p–ISSN: 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 4543
Product Development and Positioning Strategies for Seaclues
Local Coffee
S Sarwita Salini
1
, Virgo Simamora
2*
Universitas 17 Agustus 1945, Indonesia
Email: [email protected]
1
2*
*Correspondence
ABSTRACT
Keywords: coffee,
product development,
segmentation; positioning.
Seacules Coffee Shop uses psychographic, demographic,
and behavioural factors to segment the market. Seaclues
Coffee Shop's target market includes consumers between the
ages of 18 and 45 who lead an active lifestyle and work as
professionals or students. Seaclues Coffee Shop's goods are
presented as premium coffee beverages. Seaclues serves
high-quality coffee beans that have been roasted by a roaster.
Coffee is served to customers with high-quality services
provided in a comfortable atmosphere. By implementing the
right positioning strategy, Seaclues Coffee Shop can attract
and retain the right customers, increase customer
satisfaction, and build long-term loyalty. To respond to the
dynamic market, Seaclues Coffee Shop has carried out
product development by creating unique and high-quality
product variants. The quality of Seaclues coffee products
comes from high-quality coffee beans that go through a
roasting process before being processed for serving.
Seaclues Coffee Shop develops innovative and unique
coffee products by utilizing spices. Accurate positioning and
product development help Seaclues Coffee Shop create
quality products that are different from competitors, which
strengthens Seaclues Coffee Shop's presence in a
competitive market.
Introduction
Indonesia is the 3rd largest coffee-producing country in the world after Brazil and
Vietnam. Vietnam is in second place producing 29.75 million coffee bags throughout
2022/2023. The fourth and fifth places are filled by Colombia and Ethiopia with
production of 11.3 million bags and 8.27 million bags, respectively (Arsyanto &
Rahmawati, 2018). According to the Central Statistics Agency (BPS) (2022) in the last 5
years, the trend of local coffee demand has shown a consistent increase as follows:
S Sarwita Salini, Virgo Simamora
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4544
Figure 1
Demand Trends and Growth of Indonesian Local Coffee
The phenomenon in Figure 1 shows the increase in local coffee demand and
production in the last 10 years, meaning that there are coffee business opportunities that
can be exploited by business actors. This opportunity is responded to by the presence of
MSMEs which has shown an increase in the last 3 years, from 1950 outlets in 2016 to
2950 outlets in 2019 (Handayani et al., 2023). One of the MSMEs that responded to this
opportunity is Seaclues Coffee Shop, which was established in 2021, and located in North
Jakarta. Until now, Seaclues Coffee Shop can survive the competition in the coffee shop
industry with a coffee sales turnover of hundreds of millions by 2024 (Rismawati et al.,
2019).
Product development is a company's growth strategy implemented by Seaclues to
offer new or old products that are modified and marketed to current market segments.
The results of (Hariyanto et al., 2023) explain that there is an influence of product
development on marketing performance. Furthermore, (Dakhi, 2022) explained that
consumer interest in buying is influenced by how a product is positioned among its
competitors. Product positioning describes the placement of a brand in the market to get
a positive response compared to competitor products (Hasiholan & DJ, 2019). Product
positioning development is the act of designing and building a company's image to get a
special place in the mind of the target market (Sihite et al., 2017). This research focuses
on product development and positioning of Seaclues Coffee Shop coffee products based
on local coffee. The purpose of this research is to provide an understanding of product
development and positioning of coffee beverage products marketed by Seaclues Coffee
Shop (Kholish & Darya, 2016).
Product development is a company's growth strategy by offering new or old
products that are modified and marketed to current market segments (Kotler &
Armstrong, 2008). Product development is the process of finding ideas for new goods and
services and converting them into commercially successful product line additions
(Jasmani, 2019). Companies need to make optimal use of their resources and carry out
product development activities to maintain the company's survival (Husniar et al., 2023).
Product development must be made to maintain and increase the competitiveness of
products against competitors (Wijaya & Maghfiroh, 2018). Product development is
carried out internally by the company by developing products that are by ongoing trends
(Wijaya & Maghfiroh, 2018). Product development by diversifying products and new
product strategies is carried out to increase product sales (Nailuvary et al., 2020). Based
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Product Development and Positioning Strategies for Seaclues Local Coffee
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4545
on research by (Nailuvary et al., 2020), it is shown that product development improves
sales stability.
Method
The research approach used by the researchers is qualitative. This study is
qualitative descriptive using the method of collecting information on photo elicitation
interviews The use of the photo interview information collection method is to obtain
information or information used in the research and is carried out by asking and answering
questions between the interviewer and the respondent using photos as an intermediary,
where the photos used include the Seaclus coffee shop. The researcher chose the coffee
shop because he saw the crowd of visitors who came to the coffee shop and the name of
the coffee shop brand that was already famous among the public. The purpose of using
the photo-elicitation interview information collection method is to obtain information
about the attitude of Generation Z towards the existence of local coffee shops. Similar
techniques have also been used by several studies related to consumer behaviour,
especially Generation Z and Millennials, by using visual media in the form of photos.
Results and Discussion
Positioning Produk Seaclues Coffee Shop
Positioning is the activity of designing offers and a company's image to occupy a
special place in the minds of consumers who are included in the target market (Salma et
al., 2021). For this reason, Seaclues Coffee Shop is positioned after market segmentation
is carried out as revealed by the owner of Seaclues Coffee Shop.
"At Seaclues Coffee Shop, we segment based on several key factors: demographics,
psychographics, profession and consumer behaviour". "In terms of psychographics, we
focus on customers who have an active and modern lifestyle and appreciate the quality
and unique experience of enjoying coffee. Our behavioural segment includes customers
who often visit coffee shops for work, meetings, or just to relax with our products, one of
which is café latte".
"In terms of psychographics, we focus on customers who have an active and modern
lifestyle and appreciate the quality and unique experience of enjoying coffee. Our
behavioural segment includes customers who often visit coffee shops for work, meetings,
or just to relax with our products, one of which is café latte".
The results of the interview explained that by using demographic, psychographic
and professional indicators, Seaclues Coffee Shop selected the target consumers who are
targeted by Seaclues Coffee Shop, namely consumers aged 18 to 45 years old with
employment status as students, professional workers, and entrepreneurs and have an
active lifestyle. One of the typical segmentation indicators of Seaclues Coffee Shop is the
behavioural indicator of coming to Seaclues Coffee Shop which includes customers who
come to work, and customers who come to relax.
To build a product image or identity in the minds of consumers, Seaclues Coffee
Shop does positioning as revealed by the owner of Seaclues Coffee Shop as follows:
S Sarwita Salini, Virgo Simamora
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4546
"At Seaclues, we focus on three main aspects: product quality, customer experience,
and local uniqueness. We believe that the combination of these three elements can help
us stand out amid stiff competition. We are very selective in choosing the coffee beans
we use. Only the highest quality coffee beans from the best plantations are selected by us.
One of our products is called Signature Corn Latte made from café latte mixed which is
developed with caramel syrup with corn and cheese on top. In addition, our roasting
process is highly precise and carried out by experienced roasters to ensure that each cup
of coffee has a consistent and superior taste. We also try to continue to innovate by
creating new coffee variants that follow the trend but still maintain premium quality."
The results of the interview explained that the coffee products marketed by Seaclues
Coffee Shop are positioned as premium coffee products. Coffee served based on quality
coffee beans from the best plantations, marketed under the name Signature Corn Latte
which is made from café latte mixed with caramel syrup with corn and kei as a topping.
Seaclues Coffee Shop's positioning as a premium coffee is sourced from the process of
serving coffee whose coffee beans are ground through a roasting process by an
experienced roaster.
To ensure the availability of quality coffee beans, the owner of Seaclues Coffee Shop
collaborates as follows:
"In addition, we have started a collaborative program with local farmers to create
exclusive blends that are only available at Seaclues. We are also developing eco-friendly
coffee packaging to support sustainability efforts". Positioning is also built through the
experience of drinking coffee in a comfortable atmosphere as stated by the owner of
Seaclues Coffee Shop follows:
"We want to be known as a coffee shop that not only offers high-quality coffee but
also an inspiring and comfortable environment". "We provide an atmosphere that
supports productivity with an aesthetic interior design and facilities such as free Wi-Fi
and meeting rooms".
The results of the interview explained that Seaclues Coffee Shop's coffee beverage
products are positioned as premium coffee products with coffee beans that go through the
process of roasting coffee by a roaster. Positioning as a quality coffee shop is also
supported by an inspiring and comfortable environment, meaning that positioning is built
through physical products and coffee shop services.
Product Development and Positioning Strategies for Seaclues Local Coffee
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4547
To create a strong positioning, Seaclues Coffee often holds events to build closer
relationships with customers as stated by Mr. Subur as the owner as follows:
"We also often hold community events, such as coffee workshops and discussions,
to build closer relationships with our customers. All of this helps us create a strong
positioning as a premium coffee destination and a community that cares about quality and
experience."
Seaclues Coffee Shop Product Development
The key to product development is to be able to transform the gap between unclear
demand and expectations into real products (Alimudin, 2018). Success in product
development will result in a superior product (Husniar et al., 2023). The same thing is the
focus of Seaclues Coffee shop as conveyed by the owner of Seaclues coffee shop as
follows:
"The first coffee product launched by Seaclues Coffee shop is Meiden Dreams Fit,
which is a coffee with a unique espresso served with fresh milk and hazelnut syrup plus
liquid dark chocolate and foam".
"Innovation is key to staying relevant and exciting in this highly dynamic industry.
At Seaclues, we continue to innovate by introducing a variety of unique coffee variants.
One of Seaclues Coffe's product innovations is the Signature Corn Latte which is made
from a café latte mix developed with caramel syrup with corn and cheese on top. This not
only attracts customers who are looking for an authentic coffee experience but also
establishes a strong and authentic identity in the local market. Various coffee variants
provided include milk coffee and palm sugar milk coffee, espresso-based drinks such as
Cappuccino, Mochaccino, and Americano".
By utilizing local ingredients, Seaclues Coffee Shop develops products by creating
a variety of unique coffee menus, such as coffee with a touch of local spices marketed
with Cinnamon Café Latte served with side dishes. Furthermore, Seaclues Coffee Shop
also develops cold brew coffee with an infusion of tropical fruits called coffee with the
addition of Indonesian herbs launched with Fruit Ice Coffee.
Various variants of coffee created by Seaclues Coffee shop, all of which use quality
coffee beans as revealed by the owner of Seaclues Coffee shop as follows:
"We are committed to using high-quality local ingredients".
S Sarwita Salini, Virgo Simamora
Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4548
By prioritizing the use of high-quality coffee beans and precise roasting techniques,
Seaclues was able to highlight quality advantages that were difficult for competitors to
replicate, thus strengthening its position as a premium coffee provider.
From the results of the interview, it is evident that Seacules Coffee with the owner
of Seaclues Coffee Shop, Seaclues can position itself as an exclusive and strong coffee
destination, able to attract and retain loyal customers. Thus, Seaclues can maintain its
competitiveness and continue to thrive in the competitive coffee products industry. It can
be seen that their segmentation and positioning strategies are very focused and directed.
They know their target market well and strive to meet customer needs and preferences
with high-quality products and services. Their positioning as a premium coffee shop with
a unique experience and a community that cares about quality sets them apart from the
competition. With innovative plans and an adaptive approach to market developments,
Seaclues Coffee Shop seems poised to continue to grow and attract more customers in the
future.
By implementing the right positioning strategy, Seaclues Coffee Shop can attract
and retain the right customers, increase customer satisfaction, and build long-term loyalty.
Successful positioning will also help create a strong brand image and differentiate itself
from competitors, strengthening Seaclues Coffee Shop's presence in a competitive
market.
Conclusion
Seaclues Coffee Shop has succeeded in innovating coffee beverage products by
creating a unique and quality coffee identity. Quality is sourced from quality coffee beans
as raw materials that go through the roasting process by experienced roasters. To ensure
the availability of quality raw materials, Seacules Coffee Shop has built collaborations
with coffee farmers. The quality of the drinks marketed Through product development
and customer experience, Seaclues Coffeshop has managed to become an exclusive and
highly competitive coffee destination in a busy market.
Seaclues Coffee Shop's segmentation and positioning show a focused approach to
understanding customer needs. With segmentation based on demographics,
psychographics, and behaviour, they target various market segments. They attract
customers with customized coffee varieties, a comfortable environment, and a loyalty
program. Their positioning strategy focuses on the premium coffee experience, with a
commitment to local ingredients and a productivity-supporting atmosphere. Overall,
Seaclues has an adaptive and innovative approach, and the potential to continue to grow
and strengthen the brand image in a competitive market.
Product Development and Positioning Strategies for Seaclues Local Coffee
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4549
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