This study was conducted based on not achieving the revenue target for the "Raja Abon Makmur Lestari" UKM in Pangkalpinang City. The purpose of this study was to analyze the position of SMEs in the IE matrix and formulate a marketing strategy for UKM "Raja Abon Makmur Lestari" in Pangkalpinang City. The research method used is case study. The number of samples used in this study were 55 samples, 5 samples from internal UKM "Raja Abon Makmur Lestari" and 50 samples from external UKM "Raja Abon Makmur Lestari". Methods of data collection using questionnaires and data analysis methods using IE analysis and SWOT analysis. The results showed that the position of "Raja Abon Makmur Lestari" UKM was in quadrant V. In this position SMEs could be managed with a strategy of maintaining and maintaining (hold and maintain), namely market penetration and development of abon telur products. The strategy formulation that must be carried out by UKM "Raja Abon Makmur Lestari" in Pangkalpinang City is to improve good and quality service to consumers, Maintain existing business places, Develop product delivery by having special vehicles, Maximize promotional activities by expanding market networks, Adjust product prices in accordance with the increase in raw materials, Increase innovation-new product innovations both in terms of taste, shape, Adjust product prices with the ability of consumers, and Have permanent outlets in developing the business.