CHAPTER 4 DATA ANALYSIS 4.1 Context Analysis In the first phase the student students will experience first-hand: how it feels to start a business. First they must decide on the business venture that they would like to own and operate. And the goal from IBE 1 is the students able to make business plan and get loan from the bank. Divided into 10 different groups with each member of nearly twenty people, they will receive instruction for one semester to complete a business plan that they want to run in the next semester. After IBE 1 is completed, then they will enter the IBE 2. In this semester students are required to realize the business plan that has been made and are planned for one semester. The goal of this semester is the student running the business and be able to improve and also make a profit. By analysis the context, the period of four months to make a good business plan and ready to receive a loan from the bank was very enough. Compare with Ideosouce that only took three months for the participants to get a business plan that is ready to run. And with resources twenty people, I think they could make a more detailed business plan and great product to meet market demand. Because normally in the startup company they only three until five person. Goals that students to run their business in accordance with the business plan and make a profit, indicating that the products they make meet with the market needs. And the goal to be able make an improvement for their business means that in the end of the program their business or product should be market fit. 4.2 Input Analysis In running the IBE program, they will get quite a lot of input during the two semesters is given in the form of a syllabus (APPENDIX A and B). Each semester consists 16 weeks and there they will get guidance and knowledge that relevant with their business. They also get input from the other classes like human resources management, marketing, financial analysis, business law, and corporate ethics. The first semester, each company undergoes the business preparation stage. Usually it starts from idea creation, and then to feasibility 18 study, vendor selection, product development, financial planning and finally pitching to investors, in this case, the bank affiliated with the program. In the second semester, the company is expected to execute their business plan and hurdled into a stage of selling frenzy to reach a certain amount of sales target. IBE course follows the general steps in a traditional business creation, as shown in Figure 4.1. Generally, these steps are the most common steps taken by first time entrepreneurs to start their own business in Indonesia. Figure 4.1 Stages in IBE When seen from the stage at IBE program, the business plan is based on the feasibility study by conducting a market survey of the idea that they form the beginning. In fact, as a first entrepreneur it is quite hard to do to get the product market fit. Market survey carried out at the beginning usually based on assumptions. It is filled (again) with sheer common sense, assumptions and typical “what others are doing”. And this can make planning what they wrote in the business plan does not valid to the market of the product. 19 After viewing the syllabus, the IBE program itself more focus in the development business plan rather than its products. Development of a business plan conducted for four weeks, longer than the development of a product just three weeks. Different from the Modern Business Plan Approach, which is more focused on developing products based on market demand and then developed a business plan after finding the product market fit. In this approach, we are required to validate consumers repeatedly to find products that fit market. If there is a discrepancy between the product and the market (whether products are not accepted by the market or the market is too small for the products), then we can do a pivot as quickly as possible. So that the business strategy we have made in the business plan is more effective because the product has a market fit. 4.3 Process Analysis 4.3.1 Overall Planned Tactics Based on the document review method, the promotional tactics that are stated in most of subject’s business plan are: Table 4.1 Taktics Plan IBE Company 2013 No. Tactics Percentage Company 1 Magazine 80% Adipati, Avoir, Bricks, Borneo, Circa, Cakra, DEI, Dixie 2 Social Media 100% All 3 Website 100% All 4 Video Commercial 70% Adipati, Avoir, Borneo, Circa, Cakra, DEI, Evishawa 5 Endorsement 90% Adipati, Avoir, Bricks, Borneo, Circa, Cakra, Dixie, Evishawa, Exe 6 Printed Commercial 100% All 7 Consignment 80% Adipati, Bricks, Circa, Cakra, DEI Dixie, Evishawa, Exe 8 Create Event 90% Adipati, Avoir, Bricks, Borneo, Circa, Cakra, DEI, Dixie, Exe 9 Exhibition 100% All 10 Personal Selling 100% All 20 From the above table we can see that on average, 90% of subjects plan to use the same overall tactics. What is quite interesting is that most of the tactics presented are quite hard to execute even for a more mature organization, such as getting magazine exposure, social media marketing, creating an e-commerce website, creating a video commercial that becomes viral, and getting endorsement deal with artist. This proves that, for the first entrepreneur they make will make a plan that "what others are doing". But in the case of startup, usually they will choose a different strategy that is unique and can compete with the general strategy that high cost. As an example “Mak Icih” who use twitter strategy that is almost free while others have not thought of using this strategy. 4.3.2 Process Analysis Results As part of the process analysis, planned tactics are then compared to the final report to look at the percentage of realization. The process analysis focuses on the direct immediate result from an activity, for instance, if a company planned to have a website then the output is a website. Every tactics that are stated by each company are evaluated through this process. To demonstrate how the researcher conducted the output evaluation, below is the evaluation process for Exe Company. Exe Company Output Evaluation Company name : Exe Product : Alumo, Folde, Cibum Price : IDR 300,000, IDR 350,000, IDR 10,000 Table 4.2 Plan Tactics, Realization, and % Actualization EXE COMPANY PLAN TACTICS REALIZATION % ACTUALIZATION Online & Social Media a. Website Yes 100% b. Social Media Twitter Yes 67% Instagram Yes Facebook No Printed Commercial Poster Yes 40% Flyer No x-banner No 21 6 Sticker No Lookbook Yes Exhibition Trademark Yes PopUp No 40% Next Level Yes Keuken No Inacraft No Car Free Day No Direct Sales Personal Selling Yes 100% Event Based Campaign Freeze Mob No 29% Mascot Apparence No Chinese New Year Event No Valentine Event Yes Game/Quiz No 50% Discount Yes Voucher No Consigment Reseller No 0% Endorsement Brand Ambassador No 0% The complete result for every company output evaluation is shown in table below. Table 4.3 Percentage of Tactics Plan No Strategy Adipati Avoir Bricks Borneo Circa Cakra DEI Dixie Evishawa Exe Average 1 Magazine 0% 0% 0% 0% 33.3% 0% 0% 0% - - 4.16% 2 Social Media 67% 75% 67% 100% 40% 33% 50% 50% 50% 67% 59.9% 3 Website 100% 100% 0% 100% 100% 50% 100% 100% 100% 100% 85.5% 4 Video Commercial 0% 0% - 0% 33.3% 100% 0% - 0% - 19.04% 5 Endorsement 71.4% 0% 40% 0% 40% 0% - 0% 0% 0% 16.82% 6 Printed Commercial 100% 37.5% 80% 50% 100% 75% 50% 67% 50% 40% 64.95% 7 Consignment 25% - 16.7% - 0% 6.25% 0% 0% 0% 0% 5.99% 8 Create Event 14.3% 33.3% 25% 28.6% 64% 44.4% 42.8% 0% - 28.6% 31.22% 9 Exhibition 33.3% 20% 33.3% 67% 25% 25% 20% 60% 16.7% 33.3% 33.4% 10 Personal Selling 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Average 51.1 40.64 40.22 49.51 53.56 43.36 40.31 41.89 39.59 46.11 44.63% As we can see, on average only 44.63% of planned tactics are having a definite realize. The lowest realization percentage is Evishawa Company which only average 39.59% and the 22 highest is Circa Company having a 53.56% output deliverance. It demonstrates the low realization of plans they have made at the beginning. This is because the early assumptions plan "what others are doing". But it is not actually necessarily for their business such as TVC on TV.