Study of Marketing Innovation of Aceh’s Patchouli Oil

Agussabti1, Indra1, dan Syaifulah Muhammad2

1
Lecturer at Agribisnis Departement of Syiah Kuala University and Aceh Perhepi
Board, and 2 Lecture at Chemical Technic Departement of Syiah Kuala University
Corresponding Email: indrazainun@unsyiah.ac.id

Abstract

90% of the world's need for patchouli oil is supplied by Indonesia where 70% of it was
originated from Aceh. However, the number now has decreased between 15% and 20%,
meaning that there has been a significant decline in Aceh patchouli production from
year to year. One of the main causes of this fenomena is that the price of Aceh's
patchouli oil is highly volatile and is determined by outside traders, such as the traders
from Medan. This study aims to examine the marketing innovation of Aceh patchouli
oil in order to generate a competitor for Medan monopoly market. This research uses
desciptive qualitative approach. Data were collected through interviews and Focus
Group Discussion (FGD) with patchouli farmers, Industrial Cooperation of Aceh
Patchouli (KINA), patchouli oil traders, community leaders, government, NGOs and
academics. The results show that the marketing chain of Aceh patchouli oil from the
past until now is started from patchouli farmers - collectors or cooperative traders –
Medan buyers (traders) – foreign buyers. The selling price is determined by Medan
buyers, while the farmer is only a price taker. The results also suggest several
Innovations, like improving farmers’ skills to create derivative products such as
patchouli alcohol, perfume, soap, lotion and mosquito repellent, etc. Those derivative
products can be sold in cluster outlets, online stores, showrooms, corporate/perfume
traders, drugstore, cosmetics stroe, and many others. Another innovation is that forming
a secondary cooperative. The cooperative can explore a new market opportunity such
as looking for a prospective foreign buyer. For that, good cooperation is needed in the
frame of quadro helix, i,.e, academics, businessmen, goverment, and society (farmers).
The above marketing system is believed to increase the demand for Aceh domestic
patchouli oil in order to compete with Medan monopoly market. Thus, farmers have
the option to sell patchouli oil at competitive prices so that it will increase their income.

Keywords: Marketing, Inovation, Patchouli Oil, and Farmers’ Income