REDUCING BUSINESS RISK FROM PRODUCT PRICING STRATEGY BASED ON LOCATION ASSESSMENT FOR CULINARY START UP BUSINESS CASE STUDY OF BAKSO BAKAR KACAMATA HITAM

• Main Author: Edina Hasiana, Stacia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72408
• Institution: Institut Teknologi Bandung

Pricing strategy is a sensitive factor that should be considered in business risk of a company, not only because it gives direct impact to maintain profit but also it is very essential for the company sustainability especially for start up business. In this research the researcher is emphasizing on the impact of location to the pricing strategy. Pricing strategy and location assessment should be integrated to find the mature solution for the company. In this research the case study is Bakso Bakar Kacamata Hitam (Bakso Bakar KMH) a start up culinary company in Indonesia that sells roasted meatball. The company is planning to open a new retail store. The location assessment can help to understand the consumers’ general characteristics as well as the competitors’ characteristics. Hopefully this research can offer the best pricing strategy to be used in the location and can help the company to reduce business risk generated by pricing strategy. There are two alternative strategies that will be assessed in the research. Each alternative strategy will be given risk index to show which one will be the best for the company. The result of location assessment and BEP analysis will be the determining consideration for the risk index. Alternative strategy with lowest risk index will be recommended to the company. The result showed that the best decision is to use the Alternative Strategy II, however the company can choose not to use the location and find another location because of the dissatisfying result of the location assessment and also the medium risk of Alternative Strategy II. Hopefully the arrangement of methodologies used in this research can be used to assess the similar cases in the field and help the company to minimize their business risk.