A Dual-Market Strategy for Herbal SME Penetration: Digital Marketing and Logistics Efficiency in Export and Domestic Market

Abstract

This research examines the dual-market strategy within the herbal sector of Indonesian small and medium enterprises (SMEs). Indonesian SMEs have demonstrated steady growth in the export market; however, their domestic market penetration is constrained by cultural perceptions and inadequate marketing efforts. Logistical constraints and elevated shipping costs pose substantial challenges to sustainable export growth. This research employs a mixed-method approach to analyze three key aspects: the optimization efficiency of production and logistics to enhance export performance, the development strategies of digital marketing to address domestic consumer barriers, and the reduction of dependency on a single market through the implementation of a dual-market orientation. The findings are anticipated to demonstrate how SMEs in emerging markets can effectively balance international expansion as a source of innovative insights with domestic growth through the integration of digital transformation, cultural intelligence, and adaptive supply chain strategies. This study contributes by providing a framework for business development that links domestic and export competitiveness with SME resilience in the future. The dual-market strategy involves the export of goods, emphasizing logistics performance within the digital landscape. This approach is particularly relevant for SMEs in the herbal industry aiming to enhance logistics efficiency.