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Sales decline is caused by low customer loyalty that makes customers to quickly switch to other products. This research aimed to analyze the performance of marketing mix, the level of customer satisfaction and loyalty, and the factors of marketing mix that affected customer satisfaction and loyalty, as well as to formulate strategies that could be performed to improve customer satisfaction and loyalty. This research applied Structural Equation Modeling method. Based on the analysis results of the factors affecting purchase decision to PT PUSRI fertilizer, it could be concluded that the level of customer satisfaction of PT PUSRI fertilizer was in the ‘satisfied’ category with the value of 67.8 percent, while the level of customer loyalty of PT PUSRI fertilizer was in the ‘loyal’ category with the value of 64.51 percent. Factors of the marketing mix that significantly affected customer satisfaction to PT PUSRI fertilizer were product and price, while place and promotion factors significantly did not affect it. Customer satisfaction significantly affected the building of customer loyalty. The strategy that could be applied for product variable was differentiation of aesthetic quality and for price variable was low-cost leader pricing.

THE EFFECT OF THE MARKETING MIX ON CUSTOMER SATISFACTION IN BUILDING CUSTOMER LOYALTY: A CASE STUDY OF PT. PUPUK SRIWIDJAJA