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Exploring a new marketing strategy for Ulos, a traditional textile from North
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Conference Paper · August 2016

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6th Arte-Polis International Conference–“Imagining Experiences: Creative Tourism and The Making of Place” 1

Exploring a new marketing strategy for Ulos, a traditional textile from

North Sumatera
Ricardo Situmeang1 (Lecturer)
1
Del Institute of Technology, Jl Sisingamangaraja, Laguboti, North Sumatera, Indonesia
ricardo.situmeang@del.ac.id
Frederik Situmeang1,2 (Lecturer)
Amsterdam Business School, University of Amsterdam, Plantage Muidergracht 12, 1018TV,
Amsterdam, The Netherlands
f.b.situmeang@uva.nl
Nancy Margried3 (CEO)
3
Piksel Indonesia, Jl Jakarta No. 20-22, Bandung. Indonesia
nancymargried@gmail.com

Abstract
Ulos is traditionally hand woven cloth for Batak ethnicity. Nowadays, it is
very difficult to find traditional weaver and some methods and rules for
weaving Ulos are almost extinct and forgotten because the scarcity of
successors. The aim of this study is to identify a new marketing strategy for
Ulos by identifying the characteristics of the product, the artisans, the
production and the distribution systems of Ulos. The new marketing strategy
will maximize the value being captured by Ulos artisans that would increase
the welfare, innovativeness and create new interest to young generations to
learn the arts of traditional weaving.
Keywords : Ulos, Marketing Strategy, Technology

To be submitted to Arte-Polis – Conference Track:

C. Creative Strategy, Innovation and Policy Making for Heritage and Cultural Landscape

Background
Ulos is traditionally hand woven cloth of Batak ethnicity from North Sumatera. Ulos was not
only used as an ordinary cloth but later developed as ceremonial gifts to express acts of love
in traditional ceremonies in Batak culture. In the past, Ulos was a sacred object and valued
very highly among Batak communities. Ulos is made with manual backstrap looms, but after
the invention of the weaving machines which enables the production of inexpensive Ulos,
the hand weaving tradition is slowly fading away. Ulos as one of the Indonesian cultural
heritages may be preserved with a proper marketing plan and true understanding of the
products, the makers, and its buyers.

Figure 1 Ulos Weaver with manual Figure 2 Ulos weaver without

backstrap loom. Field Survey, 2016
machine production. Sources : Figure 3 Ulos with electrical
machine production. Sources :
Field Survey Samosir
Field Survey Balige, 2016
Island,2016
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Give the waving fee

&
Weavers Give the yarn and materials to wave
Weavers
Collectors
Give the product (ulos)

Sell the product (ulos)

Buyers

Flow Diagram I. Sources : Field Survey, 2016

In order to be able to develop a marketing strategy, one should able to consider characteristic
of Ulos, the artisans, production system and distribution system. For the current practice,
mostly artisans very dependent to collectors who provides them materials for weaving. After
the artisans accomplished their weaving, they sell it back to their collectors. These collectors
will sell it again at a higher price to the end buyers. This practice has existed for so long and
leave the artisans very poor. Besides manual loom, Ulos as well can be made through
machines and printing which creates competitions tougher. Therefore, to develop new
marketing strategy we should try to map the distribution system from artisans, collectors, and
end buyers and see what the role of policy makers to help the artisans. In a business
ecosystem, Ulos weavers role is necessary and vital. However, collectors also have a critical
role as a provider for yarn, woven material so supply materials more or less depending on the
collectors. The role of the collectors as a provider of yarns and capital, also become
important since they invest their funds in advance to buy materials to work on the woven. At
this point, it is very important first to identify several types of collectors because not all
collectors exploit the weavers for benefits.

Flow Diagram II. Sources : Field Survey, 2016

It must then be carried out in-depth studies to illustrate how the real condition of the sales
process to end buyer and how the market system formed. This information is important to
explore what components need to be added and what marketing strategies that can be offered
in favor of the weavers. One concept that is offered is a marketing strategy with the online
system. The use of online platforms for weaving Ulos sales is expected to contribute in
bridging weavers to buyers directly. In this study, it is necessary to do a survey on the
experiences of weavers and buyers to identify the ideal marketing.

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Purpose and Research Question

The aim of this study was to explore a new marketing strategy of Ulos in North Sumatera.
This study desired to map the current customer behaviors and experience with Ulos, the
current resources capabilities of Ulos artisans, the production process of Ulos and match the
resources capabilities and consumers expectation as a new marketing strategy that can
transform Ulos from a simple object from an experience ceremonies to an experienced
product.
Therefore, the research question for this study are :
1. What are the relevant factors to consumer behavior?
2. What are the consumer desired and expectation of Ulos.
3. What are the resources capabilities and the production process of Ulos that support
marketing strategies.
4. What are possible Ulos Marketing strategy?
5. What would be the online platform that suitable to support marketing strategy?

Theoretical Framework
Consumer Buyer Behavior
Consumer buyer behavior refers to the buying behavior of final consumers – individuals and
households that buy goods and services for personal consumption. Consumers buy goods and
service on a daily basis, and consumer buying behavior model is the focal point in marketing
strategic decisions. Organizations who intend to sell their goods or services have to be able
to understand what consumers would buy, where they buy, how and how much they buy
when they buy and why they buy.
The central question of marketing strategy is to understand how consumers would respond to
various marketing efforts the organization might use. The starting point is the stimulus-
response model of buyer behavior shown in Figure 1. The figure shows that organizations
can benefit from the social environment, technological advancements, and economic growth
to sell their products. Marketers can also develop stimuli such as product, price, and place.
All of these stimuli enter consumers mind, and depending on their characteristics and
internal decision process; the consumers would produce certain responses. Therefore, it is
imperative that before this paper discusses the recommended combination of marketing
stimuli for ulos artisans, it should first understand the characteristics that can affect consumer
behaviors.

Figure 4 Model of Buyer Behavior. (Source: Kotler and Armstrong, 2012)

Consumer purchases are influenced strongly by cultural, social, personal, and psychological
characteristics. Most of the time, marketing managers would not be able to control these
factors. However, they should take these factors into account when designing their marketing
strategy. These factors are listed and illustrated in Figure 2.

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Figure 5 Factors Influencing Consumer Behavior. (Source: Kotler and Armstrong, 2012)

Evolution of Marketing Views: Marketing an Experience

The marketing view started by focusing on the product based view. Here organizations
attempt to offer the company’s product in the best and most profitable way possible by
optimizing the marketing mix based solely on the product that they create. Here the focus of
the whole marketing effort is the product itself, and the marketing strategy revolves around
the product.
However, as competition grew, more producers would be able to create similar products with
similar qualities. Consequently, the companies would spend more effort on enhancing their
products even more by heavily investing in new technologies and innovation, while on the
other hand, consumers would have more options for products and would demand a lower
price from the producers. Consequently, the organizations would have to reduce their margin
while the costs of innovation are increasingly expensive.
Then the marketing view evolved to the market-based view. Here organizations attempt to
segment the consumers into different types and identify the characteristics of each different
segment. Organizations then consider different customer needs and target the best segment
that best fit into the organization own characteristics. Therefore, the focus of the marketing
efforts shifted from the product to the market.
The problem with a market-based view is that firstly, competition in different segments may
still intense, thereby forcing the business to split their limited resources into research and
development of products that are geared towards different segments. Consumers are still in
control because they can freely choose whichever type of product that they want to consume
because they have many options of alternative companies in the same market segment.
Because of the limitations of the previous views, business should pursue the experience
based view. Here the organizations attempt to provide an emotionally positive experience to
customers by managing consumer interactions with the company or brand. The organization
takes a holistic view of consumer interaction with the company and manage experience with
the stimuli, consumers’ consideration process, product experience, and after sales
experience, therefore, the control is shifted from the consumers to the company. Here the
product is merely one step in the consumer experience process as the mediator of the
relationship between the company and the consumer.
In the experience-based view, the role of ICT is very crucial in managing consumer
interaction. In the consideration phase, consumers should be able to access a website that can
explain the product offerings of the company. This website should also be able to guide
proactively the individual consumers to the right products that can fulfill their own personal
needs and record the consumer’s preferences. All of the complicated procedure of creating
the product, fulfilling the order and sending the order to the consumer’s doorstep are done
automatically and all hidden from the consumer, streamlining and simplifying the buying
process.

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Methodology
Research methodology used in this study as follow :

Research Method
This study conducts qualitative research, qualitative methods have a prominence on a kind,
interpreting and observing data in a natural set and with a sort of insider’s view. A qualitative
approach is more suitable to accomplish the purpose of this research since this study is
researching what factors are affecting on Ulos marketing strategy, since the fact that beliefs,
observations, ideas and point of views would be hard to assess in a quantitative way.

Data Collection
The study will use Participatory Action Research. Participatory Action Research (PAR)
provides a means to measure the results of the initial goals of research and identify the
critical elements in a project to promote the desired result (Simba, 2010; Mutambi, 2011).
PAR approach is a collaborative approach involving all partners and stakeholders in the
process of gathering research data. PAR approach has advantages; this approach is able to
reflect the experience of the parties directly concerned and directly affected by the issues in
the community. This method is a very convenient way to build and strengthen the
understanding of the stakeholders and SMEs to determine device/tool that can be used to
build a movement of change. Several methods of gathering information used in the research.
PAR approach include:
a) In-depth interview.
b) Focus group discussions (FGD)
c) Photographs and video documentation

Participants
Ten in-depth interviews were performed which included participant of five ulos artisans and
five Ulos business owners in North Sumatera area from January to March 2016. The present
study used a participatory action research (PAR) approach to explore the internal factors of
Ulos. Depth interview was conducted in March 2016 in Samosir and North Tapanuli District
to explore the depth and nuances of opinions regarding factors affecting the development of
Ulos (i.e. raw material, marketing, partnerships, technology, capital, institution’s assistance,
cooperative, and coordination among institutions).

Data Analysis
There are two forms of analysis when employed to empirical data, namely within-case
analysis (Miles and Huberman, 1994). Within-case analysis is argued to compare the
collected data against the theory used. Cross-case analysis compares the data from different
cases with each other.
The previous theoretical discussion acknowledges the importance of marketing stimuli in the
form of product, price, place and promotion (marketing mix), marketing ulos merely as a
product by realigning the marketing mix offering might be suboptimal. Considering the
importance of lifestyle in the society, and the probable changes in values in younger Batak
generation would significantly change the role of ulos from product to an experience good.
The new marketing strategy should adopt the experience based view and combined with an
automated system that manages consumer experience with ulos and becomes a source that
can inform changes in consumers preferences and demands based on the information that the
consumers provided when ordering new products.

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Cultural Factors
The usage of Ulos as a source of warmness since most Batak were living on cold mountains.
This natural condition makes them create something that able to give them warmth. Because
Ulos only used as an ordinary cloth but later developed to a symbol of love, traditional
ceremony requirements and society structural system symbol. Even Ulos is believed to have
magical religious power and thus considered 'sacred,' the patterns of Ulos, which have their
own respective meaning in accordance with the characteristic, condition, function, relation
and also based on the giver and the receiver. A traditional ceremony like a wedding, birth,
death and other rituals will never run without Ulos. Ulos is normally worn draped over the
shoulder or shoulders, or in weddings to bind the bride and groom ceremonially together.
However, the coming of machines and new trends has changed the characteristics, patterns,
and colors of Ulos. Some prominent fashion designer has introduced new patterns and
purpose of Ulos that is wearable on the daily basis. This culture shift as well can give
important information in designing a different marketing strategy for different segments
tailored to their specific needs. The other factor is occupation, wealth, income, and
education level. Different social class and prestige are expected to have certain behavior
towards Ulos.

Social Factors
Social environment as well has affected our buying behavior. New brands subjected to strong
social influence must find ways to connect to public figures – people within a social group
who, because of their special skills, knowledge, personality or other characteristics exert
social influence on others. When these people perform a particular action or adopt a
particular product, it may have a profound influence on others within the social group. An
Indonesian prominent presenter, Najwa Shihab recently wore Ulos Ragi Hotang while
interviewing two sons of Indonesian president in her show, Mata Najwa. As Najwa herself is
not from Batak, her pictures virally discussed and shared among Indonesian netizen. The
next day, the demands for using Ulos for fashion increased significantly as mostly Batak
women stored this Ulos inside their storage. Nowadays, new design, materials, motif and
pattern of Ulos are created to accommodate market demand. With the advancements in the
information technology, the online social network also has a growing influence on
consumer behavior. It gives an opportunity for marketers to establish virtual relationships
with their customers through information available on the online social network. By this,
consumers and marketers can have interaction to exchange information, communicate
requirements, recommendations, and share opinions.

Personal Factors
Ulos not only used in traditional cultural events but as also as everyday attire. Ulos may be
designed to be a dress, skirt or jacket was developed by some of the fashion designers.
However, diversifications of Ulos for fashion purpose still very little. There are needs to train
more weavers with the provision of particular yarns so the weaver will be able to innovate
with a new model of Ulos according to market needs. The introduction of Ulos as part of
Indonesian daily wearable attire has a different meaning for different generations,
occupation, and economic situation. Since a person lifestyle are expressed in his or her
psychographic, it captures a person’s activities, interests, and opinions. Therefore, Ulos has
passed from one generation to another generation and still relevant for today. However, the
weavers are more extinct, and the presence of weaving machines has replaced Ulos
production. In response to this, the willingness to collect and wearing Ulos is a matter of
choices, as it influenced by personality and self-concept.

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Psychological Factors
People choices in buying Ulos further influenced by the motivation, perception, learning, and
personal beliefs. Motivation is what will drive buyers to develop a purchasing behavior on
Ulos. It is the expression of need is which became pressing enough to lead the buyers to
satisfy. Usually, it is working at a subconscious level and is often difficult to measure. To
increase the sales of Ulos and to encourage consumers to purchase, some Ulos weavers and
collectors has influenced conscious or reinforce a need in the consumers mind that develops
a purchase motivation. Product diversification into different patterns, motives, colors, and
purpose can attract motivation of buyers to purchase Ulos.

Proposing a new marketing strategy for Ulos

The marketing view started by focusing on the product based view. Here organizations
attempt to offer the company’s product in the best and most profitable way possible by
optimizing the marketing mix based solely on the product that they create. Here the focus of
the whole marketing effort is the product itself, and the marketing strategy revolves around
the product. At this moment, we analyzed that Ulos artisans seem to focus solely on product
based view, without taking into different account sub-culture in the social class of their
consumers.
However, as competition grew, more producers would be able to create similar products with
similar qualities a lower price. Consequently, the business would spend more effort on
enhancing their products even more by heavily investing in new technologies and innovation,
while on the other hand, consumers would have more options for products and would
demand a lower price from the producers. Artisans would have to reduce their margin while
the costs of innovation are increasingly expensive.
In addition to this, many Batak consumers seem to have other options to choose other
contemporary cloth such as contemporary clothes or Batik, a Javanese traditional fabric or
even different kind more popular type of weaving like Songket from West Sumatera
(Padang) and South Sumatera (Palembang). Ulos lose its position as the main fabric used by
Batak people daily and at this moment its use is only limited to traditional ceremonies. Even
though the quality and designs of the ulos can be improved, if the artisans are unable to
appeal to their consumers, they would keep on losing their market share.
A way to understand the consumers is through acknowledging different consumers types and
try to fit the product to the right consumer segment. Here, ulos producers may adopt the
market-based view. With this view, organizations attempt to segment the consumers into
different types and identify the characteristics of each different segment. Organizations then
consider different customer needs and target the best segment that best fit into the
organization own characteristics. Therefore, the focus of the marketing efforts shifted from
the product to the market.
From our observation ulos consumers can be categorized into two main segments, i.e.
traditional users, which are mainly older generation Bataks who live in the Tapanuli area,
and non-traditional users, which are mainly cosmopolitan individuals who are younger and
eager to express their self-actualization as a person who like to wear ethnic fashion. At this
moment, the marketing strategy of ulos seems to be limited to cater the traditional Batak
consumers for traditional ceremonies. Consequently, the use of ulos is only limited to
traditional uses. In order to survive, the artisans should also cater the non-traditional
consumers, which would expand their potentially market to non-Batak people. Ulos artisans
should also open themselves to innovate a new product type such as jackets, bags, or other
fashion items that would appeal to the non-traditional consumers.
However, the market-based view can be easily copied by others which would lead to intense
competition that forces the artisans to reduce their margins. While they have to split their
limited resources into research and development of the new products at the same time. In
market-based view, consumers are still in control because they can freely choose whichever

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type of product that they want to consume because they have many options of alternative
companies in the same market segment.
Because of the limitations of the previous views, artisans should pursue the experience
based view. Here the artisans may attempt to provide an emotionally positive experience to
customers by managing consumer interactions with them. The artisans can take a holistic
view of consumer interaction with them and manage experience with the stimuli, consumers’
consideration process, product experience, and after sales experience, therefore, the control is
shifted from the consumers to the company. Here ulos is merely one step in the consumer
experience process as the mediator of the relationship between the company and the
consumer.
The focus of the marketing effort is now on consumer experience. Ulos artisans may provide
a tool that the consumers can access (online) to customize and personalize their ulos.
Through this tool, the consumers can also ask the artisans to transform their ulos into any
type of products based on the consumer’s specifications. This way, the end product is not
only limited to cloth but also fashions, furniture, household items which would also open the
market of ulos artisans to industrial or B2B consumers. Another experience product that can
be sold is for the consumers to experience the weaving process in the artisans’ location.
The artisans’ consumers should be able to access the artisans and place their order
conveniently from any place. Therefore, the right place for sales when adapting experienced
consumer view should not be limited to traditional brick and mortar outlet, but also online.
Through this platform, the price of the product will be automatically determined based on the
complexity of the requirements and the quantity of the ordered items. This process should be
based on an automated algorithm based on the input from the artisans.
Finally, we acknowledge the importance of opinion leaders and key figures that can be used
to promote ulos. Religious leaders such as the Church bishops and priests should actively
encourage the use of ulos. Personalities such as artists, tv presenters, and Batak political
leaders can also be used for this encouragement. In addition, there should be a local
government policy that promotes the use of ulos at least in the North Sumatra region. For
example, instead of Batik, the government can encourage the use of Ulos based clothing for
government officials and employees.

The Role of ICT in New Marketing Strategy for Ulos

According to www.specommerce.com report, in 2013, there were 4.6 million Indonesians
shopping online. This is expected to increase to 8.7 million people by 2016.

Figure 6 Chart Growth Number of Online Shoppers in Indonesia, Source spacecommerce.com

In addition, the report also shows that the biggest number for purchase has been done by the
female for clothing products. It shows that Indonesian has acquired the behavior on
purchasing fashion products online. The customers willing to pay for clothing despite they
can not touch the product with their hands and solely rely on the appearance of photos and
written information on online stores or other messaging channels such as BBM, Line, and

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Whatsapp. This is an encouraging trend, and it gives more confidence for textile and fashion
products such as Ulos to find their market through online channels.

Figure 7 Chart Top Buyers and Products for Online Purchase in 2014

In the experience-based view, the role of ICT is very crucial in managing consumer
interaction. In the consideration phase, consumers should be able to access a website that can
explain the product offerings of the company. This website should also be able to guide
proactively the individual consumers to the right products that can fulfill their own personal
needs and record the consumer’s preferences. All of the complicated procedure of creating
the product, fulfilling the order and sending the order to the consumer’s doorstep are done
automatically and all hidden from the consumer, streamlining and simplifying the buying
process.
Among many online stores, we observed there are three online stores with a focus on
handmade products which suitable for Ulos; which are Etsy.com, Novica.com, and
Qlapa.com. Between these three, Qlapa.com is the local marketplace based in Bandung West
Java. Etsy and Novica are the most advanced and experienced and they have special features
to increase serving the needs of the buyers and customers. As mentioned above, these two
marketplaces have field officers to assist traditional buyers from all over regions. As an
example, Novica, a marketplace based in Los Angeles USA, has an office in Bali Indonesia
to cater the artisans of whole Indonesia. Etsy has various online and offline artisans
communities around the world which initiated by Etsy partners and fields officers to create
forums for discussions, training, meet-ups and even offline pop-up markets and bazaars in
many areas. Based on the success stories of these two advanced e-commerce platforms, local
e-commerce such as Qlapa.com can adopt some of their strategies to reach and serve more
the artisans and the customers especially in this case, for Ulos.
From our interview, we found that some artisans that use traditional tools can weave intricate
design while artisans that use machines can weave bulk orders swiftly but the designs might
be limited to the machines capabilities. The platform should also be able to match the order
with the right artisans, and again this process should be automated, and the complexity is
hidden from the consumers. After the artisans have pledged to fulfill the order, the system
will then send an offer to the consumer based on the price set by the artisans. After the
consumer has agreed to the offer and paid the fee through the platform, the artisans will be
notified, and the products will be produced, packed, sent to a central location and delivered
to the consumers.
In the future when the same consumers come to the website again, the website should be able
to recall the previously stored preferences and provide unique offerings that are specifically
tailored to the consumers. In this way, the consumers would feel appreciated by the
company, and the re-purchase process became easier and attached to the same company.

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Consumer preferences data are also valuable for the company to develop future products and
services.

Conclusion
From this study can be found that Ulos artisans in North Sumatera should revisit their
marketing strategy and utilize advanced technology and to earn capital access. Ulos artisans
need to develop their human resource and technological capability, which lead to the
improved innovation capacity and competitiveness. Development of training programs and
courses aimed at small-business owners and their respective staff will ensure the small-
business owners are equipped with adequate business knowledge and experience. This is
important for them to run successful small businesses.
In this respect, the Indonesian government, especially at the district level has a crucial role,
such as providing technical assistance, soft loans, as well as facilitating the cooperation
information, between SMEs and local universities, government institutes, and business
associations. The horizontal coordination among government agencies, as well as vertical
coordination between the central and local governments in assisting SMEs, which
traditionally have been weak, should be strengthened.

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