DEVELOPMENT MARKETING STRATEGY FOR STREW IT FOUGHNUT TO INCREASE THE SALES

• Main Author: Afifah Dwiputri, Nadia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78605
• Institution: Institut Teknologi Bandung

One of growing and thriving industries in Indonesia is culinary industry. As supported by reports from Badan Pusat Statistik, in 2010 the number of businesses culinary industry in Indonesia is more than 2.9 million. This number increased in 2013 to 3.03 million and in 2014 has reached 3.2 million. The industry opens a whole lot of opportunity to start business particularly in ready-to-eat food type as 25% of the Indonesian average expenditure is ready-to-eat-food type. Bandung is one of cities in Indonesia that has rapid growth in the culinary industry as supported by reports from bandung.go.id that number of restaurant in Bandung increase almost 20% every year. Strew It is a culinary start-up company established in Bandung in 2015. Focusing in producing donut, Strew It saw that many donut companies limit the variation for the topping of donut to glazed, layered, and jam filling in the dough. Strew It capture the opportunity to modify topping to be more tasty with many variation by providing sprinkle topping and various savory flavors. To minimize operation expense, Strew It has opted for consignment sales channel. Cooperating with 1 café and 2 coffee shops, Strew It gets positive income every month. But, the growth of sales has been slow. By analyzing internal and external environment, the principal cause of this problem is identified as many various substitute food products are available at those consignment stores to creates a very high competition. Strew It also have no proper marketing activities. Strew It need to develop a proper marketing strategy to increase sales. This research is focusing on determining a costumer-centered marketing strategy. As Strew-It Doughnut product is considered a complementary product for coffee, 400 respondent perceptions have been collected to understand their insight on food buying decision while visiting coffee shops. The questionnaires were then processed by SPSS using Factor Analysis and TwoStep Cluster Analysis to refine the marketing activities. Other Customer-Centered Marketing Strategy tools which are STP and Marketing Mix are also utilized to enrich the analysis. Based on the results the most influential factor in importance order are factor 2 (Product), factor 1 (Pricing Strategy), factor 4 (Physical Evidence), and factor 7 (Taste). With this finding, the research has compiled four recommendations. First, the product. The respondent response was that the product is generally good. However, the company needs to increase product awareness to potential customers. Strew It focuses on product exposure activities, informing the quality and service improvement using satisfaction form distributed to all customer. Second, the pricing strategy is focused on discount, voucher, and special package promotion to attract more of the target market. Third, the physical evidence focus to make the display and table tag that contain all of Strew It marketing activities and also to become the company’s central marketing tool. And last is taste, focusing on how to improve the taste variant by doing new product development and trial promotion based on customer preference captured from the satisfaction form.