Dihliza Basya (1), Maziyah Mazza Basya (2)
General Background: The Hajj and Umrah travel sector is facing intense competition with the rise of licensed and unlicensed travel providers. Specific Background: In the digital era, social media platforms play a crucial role in marketing strategies to attract prospective pilgrims, but these efforts must remain aligned with Islamic ethical principles. Knowledge Gap: Despite growing digitalization, there is limited evaluation of how Islamic marketing strategies are implemented and assessed using structured analytical tools. Aims: This study aims to evaluate the Islamic marketing strategy applied by a pesantren-based Hajj and Umrah travel company through the SERVO (Strategy, Environment, Resources, Values, Organization) framework. Results: Using qualitative methods—interviews, observations, and documentation—the study finds that while digital marketing has improved customer engagement and booking conversions, the company still needs to enhance service response, transparency, and strategic competitiveness. Novelty: The integration of SERVO analysis with Islamic values offers a unique approach to assess strategic fit in faith-based service industries. Implications: The findings highlight the importance of aligning digital strategies with Islamic marketing ethics and strategic responsiveness to ensure sustainable performance and trust in religious travel services.Highlight :
The study evaluates Islamic marketing strategies in hajj and umrah travel using SERVO analysis to improve competitiveness in the digital era.
Findings highlight the importance of optimizing social media, improving service response, and ensuring ethical alignment with sharia principles.
Adjustments to commission fees and target pilgrims are needed to support sustainable business growth.
Keywords : Digitalization, Hajj and Umrah Travel, Islamic Marketing Strategy, SERVO Analysis, Digital Marketing
Competition becomes one of the major problems for business owners around the world. Although the company offered different characteristics of services and products, business competition is still inevitable. As other businesses that always stand for the same sector, travel company organizing hajj and umrah services are also mushrooming in Indonesia. The growth of industrial sector, especially in this digital world, encourage the business actors to adapt to various possible changes that will occur to their sector, mean that their plans may be carried out in different way depending on the market demands and movements. Each companies that stand for the same business sector must still have differentiation because the needs of the market will grow continually. The strategies implemented in their business will significantly affect the company's ability to survive, generation by generation. The change of times requires the emergence of diverse market demands which companies must be well responded to them. Therefore, they absolutely should strengthen their strategies, especially in the field of marketing.
Currently, the implementation of digital marketing strategies in hajj and umrah travel company is urgently needed considering the strict competition and the increasing number of prospective pilgrims in finding reliable information and services of hajj and umrah. By this digital era, the majority of prospective hajj and umrah pilgrims, both young and elderly, are helped by the internet and social media utilization to get pivotal information about the performances of hajj and umrah. They can access information, check the company's reliability, compare the package prices, and monitor the customer reviews by hand-on. The need of information related to hajj and umrah travel planning causes the related companies to always carry out promotional activities. Promotion is an effort to communicate the benefits of a product and invite customers and everyone to buy the product[1]. The shifting of promotional activities from the conventional one to the digital ways has become a required thing to service companies for several reasons that relevant to the technological development, consumer behavior, and marketing efficiency.
The widespread of the digital technology use and internet has changed the way consumers search and obtain the required information. Consumers, nowadays, do more online researches before making a purchase include comparing prices and reading reviews also the testimonials. By digitalization, companies can post any promotional messages on the channels where consumers use the most, making them more effective in reaching the appropriate market. Therefore, by using an effective digital marketing strategy, travel companies can build a strong online assistance, make it easier for prospective pilgrims to obtain information and offer the service excellences. Additionally, digital marketing allows travel companies to reach more specific audiences based on demographic characteristics, behaviors, and interests. They can expand prospective pilgrims in a more personalized and relevant way through the advertisement on social media, educational content, or email campaigns. The companies, for instance, can set their advertisement to a family who has plan to perform umrah for a group or to an individual who interested in Islamic content from online platforms. Accordingly, the travel company not only reaches a broader market but also increases the prospective pilgrims to be customers.
Another urgency of digital marketing in this industry is the ability to build the trust of prospective pilgrims through transparency and continuous online interaction. In the Hajj and Umrah industry, reputation plays a vital role as prospective pilgrims invest large funds and need sense of certainty. Through digital platforms, companies can point out the previous customer testimonials, show travel documentation, and respond to the prospective pilgrims’ questions or worries handily. This can increase the company credibility and convince prospective pilgrims to select the services offered. The advantages of digital marketing also allow travel companies to communicate more efficient with prospective pilgrims, for instance through direct announcement about departure schedules, administrative requirements, and several tips of preparing for worship. This improves the quality of service and makes prospective pilgrims more comfortable and informed during the preparation process. Hence, digital marketing strategies are not only a promotional media but also an important part of customer service that strengthens loyalty and trust in hajj and umrah travel companies.
Interaction with customers has also become easier and more instant through digital promotions. By using social media, email marketing, or chatbots, companies can provide quick responses to customers’ questions and feedback, which increases engagement and builds stronger relationships with consumers. The flexibility offered by digital promotions allows companies to constantly update content according to market trends or needs, so that promotions become more dynamic and relevant. The digital economy advances nowadays, such as the use of social media to convey product information, create trade opportunities because the younger generation as digital native tends to be active on social media. Most of people are utilizing social media platforms every time and everywhere to catch up the updated information and meet their communication needs. The majority of social media platforms that they use the most include Facebook, Twitter, Instagram, etc[2].
In accordance, digital advertising has also become a trend in the digital era. This causes brand owners begin to employ digital platforms as current media of promotion and marketing. Social media has changed the way consumers interact and how companies offer their products as marketable opportunity[3]. Promotional strategies in the digital era through social media are more attractive and in demand by people who are increasingly live in digital world. The existence of social media is also a new opportunity to large companies as part of their marketing strategy. Moreover, marketing through social media influencers can also encourage consumers to buy products in a larger quantity[4].
In the context of digital marketing, hajj and umrah travel company also have to build trust and credibility, considering that prospective pilgrims need to trust in safety and quality of services offered. Therefore, it is important to carry out a digital marketing analysis in this kind of travel company. Through digital marketing analysis, companies can find out the type of social media content that catch attention and build customers’ trust as aforementioned, e.g: customer testimonials, travel documentation, and significant information about the pilgrimage travel preparation. Digital marketing analysis for hajj and umrah travel companies is important to understand the needs and preferences of prospective pilgrims in depth, considering very specific and competitive characteristics of the market. With this method, companies can identify the behavior patterns of prospective pilgrims, such as the information channels they use, the type of packages they are interested in, and the most popular booking times. This data is invaluable for designing more effective and targeted marketing strategies, so that companies can tailor promotions and offer service packages that correspond to the preferences of prospective pilgrims. Additionally, analysis on digital marketing helps travel companies understand the effectiveness of their digital counterparts. This allows companies to optimize advertising budgets, customize content, and reach audiences that have the most potential characteristics to become customers, resulting in more efficient use of resources and higher ROI.
Several studies discussed the implementation of digital marketing strategies in hajj and umrah travel companies are crucial to remain competitive in the growing industry. Various strategies including content creation, SEO, social media, and mobile applications[5] can be implemented to provide product information and build pilgrims’ trust to the travel company[6]. Since the digital marketing strategy has proven effective in strengthening brand image and maintaining customer loyalty, the explorations of integrating Islamic principles in the digital marketing strategy are still needed to meet prospective pilgrim needs in the competitive hajj and umrah travel industry. Therefore, this research is aimed to identify the implementation of Islamic marketing strategy in one of private hajj and umrah travel companies using the digital platforms and to evaluate it using SERVO analysis to achieve ‘Fit’ concept in the business development strategy. The locus of this research was selected since the company specified with pesantren-based environment, so it is interesting to research the professionalism in the field of Islamic marketing strategy in this digital era.
Islamic marketing refers to a strategic business discipline that directs the process of generating, providing, and shifting value from an initiator to a stakeholder where the Islamic contracts and the principles of muamalah (business) must be implemented throughout the process[7]. This indicates that the process of Islamic marketing must be in harmony with the terms of agreement and Islamic principles of muamalah. This is allowed as long as it can be guaranteed that the rules of Islamic muamalah are not be broken during the marketing transactions[8]. The current marketing approach views marketing as a science and art that guides the process of developing, delivering, and sharing value with customers while upholding relationships with stakeholders[9].
According to Hermawan Kartajaya and Muhammad Syakir Sula, there are four characteristics of Islamic marketing that can be marketers guide[8]:
The thesis or divinity (rabbaniyyah) is a strong belief that all human movements are always under the supervision of God. Therefore, all human beings are required to behave as morally as possible, refrain from uncommendable behavior such as lying, cheating, stealing, corruption, take other people's property dishonestly and so on. Muslims tightly hold to this belief so that it becomes a strong belief in their life. Every Muslim internalizes or becomes a physical manifestation of the values of faithfulness, which serves as a prevention to immoral business practices[10].
They mean all behaviors that adhere to widely recognized ethical standards. Honesty which is the essence of ethics present the true meaning of "God's will" that it is unchangeable. A dishonest person who mixes products, hoards goods, or takes the property of others in a fraud way absolutely also has an opposite feeling, but she/he succumbs to temptation and violates the ethics because of the temptation of the wickedness. Therefore, this serves as a guide for Islamic marketers to consistently uphold all speech and behavior in commercial relationships with clients, distributors, retailers, suppliers, and competitors[10].
It is defined as holding on to the truth rather than spreading falsehood. All the business transactions must be based on reality and refrain from prejudice against certain people, groups, or specific race. All actions are carried out in an honest way[10]. Islamic marketing is not a rigid, anti-modern, fanatical, or exclusive idea. Otherwise, it is an idea that can be adapted in advertising. Islamic marketers should present a refined, unpretentious, and clean image because it is very adaptable both in legal interpretation and its application to conventional marketing.
It signifies to kindness and appreciation for others. Marketing aims to improve people's living standards. Universal humanistic marketing is another area of expertise of Islamic law. Humanistic Sharia is developed by considering human beings, elevating their status and preserving the human qualities inherent in them. Islamic law was developed by prioritizing humanism, treating all people equally regardless of their status, race, or skin color.
The Islamic marketing mix is not that different from the marketing mix in general. The main difference lies in the way it is applied, because each component of Islamic marketing is applied from an Islamic point of view. There are 7 components of the marketing mix to make a successful business as the following brief descriptions:
1.Product is an important component of any marketing strategy. Everything that can be provided for people to buy, consume, or use in order to meet their needs and desires is considered a product[11]. In Islamic economy point of view, every product that will be traded must be halal and of high quality. It is prohibited when the company lowers the quality of the product to maximize profits. In addition, both sellers and consumers of products must agree on the quality of the product before it is traded[12].
2.Price is part of the market mix in Islam. Applying prices below market prices, engaging in marketing or pursuing profits without expensing, changing prices without changing the quantity or quality of goods, misleading customers by giving different prices to different customers, and spreading false information through the media are all prohibited. Islam emphasizes fair price payments and complying with supply and demand[13]. From an Islamic perspective, pricing is relatively simple. This is based on the value or price of a product, which should not be set in large multiples after deducting production costs.
3.Promotion used in the industry to introduce their products to the broader market of the product. A product can be useful, but if people are not aware of it, they will not know its advantages and, of course, will not be interested. This is why businesses need to do promotions to offer their products to a wider audience. From an Islamic perspective, promotion is an effort to provide accurate information to potential consumers about a good or service. Islamic teachings emphasize the importance of avoiding fraudulent activities and providing false information to potential consumers[14]. The best way for an organization to achieve its goals is through the use of technology that is convenient in this digital era.
4.Place is functioned to be an area of business and also be an area for customers to deal with product offerings and business. This can be referred to as a channel and distribution strategy. A distribution system or product distribution can provide a competitive advantage for a company. Distribution refers to the company's product distribution method. Determining the strategy and path that must be taken so that the product can reach the market can also be understood as a distribution function. The length or short of the chosen route must be carefully considered[15]. The distribution strategy must achieve a number of objectives, including serving customers quickly, maintaining quality, saving costs, and avoiding competitors. In addition, there are other factors that must be considered when implementing a strategy. This includes buyer considerations, which include considering the target customer, geographical location, and market size, product characteristics, such as whether or not the product is resistant or not and manufacturer considerations, which involve consideration of available resources[16].
5.People play significant roles in both producers and consumers in the marketing process. Islamic marketers must be honest and responsible for the goods they produce. Muslim marketers have responsibilities to protect and meet the needs of their partners in businesses, suppliers, workers, customers, and communities[17]. The Prophet PBUH advised to avoid gharar or speculative activities, harmful merchandise, dishonest business practices, and goods and services that are prohibited by Islam.
6.Physical Evidence has a great contribution to customers' decisions in purchasing and utilizing the service offered in the industry[18]. The service consumers also evaluate the quality of the services received, offering tangible evidence of their quality in a way that can be observed by customers, such as displays, pamphlets, staff uniforms, communication quality, comfortable waiting rooms, advanced equipment used, and so on.
7.A key component of the marketing mix is the process including procedures, mechanisms, and flow of service activities. The procedure also shows how goods and services are provided to the end customer. Among the basic principles of marketing for Islamic marketers are accountability, honesty, fairness, respect, transparency, and community. The Prophet PBUH showed his meticulousness in providing services. Goods or services that are handed over to customers are a trust that needs to be considered. So, after all, a well-designed process will facilitate the development of customer satisfaction[19].
Digitalization is the process of creating digital copies of analog objects. When a document is digitized, there are various advantages, such as ease of access, search, and indexing. Caleb T. Carr and Rebecca A. Hayes stated that social media is an internet-based platform that allows users to interact and presenting themselves, either directly or indirectly, to a wide or limited audience, and interacting with others[20]. Through social media, people can communicate, send messages in the form of text, images, audio and video, share content, and build networks. Social media is an online platform that also supports increasing market share for products and services. The existence of social media allows each individual to connect without distance and time restrictions, thus facilitating interaction between consumers and producers or distributors [21].
This qualitative study contains of explanatory writing and arguments used a case study approach. Case studies allow researchers to get a holistic view of a particular series of events or phenomena in natural setting[22]. By using this method, the researchers provides an in-depth and specific analysis on the marketing strategy that can be a valuable reference for other companies in related industry. Thus, this research evaluates the marketing strategy implemented in a hajj and umrah travel company and reveals whether the strategy was effectively implemented or not. This research was conducted in one of private travel company organizing hajj and umrah services (henceforth, mentioned AN Company as pseudonym) where is mainly located in Surabaya and has its branch offices several districts in Java and Kalimantan.
The The data were obtained from the individuals and employees who have knowledge about business strategies implemented in the AN Company. The researchers collected the required data from semi-structured interviews with the business owners and heads of the marketing department as well as with 12 company congregations. The researchers also wrote a report and took documentation from the observation of marketing activities both in actual acts and in digital platforms (AN Company’s Instagram and TikTok account). To achieve the data validity and reliability, the researchers carried out the source triangulation which the data were collected from various sources. The data then were processed to analyze through data reduction, categorization, synthetization, and interpretation.
Initially, Tthe company's Islamic marketing strategy is was analyzed using SERVO analysis. According to Fleisher and Bensoussan, SERVO analysis is a management tool that helps diagnose, build and evaluate a company's strategy through five elements: Strategy, Environment, Resources, Values, and Organization[23]. Although SERVO has similarities with other strategy models, it differs in that it emphasizes more the relationship between action and decision. SERVO analysis is beneficial for strategic applications in a variety of situations, but it does not mean that all companies in the same industry have to compete in the same way. This model seeks to achieve a good balance between the internal (elements S, R, V, and O) and external (element E) dimensions that influence the business strategy. Each element in the SERVO model has several components that can be analyzed separately, as well as the relationships between them[23]. This model clearly answers the need to create a fit strategic fit between strategy, environment, resources, values, and organization. To formulate and implement a successful strategy, companies need to clearly manage the interconnectedness between these five elements, namely structure and strategy, which are the main focus of many strategy suggestions in the early literature and practice.
The “Fit” concept is also very important in the application of this model. “Fit” refers to an ideal state in which all management decisions create consistency between the company's resources and capabilities as well as the external environment. In other words, a better fit will result in better performance, while a poor fit will result in poor performance. To achieve optimal alignment, the researchers sought to identify managerial decisions that create the necessary alignment, both in the short and long term.
An Company used the results of SERVO analysis to formulate marketing strategies that are in line with Islamic principles. For example, they develop a fair and transparent customer loyalty program, which not only provides benefits to customers, but also builds long-term, trust-based relationships. In addition, they also utilize digital technology to expand their marketing reach and improve service quality, while maintaining ethics in the use of data and communication. Product and service innovation is carried out in a manner consistent with Islamic values, ensuring that all operational aspects are in accordance with sharia.
By increasing number of competitions of hajj and umrah travel industry, AN Company realizes that long-term success is not only determined by financial strength or marketing strategy, but also by adherence to ethical and moral values. The following are the results of data collected from AN Company using SERVO analysis:
Strategy evaluation is the stage of the strategy management process where top management tries to ensure that the strategy they choose is consistent, appropriate and executable as well as a means to utilize feedback as input for planning new strategies[24]. In terms of performance, AN Company has several things that must be evaluated such as the last 3 years the conversion rates from social media profile visits to umrah package bookings over the past three years as presented in the Figure 1. This figure indicates the increasing value of conversion rate profile-to-booking:
Year 1: 5% conversion (50 bookings by 1000 profile visits)
Year 2: 6% conversion (120 bookings by 1500 profile visits)
Year 3: 6.67% conversion (120 bookings by 1800 profile visits)
[Figure 1. about here]
This gradual increase shows that the optimization of digital strategies, especially through social media content and improved communication indicated a good impact. , the marketing performance of hajj and umrah travel shows a conversion rate of prospective pilgrims of 5%, with 1,000 profile visits resulting in 50 umrah package bookings. While reaching a good number, the company has set a conversion target of 8%. This slight number which indicates the need for improvements to social media accounts, such as more detailed explanations of services, price transparency, and ease of the ordering process.
In terms of digital marketing budget, the researchers compared the ROI between using the digital and non-digital or conventional marketing strategy as illustrated in Figure 2. By using digital marketing, the company has spent IDR 10 million in a quarter, generating IDR 100 million in revenue from hajj and umrah booking packages with an ROI calculation of 900%. Meanwhile by using the conventional one, the company has spent IDR 15 million of promotional budget in a quarter and generated IDR 90 million in revenue (ROI=500%). Thus, this campaign is considered effective.
[Figure 2. about here]
By this calculation, digital marketing strategies have proven to be more financially efficient, generating higher returns at lower costs. This reinforces the argument that budget allocation to digital channels is a strategic decision that has a direct impact on profitability. However, since the majority of revenue comes from the advertisement on meta, companies are considering to reduce their non-digital marketing budget which has a larger comparison ratio compared to digital marketing. Moreover, in the context of Islamic accounting, it must be emphasized that every digital marketing activity carried out, including advertising budget expenditures and ROI reporting from digital campaigns, must be aligned with the principles of sharia accountability (hisbah). This means that reports on digital campaign efficiency such as an ROI of 900% of a promotional budget of IDR 10 million should not only be analyzed in terms of profitability alone, but also consider the values of honesty, fairness, and transparency as required in the sharia accounting system. Financial and non-financial reporting related to marketing, both internally (to owners and management) and externally (to stakeholders such as pilgrims, partners, or sharia auditors), ideally refers to the sharia principles: al-amanah (honesty), al-adalah (justice), and maslahah (public benefit). Thus, the application of digital marketing in hajj and umrah travel is not merely a promotional strategy, but must also be recorded and reported with sharia accountability. Therefore, integration between digital marketing strategies and Islamic-based reporting systems is important so that the Islamic values underlying the business are not only applied to product and service aspects, but also to aspects of transparency and financial accountability.
Marketing through social media is useful to increase visibility and affordability. In addition, the results of the customer satisfaction survey show that 85% of prospective pilgrims are satisfied with the information provided and the quick response on social media, while the other 15% feel that the follow-up information process is still slow. Based on the results of this survey, companies should improve response time by adding customer service personnel to provide faster and more satisfactory service. The consumer target that has been set by AN Company at least increases in 25%-50% every year. With many competitors that provide the same services that provide a variety of products and relatively cheap prices, it will make fierce competition between travel, which makes consumers more and more choices to compare the prices owned by AN Company with other cheaper travel. Therefore, it is necessary to reconsider the competitive strategy that has been designed, it is necessary to evaluate whether the strategy that has been implemented needs to be changed as a whole or the strategy that has been implemented only needs to be developed.
This second stage is the stage where an analysis is carried out regarding the relationship between the elements in SERVO analysis. From the interconnected elements of SERVO as presented in Table 1, it will be possible to determine the level of suitability of the strategy and the timing of its suitability. The relationship between the elements in SERVO at the AN Company is as follows:
[Table 1. about here]
a) Strategy – Environment: medium fit, normal fit
AN Company offers saving packages and saving applications to provide convenience for prospective pilgrimages which shows the fit between the company's strategy and market conditions. Companies must also keep up with market developments, especially in terms of price competition, by paying attention to competitors' costs and prices. The adjustments made make the company able to adapt effectively, so that it is considered to have a good fit (normal fit) between the strategy and the environment. This makes the researchers gave a normal fit distinction to the relationship of these 2 elements.
b) Strategy – Resource: tight fit, early fit
AN Company implements a differentiation strategy by offering products and services that are unique compared to other travel, supported by experienced workers and supervisors who have Islamic boarding school backgrounds, who support this differentiation strategy. Therefore, the researchers assessed the relationship between strategy and company resources as tight fit and early fit.
c) Strategy – Value: tight fit, normal fit
AN Company implements a strategic focus by upholding the value of pesantren-based environment, this is realized through congregational prayer activities, meals together between employees and employee visits to congregations that create a propinquity atmosphere. The researchers assessed the relationship between strategy elements and the environment as tight fit and normal fit, reflecting good integration between company values and practices carried out.
d) Strategy – Organization: medium fit, normal fit
AN Company has a clear organizational structure and a positive work culture, where staff members report to the division manager, who then reports to the company director. This structure is rarely changed due to the clear division of tasks, although it can be adjusted as needed. Thus, the duties and obligations of each division are clarified to prevent employee negligence. The researchers evaluated the relationship between strategy and organization as medium fit and normal fit, reflecting good alignment between the two.
e) Environment – Strategy: loose fit, delayed fit
AN Company faces stiff competition, especially from Sutra travel agent, which has an advantage as a supplier and can offer lower prices than other travel agents. This makes the researchers assigned the relationship between the AN Company strategy and market conditions as loose fit and delayed fit.
f) Environment – Resource: medium fit, normal fit
AN Company’s physical resources support employees in carrying out their duties, coupled with training and development to face tight competition. The company also complies with government policies, such as paying taxes and following post-COVID booster vaccine rules. The results of this analysis give a medium fit value.
g) Environment – Value: medium fit, normal fit
AN Company in facing the external environment, demands cooperation between employees to achieve common goals in line with the company's family values that create a comfortable and mutually helpful work atmosphere. However, in certain situations, employee self-interest can interfere with the company's values, so researchers assessed this relationship as a medium fit. To maintain the company's value from the influence of the outside environment, AN Company held activities such as lunch together, congregational prayers, and annual gatherings, which made researchers assessed this relationship as normal fit.
h) Environment – Organization: tight fit, normal fit
The work environment influenced by high competition encourages AN Company employee to work appropriately and quickly. A clear organizational structure and in accordance with the work description, along with employee development and training, help employees in dealing with change, so that the researchers provided a tight fit value. In addition, the relationship between environmental elements and the organization shows that the company does not need to make drastic changes, because most of the environmental elements support the organization, so the researchers gave the normal fit value.
i) Resource – Strategy: medium fit, normal fit
AN Company employee understands the company's vision and mission as written, but the Operational Standards for most divisions are not yet available, except for sales and marketing. The company's reputation is supported by strong legality as well as membership in national and international organizations, such as Association of The Indonesian Tours and Travel Agencies (ASITA) and International Air Transport Association (IATA). AN Company made changes in a balanced manner, with most of the resource elements supporting the strategy, although the lack of Operational Standards was anticipated through briefings and meetings. The researchers gave medium fit and normal fit values in this analysis.
j) Resource – Environment: tight fit, normal fit
AN Company’s reputation is supported by strong legality and membership in national and international organizations such as IATA, which increases customer trust. The human resources recruited are in accordance with their respective job descriptions, and Ehsan Platform's information technology and application make it easier for employees and consumers to make investments online. A company's reputation also affects social factors, as direct interaction with the public can shape public opinion. Thus, the researchers assigned the value of tight fit and normal fit to the relationship between reputation and social elements.
k) Resource – Value: tight fit, normal fit
AN Company human resources who have a good personality, discipline, and responsibility are easier to instill company values. Companies applies a reward and punishment system to motivate employees, which in turn reinforces the company's values and reputation, and increase customer trust. A pleasant work environment and effective communication during meetings also contribute to the understanding of the company's principles. The researchers assessed the relationship between these elements as tight fit and normal fit, showing that the company moves at a balanced pace in implementing these values.
l) Resource – Organization: medium fit, normal fit
The availability of office buildings at AN Company increases employee comfort and productivity, while existing physical resources support organizational systems. In the relationship between resources and the organization, the company makes changes in a balanced manner and provides briefings in every meeting. However, simple written Operational Standards are only available for the sales and marketing divisions, while supervisors and muthawwif should also be enforced. The researchers assessed this relationship as medium fit and normal fit.
m) Value – Strategy: medium fit, normal fit
The majority of AN Company staff are graduates of the Islamic boarding school that the company established and the senior management always tries to support family values through activities such as meals together and congregational prayers, and even family gatherings. This aims to increase solidity and a sense of belonging, so that employees do not hesitate to become Word of Mouth agents for the company. The company does not need much value-related adjustments, as the value component supports the strategy, but the instillation of value by top management is verbal without a special program, which can make it difficult for new hires to understand the company's goals, especially for employees who are not graduates of the Islamic boarding school. This has the potential to cause non-compliance with operational standards, so the researchers assigned medium fit and normal fit values.
n) Value – Environment: medium fit, normal fit
AN Company instills the value of kinship among employees, which encourages them to support each other in the face of competition. Good communication and regular visits to consumers also help maintain good relationships. In addition, the relationship with suppliers is well established because many of them are alumni of the company’s Islamic boarding school itself. The company's development is balanced, so there is no need to make many changes. Family values applied to consumers create a sense of comfort that increases customer loyalty. The researchers assessed the relationship between these elements as medium fit and normal fit, showing a good fit between company values and operational practices.
o) Value – Resource: tight fit, normal fit
The value of family at AN Company has a positive impact on human resources, which in turn improves employee performance and the company's reputation. The researchers assessed the alignment between these values and the company's practices as a tight fit. Changes in the company are carried out in a balanced and mutually supportive manner, with the implementation of a reward and punishment system, as well as guidance through evaluation meetings after each project, which help new employees understand family values. However, the company does not have a specific program to further develop these values, so the researchers assessed the overall evaluation as normal fit, indicating a good fit but still room for improvement.
p) Value – Organization: tight fit, early fit
The family values and organizational culture at AN Company create comfort for employees, allowing them to communicate semi-formally and help each other in completing tasks. Top management maintains good relationships with staff to minimize turnover, provide guidance and motivation, and view employees as collaborators. Senior management sometimes invites staffs to lunch together, to increase employee comfort and work motivation. The researchers evaluated this relationship as early fit and tight fit.
q) Organization – Strategy: medium fit, normal fit
The family culture at AN Company prioritizes employee comfort and maximizes productivity, so that the company is better prepared to run operations according to its vision and goals. A clear organizational structure, along with a reward and punishment system, helps to organize and motivate employees. However, the absence of written Operational Standards in other divisions other than sales and marketing makes employees less understanding of it. The company made changes in a balanced manner, with most elements supporting each other, and anticipating these shortcomings through verbal briefings and meetings. The researchers assessed this relationship as medium fit and normal fit.
r) Organization – Environment: tight fit, early fit
AN Company has a well-managed procedure for commercial activities thanks to a clear organizational structure, where tasks are allocated to specialized divisions. For example, the finance division is able to handle payments and bills effectively using information systems, as well as communicate with consumers in a semi-formal language that makes them feel comfortable. The training and development provided to employees helps them prepare for the high competition. The company makes changes in a balanced way, where organizational elements support each other with environmental elements. The researchers assessed the relationship between these elements as tight fit and early fit.
s) Organization – Resource: medium fit, normal fit
The family culture at AN Company, combined with firm and intelligent leadership, creates a close relationship between employees and management and provides motivation and support, both during and after work hours. Reward and punishment system are applied to all employees, and a clear organizational structure helps employees understand their duties, improving performance and consumer confidence. However, a lack of focus on experience during recruitment can hinder performance. The company makes changes in a balanced way, where organizational elements support resources, so that not many changes are needed. Hence, the researchers assessed this relationship as medium fit and normal fit.
t) Organization – Value: tight fit, normal fit
The family culture and clear organizational structure help employees understand their tasks and the training provided by the company improves their performance. The researchers assessed this relationship as a tight fit. The company makes changes in a balanced way, not too fast or too slow, because the organizational elements mostly support the company's values, so the researchers gave a normal fit value.
From the analysis above, the visualization of the fit among SERVO elements is presented in the following heatmap (Figure 3). The relationship quality scores are coded as follows:
•T/e (Tight fit, early fit) → darkest color = very strong relationship
•T/n, M/n (tight/medium normal) → medium color
•L/d (Loose fit, delayed fit) → light color = weak relationship
[Figure 3. about here]
The Strategy–Resources and Value–Organization relationships has a tight fit reflecting the alignment between pesantren-based values and organizational practices. However, Environment–Strategy shows a loose fit indicating that the strategy is not adaptive enough to competitor dynamics and market preferences. This heatmap helps to identify priority areas for improvement so that the strategy is more contextual and responsive.
Another finding that the medium fit values in the Strategy–Organization and Value–Strategy relationships indicates that although AN Company has built a strategy that is in line with the pesantren-based values and organizational structure, its implementation has not been fully responsive to market changes or external competition. This is in line with the findings in Nuroni and Adiguna (2017) which also found a medium fit in the evaluation of the strategy of the subject company, where the relationship between strategy elements and the external environment is still less than optimal due to the absence of adaptive strategy updates[24]. The finding reflects the common challenges faced by many medium-scale service companies in Indonesia, namely the strength of internal cultural values that have not been fully translated into operational systems that are responsive to the market. In contrast to the structural approach in Porter's model which emphasizes the importance of internal consistency in cost leadership, differentiation, and focus[25], the context of AN Company shows that the spiritual approach and Islamic values are the main foundations of differentiation. In this case, the spiritual value-based approach has not been fully formalized in standard operating procedures, so the resulting “Fit” concept is still classified as moderate. Therefore, this study enriches the literature by showing that in the context of Islamic boarding school-based service bureaus, strategy adaptation requires not only the integration of spiritual values, but also formality in the managerial system to achieve values, strategy, and execution harmony.
Strategy evaluation is the final stage in strategic management. Strategy evaluation is a tool to get information when a strategy cannot run. All strategies can be modified in the future as internal and external factors are constantly changing. The three basic activities of strategy evaluation are reviewing the external and internal factors that are the basis of the current strategy; measure performance as well as take corrective action. The main job in strategic management is to think through the overall mission of the Company.
a) Improvement of the commission fee
Evaluation of commission fees in the marketing division of hajj and umrah travel companies is very important to ensure the effectiveness and suitability of compensation with expected performance. In this industry, marketing success greatly relies on the team's ability to attract pilgrims and establish good relationships with the customers. The existing commission fee structure needs to be reviewed regularly to remain competitive and motivate the marketing team to achieve the set targets. In addition, this evaluation also helps the company assess whether the amount of commission is in accordance with the budget and does not burden operational costs. With the right adjustments, commission fees are expected to not only improve the performance of the selling but also help the company achieve its business goals in a sustainable manner and maintain the satisfaction of the marketing team at once.
b) Reduction of the target of pilgrims
Evaluation of the determination of pilgrim targets in hajj and umrah travel companies is very important to ensure that the targets set are realistic, challenging, but still achievable by the marketing and operational teams. In determining the target number of pilgrims, the company needs to consider a number of factors for instance market demand trends, operational capacity, service quality, and regulations from the government regarding quotas and departure permits. This evaluation aims to balance the company's growth ambitions and the comfort and satisfaction of pilgrims, because this kind of travel is not only about the number but also the spiritual experience that must be fulfilled properly. By conducting a comprehensive evaluation, the company can avoid setting the target which too high or low, maintain team motivation, and strengthen their position in this competitive industry. In this case, AN Company needs to make periodic adjustments to change the existing strategy or further optimize the strategy so that there will be no decrease in the target consume
From the aforementioned results of the analysis, it can be concluded presented that the marketing strategy of AN Company analyzed using SERVO analysis has 3 implementations, namely: 1) the evaluation of the strategy in AN Company shows the need to increase the conversion of prospective pilgrims, optimize digital marketing through social media, improve service response time, and review of competitive strategies to face competitors in the hajj and umrah travel industry; 2) the evaluation to the current strategy and make any changes if needed, the 5 elements from SERVO analysis are presented in Table 1 and Figure 3; and 3) the development of programs and strategies by improving the commission fee and determining the target of pilgrims that need to be adjusted so that there will be no significant decrease. Moreover, tThe results of the study indicate how digital marketing optimization, service improvement, and adjustment of conversion strategies for prospective pilgrims can increase the company's rivalry in facing other competitors. In addition, this study also underlines the importance of adjusting the target of pilgrims and the commission fee system to support sustainable marketing performance. From the research findings, this study, practically, can contribute to the literature on strategic management in the hajj and umrah travel industry by providing an understanding of the application of SERVO analysis in evaluating and developing competitive strategies in the digital era. Moreover, the results are also theoretically expected to be a basis data for the business planning as well as consideration in implementing an appropriate marketing strategy in service-related company. However, this study is still limited to the specific field of business company and only derived from a SERVO analysis. Therefore, further research is suggested to expand the analysis by including perspectives from various stakeholders such as pilgrims, employees, and marketing partners in order to provide more comprehensive insights to the effectiveness of the implemented strategies. In addition, incorporating other analytical methods, such as SWOT or Balanced Scorecards in more related travel companies can help generating more in-depth evaluations in determining strategy development and assessing their impact on long-term performance.
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