PRELIMINARY STUDY INTO THE MARKETING MIX AND TARGET MARKET FOR KOFFIE FABRIEK AROMA

• Main Author: Kesadaran, Matahari
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78733
• Institution: Institut Teknologi Bandung

Koffie Fabriek Aroma is a family-owned coffee business in Bandung that is renowned among Indonesian coffee connoisseurs for its unique aromatic flavor. Koffie Fabriek Aroma has been in operation for more than 80 years and continues to produce coffee using the same vintage machines it has used since 1930. These machines are fueled by firewood from rubber trees instead of gas, which allows the coffee to roast more slowly and retain more of its original aroma. Koffie Fabriek Aroma uses only organic, high-quality coffee which has undergone an aging process. Arabica coffee is stored for 8 years, while robusta coffee is stored for 5. The business sources coffee from various regions around Indonesia, including Java, Toraja, Aceh, Lampung, Medan, and Flores. Marketing mix and market segmentation analysis may help Koffie Fabriek Aroma to improve its business. However. Koffie Fabriek Aroma currently focuses more on market dominance strategies, operations, and human resource instead segmenting, targeting, and positioning, or analyzing weaknesses in its marketing mix. Therefore, Koffie Fabriek Aroma is limited in its marketing tactics, which relies almost solely on word-of-mouth. Conducting marketing mix and market segmentation analysis may help Koffie Fabriek Aroma target customers and position itself more effectively. The objectives of this study is to provide ideas and insights for Koffie Fabriek Aroma that may help to improve its business, and to uncover if there are any significant findings that can be the basis of further, more comprehensive research. This study aims to find the target segment for Koffie Fabriek Aroma customers in terms of demographic, geographic, behavioral, and psychographic characteristics. It also aims to analyze the effectiveness of Koffie Fabriek Aroma’s current marketing mix in terms of the 4 P’s (product, price, promotion, and place). This study uses a mixed-method design which combines aspects of both quantitative and qualitative research. Quantitative data was collected through online questionnaires, which used purposive sampling in order to collect 107 respondents age 18 and older in the Greater Bandung (which includes Cimahi, and surrounding areas) and Greater Jakarta (which includes Bogor, Depok, Tangerang, Bekasi, and surrounding areas) metropolitan areas who have heard of Koffie Fabriek Aroma. The survey was distributed online via Google Forms from 22 June 2015 to 27 July 2015. Qualitative data was collected through observations conducted at the Koffie Fabriek Aroma store on Jalan Banceuy during Monday, 18 May 2015 at 12:00 PM and 15 July 2015 at 11:00 AM. The results from both sources of data were analyzed and compared to see if there was a convergence of evidence that would allow strong conclusions to be made. The study concluded that there may be a significant segment of Koffie Fabriek Aroma customers among males age 40-64, and that there may be a large proportion of smokers among its customers. 79.59% of regular coffee buyers in this sample are active on social media, indicating that there may be opportunities for online marketing. In terms of marketing mix, the study concluded that Koffie Fabriek Aroma had good product and pricing, but poor promotion and distribution.