengah


5. Saya ingin Mercusuar berkembang menjadi koran seperti media grup raksasa
nasional (Jawa Pos Group, Kompas)

6. Saya sering menggunakan internet untuk mencari sumber informasi/berita


7. Saya lebih senang membaca berita singkat (portal) dan update (terbaru)
dibanding berita panjang, detail, dan mendalam seperti Koran

8. Saya perlu membaca berita yang detail (lengkap) meski lamban terbit
9. Kecepatan informasi yang terbaru penting bagi saya meski singkat
10. Investigasi berita yang detail dan terbaru penting bagi Saya

11. Saya menggunakan internet lebih dari 3 jam dalam sehari 


12. Saya senang membaca berita lewat internet
13. Saya merasa lebih mudah membaca koran lewat internet dibanding koran fisik
kertas
14. Saya memiliki akun social media

15. Saya menggunakan social media untuk mencari informasi


16. Saya merasa lebih mudah mendapatkan informasi melalui social media
dibanding membaca Koran

17. Saya rajin menggunakan Instagram untuk mencari informasi


18. Saya rajin menonton youtube live streaming untuk menonton atau
mendapatkan berita
19. Saya rajin bertukar informasi melalui WA
20. Saya memperoleh informasi yang cepat dan update dari Tiktok
21. Saya lebih senang dengan koran yang mudah saya akses (temukan) hanya
dalam genggaman tangan saya dimanapun saya berada dan kapan pun Saya
ingin 

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22. Saya mengetahui bahwa koran Mercusuar memiliki versi digital (Koran
elektronik dan website)
23. Saya sering membaca koran Mercusuar versi digital (koran elektronik &
website)
24. Saya bersedia membayar biaya untuk akun berlangganan koran Mercusuar
digital
25. Saya tidak bersedia membayar biaya langganan koran Mercusuar digital,
karena dapat menemukan berita lain dengan gratis
26. Membaca koran fisik kertas lebih focus dibandingkan koran digital yang
banyak tersela iklan 
27. Sinyal internet di daerah saya tergolong bagus untuk digunakan mengakses
internet
28. Harga berlangganan paket internet terjangkau oleh Saya

29. Saya meragukan informasi yang berasal dari internet


30. Informasi dari koran cetak lebih terpercaya dibandingkan dari Internet
31. Saya mengandalkan koran Mercusuar untuk mendapatkan informasi tentang
Sulawesi Tengah
32. Saya menginginkan Mercusuar memiliki produk di akun Instagram
33. Saya menginginkan Mercusuar memiliki produk di akun Facebook
34. Saya menginginkan Mercusuar memiliki  produk liputan berita yang dapat
ditonton dalam bentuk live streaming
35. Saya lebih menarik untuk membaca berita atau menyerap informasi dalam
bentuk tontotan
36. Berita yang dapat ditonton tidak membosankan dan terasa hidup
37. Saya lebih mempercayai produk iklan di media cetak
38. Saya lebih yakin bahwa iklan pada media digital akan lebih cepat dan luas
tersebar
39. Saya lebih suka iklan produk versi digital karena dapat ditonton
40. Saya suka merekomendasikan sebuah produk pada komunitas online
41. Iklan di social media dapat mempengaruhi keputusan Saya untuk membeli
42. Iklan digital yang lebih hidup dapat lebih menjelaskan sebuah produk kepada
Saya 
43. Biaya iklan digital lebih murah dibandingkan iklan di media cetak

44. Beriklan digital lebih efektif dibandingkan beriklan di media cetak


45. Iklan digital lebih besar peluang tertipu dibanding iklan di media cetak

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BIOGRAPHY
Bramanti Setiadi
Education :
BINUS Business School , Master of Management, Strategic Management, 2023
University Of Indonesia, Bachelor Of Economics-Economic Science, 2003
Professional Experience :
PT. Asoka Karya Mandiri, Director, 2015-Present (Jakarta)
PT. Lintas Media Asia, Director, 2007-2016 (Jakarta)
PT. Gametraco Tunggal, General Manager, 2004-2007 (Jakarta)
Goresh Graphic Design, Founder, 2002-2008 (Jakarta)

IZMA DWI ARIESTA TOANA


Education :
BINUS Business School , Master of Management Executive, Strategic Management,
2023
Tadulako University, Bachelor of Economics – Human Resource Management, 2016
Professional Experience :
 TRI MEDIA HOLDING GROUP, VICE PRESIDENT (2008-Present) -
Palu,Central Sulawesi

 PT. TRIYA RAMLINDO BERKAH BAITULLAH (2019-Present) - Owner -


Palu, Central Sulawesi

 CV. RAMLINDO UTAMA BERKAH (2010-Present) - Owner - Palu, Central


Sulawesi

 SULTENG RAYA NEWSPAPPER (2014-Present) - Commisioner - Palu,


Central Sulawesi

 MERCUSUAR PAPER PRINTING (2010-Present) - Commisioner - Palu,


Central Sulawesi

 MORO GROUP (2022-Present) - Owner - Palu, Central Sulawesi

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