International Conference on Economics
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Added on 2021-07-13
International Conference on Economics
Added on 2021-07-13
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ICE-BEES 2019International Conference on Economics, Business and Economic Education 2019Volume 2020Conference PaperDeveloping a Marketing Strategy Based onMarket Segmentation Through ClusteringMethod in Food and Beverage Industry inBandung: Case Study of Bola Ubi YamaBestra Tomassa and Evy Rachmawati“BachelorofEntrepreneurship,SchoolofBusinessand Management,InstitutTeknologiBandung”, and “School of Business and Management, Institut Teknologi Bandung”AbstractFood and beverage industry has been highly developing throughout time varying theindustry into smallersub-industries and more varieties ofproductavailable forthemarket to choose. Since it is one of the lowest barriers to penetrate out of all industries,the industrial competitiveness is very high due to its demand and supply.Bola Ubiis a traditional food coming from West Java. Bola Ubihas a unique sweet yetsavory taste with its crunchy yet chewy texture. As traditional food, Bola Ubi is relativelypopular. As time goes by, there are brands coming up to sell this kind of product. One ofthese companies is Yama. Yama launched their first store in February 2018 in Taman SariFood Festival.As time goes by Yama reveals a downward trend in its sales.Referringto create,delivery,and capture metrics,Yama has an equal,ifnotbetter in creatingthe value and capturing it to the customer.The only difference that Yama have is thedelivery metrics.Although in hindsightthe solution is to justchange the location ofYama’s store,itwould not create a substantive competitive advantage in the long run.Based on thedata analysis,the study found that the way forward is to position ourselves firmly intoone existing specific market to capitalize the lack of focus of our competitor.AcknowledgementsFirst of All the researchers want to thank the almighty Allah he has enabled us to finishthis paper through all the challenges. The author of this research is very grateful for allthe help from Mrs. Evy Rachmawati for helping the author as a mentor for this paper. Theauthor would also like to thank Mr. Nazmi Fathnur Ahmad for the help in also mentoringthis paperSecond ofall,the author wants to thank his family and friends for allthe supportthat had been given, mentally and financially through out the research. Third of alltheHow to cite this article:Bestra Tomassa and Evy Rachmawati, (2020), “Developing a Marketing Strategy Based on Market Segmentation ThroughClustering Method in Food and Beverage Industry in Bandung:Case Study of Bola Ubi Yama” in International Conference on Economics, Businessand Economic Education 2019, KnE Social Sciences, pages 1080–1105.DOI 10.18502/kss.v4i6.6664Page 1080Corresponding Author:Bestra Tomassaberstra.tomassa@sbm-itb.ac.idReceived: 7 February 2020Accepted: 9 March 2020Published: 23 March 2020Publishing services provided byKnowledge EBestra Tomassa and EvyRachmawati. This article isdistributed under the terms ofthe Creative CommonsAttribution License, whichpermits unrestricted use andredistribution provided that theoriginal author and source arecredited.Selection and Peer-review underthe responsibility of theICE-BEES 2019 ConferenceCommittee.
ICE-BEES 2019researchers would also like to thank ICE BEES for letting us present our paper in theICE BEES Conference held in 2019.1. Introduction1.1. Company Description1.1.1. Company BackgroundThe initialidea of Yama started from the first day of brainstorming in Jatinangor TownSquare as a second choice to replace the education startup idea named Berisi.Itcontinues in the culinary nightatCibadak to watch the potentialfood or beveragesbusiness.The beginning ofplan always correlates with socialentrepreneurship thatbecome Yama goal and spirit to enhance the welfare of the people in any form of futurebusiness they design.The social spirit that Yama bring was happiness with the form of yam or known as Ubiin Indonesia. Yama (山) came from Japanese means mountain because yam is identicalto the plants that grow in mountainous areas. We also done market research about yamball as typical food of Bandung. Lots of culinary types are offered in the city of Bandung.Everyone who comes or lives in Bandung willeasily find a variety of food in variousplaces from morning untilnight,with a variety of prices.Foods that are found-can beeither traditional to modern food or even a mixture between the two.Behind the development of the culinary industry is quite rapid in Bandung, there aresome obstacles associated with traditional foods that are considered low-end and nowless popular,can be seen in the current conditions,traditionalfood traders began todecrease.While some stillretain traditionalfood,they stillhave hygiene,health,andfood sellers who are not paying attention to the environmental impact. Such as the useof plastic waste or waste that is difficult to decompose.W saw an opportunity to open a sweet potato snack business, specifically ‘Bola Ubi’ orsweet potato ball that aim to spread happiness in Bandung city and introduce traditionalfood to be acknowledged by people.Moreover,we hope that ‘Bola Ubi’snack couldbe a gift for the family in hometown.We believe through the business creation,more people can taste traditionalfoodwhich using one of commodities (ubi) as the main ingredients and also another productdevelopmentin the future.As the beginning,we market‘Bola Ubi’as ourprimaryproduct.DOI 10.18502/kss.v4i6.6664Page 1081
ICE-BEES 2019Other than developing such resources,we see that this is one ofthe up-trendingfoods in big cities. By introducing traditional food to the new generation, we would alsokeep our tradition alive and give bigger impact out of it.1.1.2. Company ProfileCompany DescriptionYama Co.was built on 7 September 2017 as a company that provide localdelicacies.The beginning of plan correlates with social entrepreneurship that becomes Yama goaland spiritto enhance the welfare ofthe people in any form offuture business theydesign.Yama was a yam ballor ‘bola ubi’seller.Yama consists offour co-founderswhich are Andri, Asnawi, Bestra, and Eric.The socialspirit that Yama bring upon is happiness with the form of yam or knownas Ubiin Indonesia.Yama (山) came from Japanese means mountain because yam isidenticalto the plants that grow in mountainous areas.Our main store was located inTaman SariFood Festival,which allows us to grab high marketshare in traffic area,but currently our store is located in Antapani.Our pricing is slightly cheaper than ourcompetitors and our quality is on average.Vision, Mission and ObjectivesVisi2n:Yama wants to reintroduce traditionalcuisines to the younger generation withnew presentation to preserve Indonesia’s culture.Mission:Yama aims to be ‘bola ubi’leading seller in 3 years by giving the best quality and service in Bandung and nearby.Objective:• Gain the production capacity, efficiency and effectiveness at least 2% of minimumlevel.• Raising brand awareness, product’s position, and market share• Save yearly usage of funds and manage expenses to fit sales conditions• Productivity and achievement goes according to plan, minimize problem with thecondition of employees, relationships and corporate culture well established• Operational staff understand working flow, working consistently 9 hours per day,achieve 90% successful production rateDOI 10.18502/kss.v4i6.6664Page 1082
ICE-BEES 2019• Collecting,preparing and interpreting reports,budgets,accounts,and financialstatements, to maintain healthy financial1.2. Organizational StructureThe organizational structure is shown in table 1 below.TABLE 1: Organizational Structure1.3. Business Model CanvasBusiness Model Canvas is a tool to represent a business straight forward with its model.Through 9 building blocks from value,customer,delivery,relationships,resources,activities,partners,costs,and revenues,business modelcanvas enables a businessto see its overview of its stakeholders (Strategyzer.com).1.3.1. Value PropositionYama has a value of taste, price, and location. We were located in the city center whereour competitors were a bit far from the main target market which were people living inBandung city center.DOI 10.18502/kss.v4i6.6664Page 1083
ICE-BEES 20191.3.2. Customer SegmentInitially Yama was trying to serve millennials as their main target market, especially ITBStudents.We opened up store in Taman SariFood Festivalwhich was located next toITB.1.3.3. ChannelYama’s first store was located in Taman SariFood Festival.It was an ideallocation toserve our main target market which was ITB Students.Yama also opened up pop upstores in several exhibitions like Festpreneur, UprealState, Bandung Food Festival, andYoung Entrepreneur Festival in order to increase sales and brand awareness.1.3.4. Customer RelationshipYama aimed to have a high brand loyalty with its customers and maintain its marketshare of people who wants bola ubi near its location1.3.5. Key ResourcesYama key resources consists of infrastructures like its store,exhibition tools,cookingutensils, ingredients, employees, co-founders.1.3.6. Key ActivitiesIn order to leverage Yama’s business and activate the resources,Yama’s activities areproduction, sales, store maintenance, business development through product develop-ment and marketing strategy, human resource development, etc1.3.7. Key PartnersTo run the business,there were directstakeholders thatenables Yama to run thebusiness better such as investors who invested financially in our business,suppliersof our ingredients and materials,business mentors who help Yama in networking anddecision making, and landlords.DOI 10.18502/kss.v4i6.6664Page 1084
ICE-BEES 20191.3.8.Cost StructureIn operating our business there are fixed costs and variable costs.In short,the costsconsists of operational, marketing and human resource1.3.9. Revenue StreamYama’s main revenue stream comes from sales through 2 channels which are storesales and bazaar. Most of the revenue comes from 2 channels.1.4. SWOT AnalysisSWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework usedto evaluate a company’s competitive position and to develop strategic planning. SWOTanalysis assesses internaland externalfactors,as wellas current and future potential(investopedia.com)1.4.1. StrengthYama has strength in progressiveness of business. Compared to the other sellers, Yamais the only one selling with a startup concept.Mostofour competitors are runningbusiness in conventionalmethod.Targeting city center ofBandung,they also havelocation advantage to market.1.4.2. WeaknessYama’s weakness in running the business is experience and time.The co-foundershave very few experiences in running a food business and very limited time becausethe co-founders are also students.1.4.3. OpportunityYama has an externaladvantage in running the business which are betterhumanresource and knowledge, and also location advantage compared to competitors. Yamawas run by students of entrepreneurship ITB which has better knowledge in growingand scaling a business based on their knowledge.They also have better access toDOI 10.18502/kss.v4i6.6664Page 1085
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