pISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 10, October 2024 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4724
Local Coffee Product Development Strategy
Nazla kaylasalma1, Virgo Simamora2*
Universitas 17 Agustus 1945, Indonesia
Email: [email protected]1, [email protected]2*
*Correspondence
ABSTRACT
Keywords: coffeeshop;
development; product.
Kopi Kali Place is one of the popular coffee shops in the
North Jakarta area that has been established since 2019. The
purpose of this study is to determine the market penetration
and development of local coffee products of coffee shop
Kopi Kali. This study uses a descriptive qualitative approach
to understand the development of local coffee products in
Kopi Kali Coffee Shop. The research methods used include
in-depth interviews, participatory observation,
documentation, and data triangulation. The results of the
research show that Kopi Kali Coffee shop, since its
establishment in 2019 until 2024, has undergone an
impressive evolution in facing challenges and changes in the
coffee industry. With strong adaptability and a high
commitment to innovation, Kopi Kali has successfully
developed an effective market penetration strategy. The
main focus on innovative product development such as the
transformation of "Kopi Belies" into a non-alcoholic version
and the introduction of a variety of excellent coffee menus
demonstrates a dedication to maintaining quality and
creating a variety of flavors that appeal to customers. Smart
marketing strategies, including the use of social media and
partnerships with influencers, have been successful in
increasing brand awareness and reaching a wider market
segment.
Introduction
Coffee is one of Indonesia's main plantation commodities that plays an important
role as a foreign exchange earner, job creator, and income contributor for farmers and
other economic actors. In 2014, Indonesia occupied the fourth position as the world's
largest coffee producer after Brazil, Vietnam, and Colombia. In 2015, Indonesia was also
the fifth largest coffee exporter based on the number of coffee product exports with the
Harmonized System (HS) code 0901, after Brazil, Vietnam, Colombia, and Germany.
(Wachdijono et al., 2022). Besides being known as a coffee producer, Indonesia is among
the five countries with the highest consumption rates in the world. Indonesia's
consumption level showed a consistent increase from 2017 2021, namely 5 million
sacks @ 60 kg, up 4.04% from the previous year. (Adiningrum et al., 2022).
Local Coffee Product Development Strategy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4725
This phenomenon explains the high business opportunities in the coffee industry
which encourages the increase in the number of coffee shops and competition between
coffee shops in Jakarta. To face the competition, each coffee hops needs to innovate to
increase sales volume. According to (Anggraini et al., 2022) that there are 4 strategies
that companies can implement to increase sales volume, namely, market penetration
strategy, product development strategy, market development strategy and product
diversification. To remain competitive, coffee shops can implement each of these
strategies partially or simultaneously.
Kopi Kali Place is one of the popular coffee shops in the North Jakarta area that
was established in 2019. Referring to (Irmayani, 2023), Kopi Kali carried out market
penetration and product development to increase its sales volume. Market penetration is
a company's strategy that focuses on marketing existing products and in markets that are
already running (Irmayani, 2023). Product development is a corporate strategy that
focuses on developing products that are marketed in existing markets to increase sales
volume. From several previous research results, it is proven that there is a positive
influence of market penetration on increasing sales volume (Wijaya, 2017). From several
previous research results, it was found that market penetration has proven to have a
positive effect on increasing sales volume. Similarly, the results of previous research
conducted by (Basda et al., 2022) found that local coffee product development strategies
have a positive effect on increasing local coffee sales.
This research focuses on Kopi Kali's Coffee Shop efforts to increase sales volume
through market penetration and product development. The purpose of this research is to
find out how the experience of Kali Coffee owners in market penetration and product
development to increase its sales volume.
Using the concept of The Ansoff Matrix proposed by Ansoff in (Imelda et al.,
2022), there are four main strategies that companies can use to increase their sales, namely
market penetration strategy, product development, market development and
diversification. Market penetration is a way for companies to increase sales volume by
focusing on increasing the number of sales of old products and marketed in the old market
(Aryani et al., 2022). Market penetration assumes that there is unmet demand in the
market and that consumers still have unused resources. This can be achieved by getting
more buyers from the same target market or making consumers who have become
customers will buy products that have been marketed more often (Lindiani et al., 2024).
Promotion is one of the tools for a company to carry out a market penetration strategy
and is able to provide significant results if implemented using the right procedures. The
function of promotion itself is to influence consumer buying interest in products that have
been marketed. The results of (Rasmikayati et al., 2020) explain that market penetration
strategies can be carried out by increasing brand awareness, increasing consumer loyalty
through providing merchandise, and utilizing merchandise as a promotional medium.
From several previous research results, it is explained that market penetration has proven
to be effective in improving company performance.
Nazla kaylasalma, Virgo Simamora
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4726
Method
This study uses a descriptive qualitative approach to understand the market
penetration strategy and development of local coffee products at Coffeshop Kopi Kali.
The research methods used include in-depth interviews, participatory observation, and
documentation (Kuantitatif, 2016). Interviews were conducted with the owner, a
consumer barista of Kopi Kali. The interview questions are structured in a semi-structured
manner to allow for in-depth exploration of key topics such as product development
strategies, innovation, response to market trends, and consumer experience. The results
of the interviews were transcribed and analyzed using thematic analysis methods to
identify relevant themes and patterns. Observations were conducted at Kopi Kali
locations in North Jakarta for several weeks to understand daily operations, customer
interactions, and the implementation of marketing strategies.
Results and Discussion
Coffee Shop Market Penetration Kopi Kali
Kopi Kali is located in Tanjung Priok and has been operating since 2019. Kali
Coffee is a motto to invite people to drink coffee, which in colloquial language is known
as "coffee kali". Since its establishment in 2019, Kali Coffee has penetrated the market,
as stated by the owner of Kali Coffee, namely participant 1 (P1) as follows:
"For our promo, there is a name called the twilight promo, from 12:00 p.m. to 6:00
a.m., milk coffee costs 18,000 to 10,000, so for the promo it becomes 10,000, it's for the
twilight promo and other promos, for example, there was an event yesterday, we have
made a 50% promo valid for 2 to 3 days, as for the weekly promo, for example, bundling,
for example, getting coffee with heavy food."
"If we increase sales products, it depends on ourselves, for example, making
promos about new products, bundling products between the old product and new products
and plus snacks, we bundling between 3 of them, they still enjoy old products and there
are snacks too, besides that for their own promotion, they use Instagram and TikTok
feeds, we also use food vloggers for promotions as well, so more and more people come
and buy our products."
The results of the interview explained that to increase the sales volume of old
products, Kopi Kali carried out a promotion by reducing the price of old products from
12.00 18.00 by 55% within 2-3 days. In addition to price reductions, Kopi Kali routinely
every week promotes the sale of old products by providing special prices for bundling old
products with heavy food and bundling old products with snack products. The promotion
program is supported by leveraging the power of social media such as Instagram and
TikTok and food vloggers to build deeper engagement with existing customers.
Interviews were also conducted with existing customers of Kopi Kali (P2), to
explore the perception of old products. The results of interviews with existing customers
(P2) obtained the following information:
Local Coffee Product Development Strategy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4727
"For the old product, of course I really like it, namely the signature taste until now
is still consistent, that's what I have tried until now from the product called "Kopi Kali"
caramel matchiato is the old product, maybe for that because I am an old customer.
According to old consumers, the most preferred old product is Signature Kali
Caramel Matchiato Coffee.
Product development of Coffee shop Kopi Kali
In coffee shops, the development of new products can be in the form of innovations
in the coffee making process with unique manufacturing techniques starting from those
that create a unique coffee taste. Research (Febriyanti et al., 2022) to develop local coffee
products by developing various variants of ground coffee products such as organic coffee,
coffee with various levels of fineness, and blended coffee with local spices to meet diverse
market tastes has proven successful in developing a coffee shop business. To increase
sales volume, Kopi Kali has developed products as stated by P1 as follows:
"Kopi Kali Coffee has long-standing flagship products that are still in demand by
loyal customers, namely "Signature Kopi Kali Gula Aren" and "Kopi Bayleys". This
modified Bayleys coffee that was originally served with alcohol, has been changed to a
non-alcoholic version. This transformation is carried out without losing its distinctive
taste, so that it can still be enjoyed by customers who avoid alcohol. One of the latest
innovations introduced is the mocktail, which is specially designed as a halal alternative
for customers who do not consume coffee.
"Good quality and taste are our top priorities, which have managed to maintain the
trust of new customers. While flavor preferences can vary from one barista to another,
Kopi Kali strives to create the right balance between sweet and bitter flavors to cater to
diverse customer tastes. As a result, customers are more likely to reorder thanks to the
new innovations they continue to introduce.
The results of the interview explained that Kopi Kali has developed products with
innovations in product taste while consistently maintaining quality. Modifications to the
old product were carried out on Belies Coffee products that initially contained alcohol
were modified into non-alcoholic coffee with an alcoholic and halal taste. This approach
shows that Kopi Kali focuses on innovation that still respects the essence of old products,
while adapting them to the needs and preferences of the current market. This helps in
retaining existing loyal customers while attracting new customers who are looking for
halal beverage options with distinctive flavors.
New product innovations carried out by Kopi Kali received a positive response from
its customers as conveyed by Kopi Kali consumers as follows:
Interviews with existing customers, namely 2 participants
"I tried the new product directly, I prefer the innovation, namely the mocktail for
the version here, there are two versions, there are also non-coffee, only the non-coffee,
the non-coffee is made from rosella flowers, the new product is also fresh."
The results of interviews with old customers explained that there was a positive
response from old customers to the innovation of new cofee Mocktail and non-coffee
products made from rosella flowers with a fresh taste.
Nazla kaylasalma, Virgo Simamora
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4728
Interviews with old consumers, namely participant 3 (P3)
"I have only been to Kali Anam Coffee twice, I also said that I have just tried a
new menu, namely the first to try a new variant, namely a new menu mojiato mocktail
for the image of the taste of coffee drinks, there is soda, maybe I am also more interested
in trying it right away, sometimes kadanf kopi kopi is just an innovation of cane
inoivation, but here they innovate combined with the usual non-alcoholic soda, coffee
mace soda but here there is a halal soda, very innovative, Kali imi coffee."
The results of interviews with new customers explained that there was a positive
response from new customers to new product innovations carried out by Kopi Kali,
namely creating new non-alcoholic products, but consumers still felt the sensation of
alcohol in coffee drinks. This new variant was launched under the name Mocktail Mojito.
According to consumers, this new variant is very innovative because it creates a coffee
drink product that is a combination of coffee flavor with non-alcoholic soda, meaning the
sensation of alcohol but a halal version. This new variant is a new option for customers
who want to try something different but still within a framework that suits their values
and preferences.
From the results of interviews with the owners of Kopi Kali (P1), old consumers
(P2) and new consumers (P3) explained that since its establishment, Kopi Kali has
penetrated the market to increase the sales volume of old products by old consumers. The
results of the interview explained that market penetration was carried out by providing
promotions by lowering prices at certain hours, promotions with bundling programs,
namely old products and new products, old products with heavy food and old products
with snacks. Promotions are also carried out at certain events by utilizing social media.
From the results of the interview, it was explained that the owner of Kopi Kali (P1)
has made new innovations in the development of its products which received a positive
response from old consumers (P2) and new consumers (P3). The new variants that
received a positive response from the old consumer version are Moctail Mojito, a soda-
and coffee-based coffee variant and a new non-coffee variant based on rosella flowers.
The development of the menu reflects Kopi Kali's commitment to continue to innovate
and adapt to evolving market trends.
Conclusion
Overall, Kopi Kali's journey from its establishment in 2019 to 2024 illustrates Kopi
Kali's ability to survive through market penetration and product development. Market
penetration is carried out through price promotion programs, offering bundling products,
taking advantage of certain events and using social media to reach a wider market.
Product development is carried out by modifying the old product by presenting a non-
alcoholic version of coffee while still maintaining the sensation of alcohol taste. Product
development is also carried out by presenting non-coffee beverage products with the
fragrance of rosella flowers. Through innovation, Kali Coffee has succeeded in presenting
a variety of unique and attractive flavors for customers, while maintaining consistency in
Local Coffee Product Development Strategy
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4729
quality and taste that is the hallmark of Kali Coffee. The results of market penetration and
product development received a positive response from old consumers as well as with
consumers who have just visited the Kopi Kali Coffee shop. By utilizing social media,
this strategy of penetration and menu development not only expands their market reach
but also strengthens their reputation as a coffee provider with high quality standards that
continues to innovate according to evolving trends and consumer preferences.
To continue to survive in the coffee shop industry, penetrate the market, product
development is a strategic choice for coffee shops.
Nazla kaylasalma, Virgo Simamora
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4730
Bibliography
Adiningrum, L., Yunanda, F., Angelita, T., Mulyaningsih, S., & Puspa, T. (2022).
Analisis Strategi Bisnis Kedai Kopi Coffee Latar. Jurnal Ekonomi Trisakti, 2(2),
391404.
Anggraini, A. H., Un, P., Klau, F., & Adar, D. (2022). STRATEGI PENGEMBANGAN
USAHA PENGOLAHAN KOPI. Jurnal EXCELLENTIA, 11(01), 18.
Aryani, E., Zanaria, Y., & Kurniawan, A. (2022). Analisis Perkembangan Coffee Shop
Sebagai Salah Satu Peranan Umkm Di Kota Metro. Jurnal Akuntansi AKTIVA, 3(2),
139145.
Basda, M. I., Hasan, I., & Rasyid, R. (2022). STRATEGI PENGEMBANGAN USAHA
KOPI BUBUK. Wiratani: Jurnal Ilmiah Agribisnis, 5(2), 164173.
Febriyanti, B., Hudaya, A. R., & Wachdijono, W. (2022). Variabel yang Mempengaruhi
Inovasi Produk Coffee Shop Di Kota Cirebon. Agropross: National Conference
Proceedings of Agriculture, 501509.
Imelda, M., Hendriyani, C., & Ruslan, B. (2022). Analisis Strategi Branding
Menggunakan Ansoff Matrik Dalam Menarik Minat Calon Mahasiswa Baru
Universitas Katolik Parahyangan. Jurnal Ilmiah Manajemen Dan Kewirausahaan,
1(1), 172179.
Irmayani, I. (2023). Peran Digital Marketing Dalam Meningkatkan Omset Penjualan
Pada Pelaku Usaha Mikro Di Masa Pandemi Covid 19 Perspektif Etika Bisnis Islam
(Studi Pada Jajanan Tape Khas Bugis Arya Azril Di Kelurahan Duyu). Universitas
Islam Negeri Datokarama Palu.
Kuantitatif, P. P. (2016). Metode Penelitian Kunatitatif Kualitatif dan R&D. Alfabeta,
Bandung.
Lindiani, L., Registiana, I., Fajrullah, F., & Noviyanti, I. (2024). Analisis Strategi
Promosi Bisnis UMKM Coffee Shop Dengan Menggunakan Media Sosial. Jurnal
Bintang Manajemen, 2(2), 7593.
Rasmikayati, E., Afriyanti, S., & Saefudin, B. R. (2020). Keragaan, Potensi dan Kendala
pada Usaha Kedai Kopi Di Jatinangor: Kasus pada Belike Coffee Shop dan Balad
Coffee Works. Agritekh (Jurnal Agribisnis Dan Teknologi Pangan), 1(01), 2645.
Wachdijono, W. W., Wahyuni, S., & Trisnaningsih, U. (2022). SOSIALISASI
STRATEGI PEMASARAN KOPI LOKAL. Qardhul Hasan: Media Pengabdian
Kepada Masyarakat, 8(3), 275285.
Wijaya, G. A. (2017). Analisis Strategi Bersaing Dalam Persaingan Café Di Kota Malang
(Studi Kasus Pada Vosco Coffee Malang). Jurnal Ilmiah Mahasiswa FEB, 5(2).