PROPOSED MARKETING STRATEGY TO DELIVER SPECIALTY COFFEE (CASE STUDY: CENTRAL STATION CAFÉ SURYA SUMANTRI)

• Main Author: Theodric, Darien
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53208
• Institution: Institut Teknologi Bandung

Central Station Café is a specialty café located in Surya Sumantri with the focus on serving specialty coffee. The café has suffered from fluctuations and downtrend in sales from 2018 to 2020. Promotions has been done through word of mouth by inviting relatives to the owner to come and hangout and digital promotions are rarely done. The current approach of the café as the place for small events has not given uptrend and consistent sales over the past two years. Explorative study to find the root cause of the business issue is done using internal analysis containing Segmenting, Targeting, and Positioning (STP) and 7P marketing mix; and external analysis id one using Porter 5 Forces analysis, PESTLE analysis, 7P marketing mix, Porter’s Four Corner, and survey to consumers. Result of the study noted two major root causes of the business issue. First, Central Station Café is price competitive with similar specialty café brands, but not competitive to cheaper alternatives of non-specialty café brands. Consumers were found to prefer other brands than Central Station Café due to no unique selling point. As a result, consumers prefer to go to other brands can provide similar products with similar benefits and cheaper total product price (including delivery cost through online delivery). Second, Central Station Café rely on consumer segment that likes to hang out at the café and the specialty coffee brand was not in the consumers’ mind due to the positioning of Central Station Café about the place where people can hang out together. The less focus on coffee education is also affected by the lack of coffee industry knowledge from the employees, resulting in no coffee knowledge education implemented. The recommendation involves proposed STP to two major segments: out of home and at home consumers. Updates to the marketing mix elements of Central Station are also given, including product packaging update, new menu introduction, utilization of ride-hailing app for additional promotion and process upgrade, social media contents about coffee knowledge and product promotions, and internal or external trainings to the team of Central Station Café to support the planned product and promotion. and blue ocean strategy including new products to target non-coffee consumers and subscription type business model.