PROPOSEMARKETINGSTRATEGYFORWARKOPGTO ENTERNEWMICETARGETMARKETINGRESIKCITY FINALPROJECT Inpartialfulfillmentoftherequirements forthemaster’sdegree fromInstitutTeknologiBandung By MUHAMMADBADRUTTAMAM StudentID:29122092 (MasterofBusinessAdministrationProgram) INSTITUTTEKNOLOGIBANDUNG JAN2024 i ABSTRACT PROPOSEMARKETINGSTRATEGYFORWARKOPGTO ENTERNEWMICETARGETMARKETINGRESIKCITY By MuhammadBadruttamam StudentID:29122092 (MasterofBusinessAdministrationProgram) CoffeeconsumptioninIndonesiahasbeenontheriseeveryyear,owingto thegrowingcultureofcoffeeconsumption.Coffeeshops,whicharebusinesses specializinginthesaleofcoffeeproducts,havealsowitnessedanincreaseintheir popularity,aligningwiththeupwardtrendofcoffeeconsumption,particularlyin Indonesia.WarkopG,situatedinthecityofGresikandoperatingwithinthe coffeeindustry,iscapitalizingonthistrendtoestablishitselfasaFoodand Beverage(FnB)enterprisewithauniqueconceptdistinctfromitscompetitors. Overtime,customerengagementincoffeeshopshasevolvedbeyondmerely savoringcoffee,encompassingactivitiessuchasmeetings,co-working, exhibitions,andvariousotherevents.ThisactivityisreferredtoasaMICE activity.Recognizingitspotential,particularlyinthecityofGresik,whichisan industrialcityinEastJava,Indonesia,whereMICEactivitiesareexpectedto experiencecontinuousgrowtheachyear,WarkopGintendstoconductresearchto entertheMICEmarketinthecityofGresik.Generally,MICEactivitiesare hostedinhotelsandexpansiveexhibitionvenuescharacterizedbylargeand roomystructures.WarkopG,ontheotherhand,boastsacapacioussettingalong withacoffeeshopknownforitssimplicity.Therefore,thisresearchwillcenteron theMICEmarket'spotentialinthecityofGresikandhowWarkopG'sUnique SellingPointwilldistinguishitfromothercompetitors.Inordertoformulate WarkopG'smarketingstrategyforenteringtheMICEmarket,thisresearchwill utilizevariousbusinesstools,includingtheValuePropositiontoestablisha uniquesellingpointandseveralothertools.Thedevelopmentofabusiness strategywillinvolvetheuseoftheGo-To-Marketapproachasatoolforcraftinga marketingstrategyfortheproducts/servicesintendedforthetargetmarket.The authoremployedqualitativeresearchtechniques,includingobservationalmethods andinterviewswithmultiplesources,inbothexploratoryandconfirmatory approachestogatherthenecessarydata.Theultimateoutcomeofthisresearchis thedevelopmentofamarketingstrategyaimedatboostingsales. Keywords:GresikCity,Go-To-Market,IncreaseSales,MICEMarket, MarketingStrategy,WarkopG ii ABSTRAK USULANSTRATEGIMARKETINGWARKOPGUNTUK MEMASUKITARGETPASARBARUMICEDIKOTA GRESIK Oleh MuhammadBadruttamam 29122092 (ProgramStudiMagisterAdministrasiBisnis) KonsumsikopidiIndonesiaterusmeningkatsetiaptahunnya,halini disebabkanolehsemakinberkembangnyabudayakonsumsikopi.Kedaikopiyang merupakanbisnisyangkhususmenjualprodukkopijugamengalamipeningkatan popularitasseiringdengantrenpeningkatankonsumsikopi,khususnyadi Indonesia.WarkopG,yangberlokasidikotaGresikdanbergerakdalamindustri kopi,memanfaatkantreniniuntukmenjadikandirinyasebagaiperusahaan MakanandanMinuman(FnB)dengankonsepunikyangberbedadaripara pesaingnya.Seiringberjalannyawaktu,keterlibatanpelanggandikedaikopi telahberkembanglebihdarisekedarmenikmatikopi,mencakupaktivitasseperti rapat,co-working,pameran,danberbagaiacaralainnya.Kegiataninidisebut dengankegiatanMICE.Menyadaripotensiyangdimiliki,khususnyadikota GresikyangmerupakankotaindustridiJawaTimurIndonesia,dimanakegiatan MICEdiperkirakanakanterusmengalamipertumbuhansetiaptahunnya,maka WarkopGbermaksudmelakukanrisetuntukmemasukipasarMICEdikota Gresik..UmumnyakegiatanMICEdiselenggarakandihoteldantempatpameran yangluasdenganbangunanyangbesardanlapang.WarkopG,sebaliknya, menawarkansuasanayangluassertakedaikopiyangterkenaldengan kesederhanaannya.Olehkarenaitu,penelitianiniakanberpusatpadapotensi pasarMICEdikotaGresikdanbagaimanaUniqueSellingPointWarkopGyang akanmembedakannyadengankompetitorlainnya.Untukmerumuskanstrategi pemasaranWarkopGdalammemasukipasarMICE,penelitianiniakan memanfaatkanberbagaialatbisnis,antaralainValuePropositionuntuk menetapkannilaijualyangunikdanbeberapaalatlainnya.Pengembangan strategibisnisakanmelibatkanpenggunaanpendekatanGo-To-Marketsebagai alatuntukmenyusunstrategipemasaranproduk/jasayangditujukanuntuktarget pasar.Penulismenggunakanteknikpenelitiankualitatif,termasukmetode observasidanwawancaradenganberbagaisumber,baikdalampendekatan eksploratifmaupunkonfirmatoriuntukmengumpulkandatayangdiperlukan. Hasilakhirdaripenelitianiniadalahpengembanganstrategipemasaranyang bertujuanuntukmendongkrakpenjualan. KataKunci:KotaGresik,Go-To-Market,Pendapatan,PasarMICE,Strategi Marketing,WarkopG iii PROPOSEMARKETINGSTRATEGYFORWARKOPGTO ENTERNEWMICETARGETMARKETINGRESIKCITY VALIDATIONPAGE By MuhammadBadruttamam StudentID:29122092 MasterofBusinessAdministrationProgram InstitutTeknologiBandung Approved Date02February2024 Supervisor iv DECLARATIONOFNON-PLAGIARISM Plagiarismis: Taking,using,andsubmittingaworkofanother,includinganidea,writing,or invention,asifitwasherorhisown Plagiarismincludes(butnotlimitedto): 1.Quotingverbatimtheworkofanotherwithoutacknowledgementofthesource; 2.Paraphrasingtheworkofanotherwithoutacknowledgementofthesource; 3.Usingtheideaofanotherwithoutacknowledgementofthesource; 4.Submittingtheworkofanotherwithoutidentifyingclearlywhodidthework; 5.Colludingbysubmittingtheworkofanotherasherorhisownwithconsent fromtheother. IunderstandthatPlagiarismiswrong,abreachofacademicintegrity,andagainst Program,School,andUniversity’sPolicyandRegulation. IdeclarethatallmaterialinthisFinalProjectisoriginal,myownwork,anddoes notinvolveplagiarism. Ihavenotallowed,andwillnotallow,anothertocopymyworkwiththeintention ofsubmittingitasherorhisownwork. NameMuhammadBadruttamam StudentID29122092 Signed Date02February2024 v FINALPROJECTGUIDANCE Unpublishedmasters’finalprojectisregisteredandavailableintheLibraryof BandungInstitutofTechnology,andisopenforpublic,providedthattheauthor ownsthecopyrightinaccordancewiththeintellectualpropertyrightsthatare applicableintheLibraryofInstitutTeknologiBandung.Bibliographical referencesareallowedtobeuseinalimitedmanner,howeverthecitationand summarizationcanonlybeproceedupontheauthor’spermissionandmust includethescientificnormofstatingthisfinalprojectasthesource. Thisfinalprojecthastobecitedas: Badruttamam,Muhammad.(2024):ProposeMarketingStrategyforWarkopGto EnterNewMICETargetMarketinGresikCity,Masters’FinalProject, InstitutTeknologiBandung. Reproductionorpublicationofpartsorwholeofthefinalprojectmustbeunder theconsentoftheHeadofGraduateSchool,BandungInstituteofTechnology. vi DECLARATIONPAGE Thisfinalprojectisdedicatedspeciallytomyparents,myfamily,mypartner, WarkopGteams,andanyonewhoalwayssupportmebehindineveryprocessin mylife vii ACKNOWLEDGEMENTS IwouldliketothankAllahSWTbecausethankstothegrace,Iwasgiven theopportunitytocontinuemyeducationandtheopportunitytocompletemy studiesatMBAITB.Iamawarethatmyeducationaljourneywillnotsucceed smoothlywithoutprayersandsupportfromothers,forthatreasonfromthe bottomofmyheartIwouldliketothankallthosewhohavesupportedmeinmy educationaljourney.StudyinghereisoneofmydreamswhichAllahSWThas givenmetheopportunitytocometrue.Forthisreason,Iwouldliketothankall thosewhoprayforandsupportmyeducationaljourney: 1.Myparentsalwaysblessandprayformeinallmyactivities 2.Mr.SonnyRustiadi,SE.,MBA.,Ph.D.,CBAP.whoalwaysguidesme patientlyandsharesextraordinaryknowledge 3.FadlilaSaraswatiS.T.,M.M.whoalwaysaccompany,encourageandpray formeineveryprocessinmylife 4.TheWarkopGteamhelpedmeinsearchingfordataandgavemetimeto focusonworkingonmythesis 5.MyhometownfriendsthatIcan'tmentiononebyone 6.FriendsfromtheMBA67batchwhohelpedindiscussingandsharing knowledge 7.AndotherpartiesbehindthescenethatIcannotmentiononebyone viii TABLEOFCONTENTS ABSTRACT........................................................Error!Bookmarknotdefined.i ABSTRAK..........................................................................................................ii VALIDATIONPAGE...........................................................................................iii DECLARATIONOFNON-PLAGIARISM...........................................................iv FINALPROJECTGUIDANCE.............................................................................v DEDICATIONPAGE............................................................................................vi ACKNOWLEDGEMENTS...................................................................................vii TABLEOFCONTENTS.....................................................................................viii LISTOFAPPENDICES.........................................................................................x LISTOFFIGURES................................................................................................xi LISTOFTABLES................................................................................................xii ChapterIIntroduction.......................................................................................1 I.1Background.........................................................................................1 I.2CompanyProfile.................................................................................8 I.3BusinessIssue...................................................................................13 I.4ResearchQuestionsandResearchObjectives..................................13 I.5ResearchScopeandLimitation........................................................14 ChapterIILiteratureReview............................................................................15 II.1TheoreticalFoundation.....................................................................15 II.1.1PreviousResearch..............................................................16 II.1.2MICEIndustry.....................................................................18 II.1.3MICEAttributes.................................................................21 II.1.4ProblemSolutionFit..........................................................24 II.1.5UserPersona.......................................................................31 II.1.6ValueProposition...............................................................33 II.1.7ProductMarketFit..............................................................35 II.1.8TAMSAMSOM................................................................38 II.1.9Go-To-MarketStrategy......................................................39 II.1.107pMarketingStrategy......................................................41 II.2ConceptualFramework....................................................................43 ChapterIIIResearchMethodology...................................................................44 III.1ResearchDesign...........................................................................44 III.2DataCollectionMethods.............................................................45 III.2.1Observation.......................................................................45 III.2.2Interview...........................................................................46 III.2.3SamplingandDataCollection..........................................52 III.3DataAnalysisMethod..................................................................53 ChapterIVResultsandDiscussion...................................................................55 IV.1Analysis..........................................................................................55 IV.1.1InterviewFindings............................................................55 IV.1.2UserPersonaAnalysis......................................................58 IV.1.3ValuePropositionAnalysis..............................................63 IV.1.4ProblemSolutionFitAnalysis..........................................67 ix IV.1.5TAMSAMSOMAnalysis...............................................68 IV.1.6ProductMarketFitAnalysis..............................................70 IV.2BusinessSolution...........................................................................74 IV.2.1Go-To-MarketStrategy.....................................................75 IV.3ImplementationPlan&Justification.............................................89 ChapterVConclusionandRecommendation..................................................95 V.1Conclusion..................................................................................................95 V.2Recommendation........................................................................................96 REFERENCES......................................................................................................97 APPENDICES.....................................................................................................100 x LISTOFAPPENDICES AppendixAInterviewViaGoogleMeetDocumentation.................................100 AppendixBInterviewViaWhatsappCallDocumentation...............................101 AppendixCInterviewResultandCoding.........................................................102 AppendixDInterviewDataProcessing(ThematicAnalysis)...........................128 xi LISTOFFIGURES FigureI.1CoffeeConsumption2000-2016inIndonesia...................................2 FigureI.2CoffeeConsumptionForecastinIndonesia2016-2021....................2 FigureI.3RiseofCoffeeConsumptioninIndonesia........................................3 FigureI.4AverageRevenueperCapitainCoffeeSegment..............................4 FigureI.5GrowthoftheMICEIndustrybeforePandemicCovid-19...............5 FigureI.6IndonesiaMICEMarketForecast2018-2031...................................7 FigureI.7WarkopGLayout..............................................................................8 FigureI.8WarkopGOutdoorSpace.................................................................9 FigureI.9WarkopGOrganizationalStructure................................................10 FigureI.10WarkopGMenu..............................................................................12 FigureI.11WarkopGSalesfor2Years2020-2022.........................................13 FigureII.1ProblemSolutionFitCanvas...........................................................25 FigureII.2CustomerStateFitSegment............................................................26 FigureII.3ProblemBehaviourFitSegment.....................................................27 FigureII.4CommunicationChannelFitSegment............................................28 FigureII.5SolutionFitSegment.......................................................................29 FigureII.6ProblemsSolutionFitOverview.....................................................30 FigureII.7UserPersonaCanvas.......................................................................32 FigureII.8ValuePropositionCanvas...............................................................34 FigureII.9ProductMarketFitCanvas..............................................................36 FigureII.10TAMSAMSOMMarketResearch.................................................39 FigureII.11Go-To-MarketStrategyProcess......................................................40 FigureII.12Go-To-MarketCanvas.....................................................................41 FigureII.13ConceptualFramework...................................................................43 FigureIII.1ResearchDesign..............................................................................44 FigureIV.1UserPersona1Canvas....................................................................59 FigureIV.1UserPersona2Canvas....................................................................61 FigureIV.1ValuePropositionCanvasAnalysis................................................64 FigureIV.1ProblemSolutionFitCanvasAnalysis............................................67 FigureIV.1TAMSAMSOMAnalysis..............................................................69 FigureIV.1ProductMarketFitCanvasAnalysis...............................................71 FigureIV.1GTMCanvasAnalysis....................................................................83 xii LISTOFTABLES TableI.1CoffeeProducersandExporterRankCountriesInTheWorld(2016- 2017)...................................................................................................1 TableI.2ResearchScopeandLimitation........................................................14 TableII.1AttributesthatMICEDestinationMustHave..................................21 TableII.2ProductMarketFitDescription........................................................36 TableIII.1ObservationTarget...........................................................................45 TableIII.2ExploratoryInterviewGuideline......................................................47 TableIII.3ConfirmatoryInterviewGuideline...................................................49 TableIII.4Sampling&DataCollection............................................................52 TableIII.5DataAnalysisMethod......................................................................53 TableIV.1UserPersona1Details......................................................................59 TableIV.2UserPersona2Details......................................................................61 TableIV.3ValuePropositionAnalysisDetails..................................................65 TableIV.4ShareofMarketWarkopG..............................................................70 TableIV.5ProductMarketFitAnalysisDetails................................................72 TableIV.6MarketAnalysis................................................................................75 TableIV.7MarketSelection...............................................................................77 TableIV.8CustomerAcquisition.......................................................................81 TableIV.9GTMCanvasDetails........................................................................84 TableIV.10ImplementationPlan.........................................................................92 TableIV.11FinancialBudgeting..........................................................................96 1 ChapterIIntroduction I.1Background Indonesiaused1,7millionbagsofcoffeewithaweightof60kgin theyear2000,andbytheyear2016,thisnumberhasclimbedby170%.A country'sincreasedcoffeeconsumptionwillhavevariouspositiveeffects, likeraisingmanufacturers'knowledgeofthevalueofquality,and encouragingsmallandmediumbusinessgrowth. FigureI.2CoffeeConsumptionForecastinIndonesia2016-2021 Source:Databoks.co.id,2018 Thefirstwaveofthecoffeebusinessbeganinthe1980sand1990s, whenthemajorityofIndonesiansdrankunbrandedbrewedcoffeealongwith instantcoffeefromfournationalbrands:KapalApi(1927),KopiABC(1985), Nescafe(1971),andTorabika(1977).Thesecondwavestartedin2000.At thisperiod,thehabitofdrinkingcoffeeincoffeeshopschangedfrombeing onetosatisfybothpracticalandemotionalrequirementstoonewhere drinkingcoffeeinacontemporaryestablishmentwasseenasprestige- advancing.TheadventofCoffeeBean(2001)andStarbucks(2002),the worldwidechainsofsignificantAmericanbrands,characterizedthisperiod. Thethirdwavesawanincreaseincoffeeenjoymentbetweenearly2010and 2 2015,asseenbytheemergenceofspecialtycoffeebusinesses.Customers havegrownincreasinglyinterestedinthecoffee-makingprocessaswellas theprestigeofsippingcoffeeinacoffeeshop(Widiati,2020) The"ThirdWaveofCoffeeConsumption"isbeginninginIndonesia, asseenbythegrowthofspecialtyroastersandartisanalcoffeeshops, especiallyinbigcities,thatplaceanemphasisonlocallyproduced,single- originbeans.Theexpansionoftheartisanalcoffeeindustryplacesa significantfocusonsupportinglocalfarmersandroasters.Figure1.3 illustratestheupwardtrendinIndonesiancoffeeconsumptionfrom2018, whichreachedtheequivalentof4.8million60kgbagsofcoffeeintheyears 2018–2019(Nurhayati,2020). FigureI.3RiseofCoffeeConsumptioninIndonesia Source:Statista,2020 TheriseincoffeeconsumptioninIndonesiaisaresultoftheurban lifestyleofthecountry'scitizens,particularlyinmajorcitieslikeJakarta. Coffeeshopsaregrowingpopularinmetropolitanareasasafantasticspotto haveyourmorningbrew,catchupwithfriends,searchforpositiveenergy, meetwithcolleagues,etc.Acoffeeshopthesedaysservesasameetingspot forparentsaswellasacasualgatheringplaceformillennialandGeneration Ztodiscussbusinessandaplacetolookforinspiration. 3 FigureI.4AverageRevenueperCapitainCoffeeSegment Source:Statista,2020 AccordingtoFigure1.5,theincomeforecastforavarietyofcoffee sectorshasincreased,notablyforroastedcoffee.Despitethefactthatthedata indicatesafallinincomein2020asaresultoftheanticipatedeffectsof Covid-19,thegraphicpredictsthatincomewillcontinuetoriseintheyears thatfollow.Giventhesituation,thereisfiercecompetitionamongcoffee businessestowinmarketshare.Additionally,ithasbeenincreasingly difficultforthesebusinessestostandoutfromthecompetitionandmaintaina competitiveedge.Itiscrucialforthebrandtohaveadurablecompetitive edgeandhaveastrongerbusinessplanforacoffeeshop.Overtime,the coffeebusinesswhichinitiallyonlysoldcoffeedevelopedintocompeting conceptsandthemes.Coffeeshopbusinessactorscompetewitheachotherto becomemorecreativeinattractingcustomers,bothintermsofservice, productssold,conceptsandfacilitiesprovided.Thisistosupportthe community'sgrowinghabitofvisitingcoffeeshops,whichinitiallyonly enjoyedcoffee,thendevelopedintoacultureofhangingout,thendeveloped intoevents,meetings,communityevents,kopdar,andmanymore. Theseactivitiesindicatethatthecoffeeshopmarketcandevelopinto theareaoftheMICEmarket.MICEisanabbreviationformeeting,incentive, 4 conferenceandexhibition.MICEisacombinationofbusinessandtourism activities(Yuniati,2021).Ingeneral,theactivityofbusinessesthat implementMICEconsistofmeetings,conferencesandexhibitionswhich involveinfrastructureandtourismactivities.ThedevelopmentofMICEin theworldshowedasignificantpacefrom1963to2017.Accordingtodata fromICCA(InternationalCongressandConventionAssociation),thegrowth oftheMICEindustryisveryhigh,reaching30%peryear.Figure1.6shows thegrowthoftheMICEindustryfrom1963to2017. FigureI.5GrowthoftheMICEIndustryBeforePandemicCovid-19 Source:ICCAdata(www.iccaworld.org) Fromthefiguresdiscussedhere,itisclearthatthedevelopmentofthe MICEbusinesshasincreaseddrastically.However,whentheCovid-19 pandemicspreadthroughouttheworldatthebeginningof2020,allbusiness sectorswereaffected,includingtheMICEbusiness.AccordingtoUNWTO (UnitedNationWorldTourismOrganization),thenumberoftripsby internationaltourists,whichwasoriginally1.3billiontripsandwasestimated toreach1.6billiontripsin2020,suddenlyexperiencedadrasticdeclineof 96.9%attheendof2020.Notonlyinternationaltouristsdecreased,but activitieswithinthecountrybytheIndonesianpeoplewasalsodrastically reduced.AccordingtoBPS(2020),people'sbehaviorduringtheCovid-19 pandemicasofSeptember2020,asmanyas76.69%ofpeopleavoided 5 crowds.Thishasabigimpactontheeconomicsectorwhichalsohasan impactonbusinessactivities. In2022,theCovid-19pandemichadgraduallysubsided.The economyhasbeenstartingtoslowlypickupagain.Likewise,business conditionsinanysectorarestartingtoslowlyimprove.WarkopG,asa businessinthefoodandbeveragesector,specificallyacoffeeshop,muststart thinkingabouthowtoridetherisingeconomicwaves.WarkopG,whichis locatedinthecityofGresik,whichisknownasanindustrialcity,hasan abundanceofofficeworkers.InthecityofGresik,thereare843mediumand largescalecompanies(BPS,2023)andcomparedto2013thereare402(BPS, 2013).Thisincreaseofmorethan100%indicatesthatGresikhasgrownin theindustrialsectoraswellasthenumberofworkers. MICEindustryinIndonesiahasexperiencedsignificantgrowthand hasbecomeanattractivedestinationforbothdomesticandinternational companies.Thecountry'sstrongeconomicgrowth,growingmiddleclass, expandingconsumermarket,andincreasingdisposableincomehaveattracted bothlocalandinternationalcompanies,leadingtoapositiveimpactonthe localeconomy(Analytica,2023).AccordingtoAnalytica(2023),research conductedshowsthattheMICEmarketinIndonesiaisexpectedto experiencesignificantgrowthinthenextfewyearsuntil2031,because Indonesiahasbeensuccessfulinorganizingeventsandadoptingtechnology intheirimplementation.ThiscannotbeseparatedfromIndonesia'sstrategic locationintheMICEregioninSoutheastAsia,andgoodrelationswith neighboringcountries.Figure1.7willshowforecastingofmarket developmentsinIndonesiafrom2018-2031. 6 FigureI.6IndonesiaMICEMarketForecast2018-2031 Source:www.astuteanalytica.com OneofthereasonsfortheincreaseintheMICEmarketinIndonesiais sustainableinfrastructuredevelopment.Indonesiahasinvestedheavilyin infrastructuredevelopment,suchasregionalexpansion,buildingairports, hotelsandconventioncenters,andtransportationroutes.Thisdevelopment supportstheincreasingMICEmarketandquitehighmarketdemand.As Indonesia'sdevelopmentincreases,itcanbesaidthattheincreaseinmarket demandforMICEwillalsoincrease.Thisisanewopportunityforbusiness peopletowelcometheMICEmarketwhichhasagoodtrendinthenextfew years. AccordingtoNoor(2020),MICEbusinesscustomerscomeinlarge numberswith7timesbiggerspendingthanordinarycustomers.MICE customersenjoymomentsandeventsmoreanddon'tthinkabouttheir expensesbecausetheyhappenonceinacertainperiodoftime.WarkopG seesthisasabusinessopportunityforthefutureinordertoincreasesalesin thepost-Covid-19period.WiththeprospectofMICEincreasing,and promisingmarketopportunities,thecompanyhastobranchoutintheMICE industry.IfWarkopGcanmaximizethisopportunitytoprogressfurther,it willbeabreakthroughforthiscompanyinthepost-Covid-19pandemic. I.2CompanyProfile 7 WarkopGstarttooperateinNovember2020.LocatedonJl.KH. Syafi'i75GresikCity,EastJava,wherethelocationisstrategicandisoften passedbythecommunity,especiallyfactoryemployees.ThenameWarkopG istakenfromtheword“Warkop”whichhastheconnotationofaplaceto relax,comparedtothenameCafewhichisknowntobeexclusiveandalittle expensive.Thename“G”itselfwastakenfromourgrandfathernamed GimanwhereheownedtheBaksoH.Gimanbusiness,aswellasrepresenting thefirstwordsofthecityofGresik.ThethemeoftraditionalJavanese villagesmakesWarkopGdifferentfromtheothers,eventhefirstcafewitha classicJavanesethemeinthecityofGresik. Theatmospherebuiltiscomfort,cozy,andsimple,asifthecustomer isrestinginthecountryside.Themajorityoftheinteriorusesoldteakwood andayellowlightinstallationthataddsaruralimpression.WarkopG providesoutdoor,semi-outdoorandindoorvenues.Forexample,WarkopG providesoldhutsontheeastsidewhicharelinedupneatlyasifcustomers wererestingontheedgeofaricefield.WarkopGalsoprovidesmeeting roomsforcustomerswhowishtohaveprivatemeetings. FigureI.7WarkopGlayout 8 FigureI.8WarkopGOutdoorSpace I.2.1Vision Asacoffeeshop,WarkopGhasavisiontoachieveitsgoals:Beinga placetomeetandgatherforthecommunitybyprioritizingcomfortwithan ancientJavanesetheme. I.2.2Mission Toachievethevisionabove,themissionsofWarkopGareasfollows: 1.Providingcustomer-firstserviceisking 2.ProvidingfacilitiesthatsupportthecomfortofancientJavanesetheme 3.Providingaffordablepricesthatcompetewithotherplaces 4.Providingqualityfoodanddrinkswithdelicioustasteandtheexperience ofenjoyingthecountryside. I.2.3OrganizationStructure WarkopGisafamily-ownedbusiness,whichisrunbythefamily itselfwithoutanyotherparty.WarkopGhas10employeeswithdifferentjob roles.TheorganizationalstructureofWarkopGisasfollows: 9 FigureI.9WarkopGOrganizationalStructure TheinvestoristheparentoftheWarkopGManager.TheWarkopG Manageralsoservesastheheadofstock.Alltypesofoperationsaremanaged bytheManageralone,includingmanagingemployees.The10employees include2cashiers,2baristas,2kitchensand4waitresses.WarkopGusesa shiftsystemandisopenfor30fulldays.Eachemployeeisresponsiblefor theirrespectivestations.Managersareresponsibleforwarehouse,financial management,andhumanresourcemanagement,whichwillbereportedto investorseverymonth. I.2.4CustomerProfile 1.MarketSegmentation ThemarketsegmentsofWarkopGareFamily,Community, Corporate,andregularcustomerswhowanttofindacomfortableplaceto hangoutandarelookingforaspaciousplace,aswellaslowprices.For example,familieswhobringcarsandcomeingroupsofmorethan3people, communitieslookingforalargeplaceforevents,corporatelookingfor affordableandcomfortablemeetingorhangoutplaces. 10 2.TargetMarket Demographically,WarkopG'stargetmarketispeoplerangingfrom 18-60yearsold,withanincomeofmorethanRp.500,000permonth.Itis alsosupportedbytheteakwoodconceptwhichisalsopopularamongthose aged40andover.Psychographically,WarkopGtargetscustomerswhoare lookingforacomfortableplacewithanold-fashionedthemewherethe yellowlightsinstallationgivesadifferentimpressionfromotherindustrial cafes. 3.Positioning ThemarketpositioningofWarkopGisafriendlyplacewherethereis nofixedclosingtime.Wecloseonlywhenthereisnooneafter10pm. WarkopGhasthetagline"Bukabendinokecualibakulelali"whichmeans “openeverydayunlessthesellerforgets”.Thisgivesafriendlyandfunny impressionsothatcustomerswillbemorerelaxedaboutWarkopG.The atmospherebuiltiscomfort,cozy,andsimple,asifthecustomerisrestingin thecountryside.Themajorityoftheinteriorusesoldteakwoodandusesa yellowlightinstallationthataddsaruralimpression.WarkopGprovides outdoor,semi-outdoorandindoorvenues.Forexample,WarkopGprovides oldhutsontheeastsidewhicharelinedupneatlyasifcustomerswere restingontheedgeofaricefield.WarkopGalsoprovidesmeetingroomsfor customerswhowishtohaveprivatemeetings. I.2.4ProductOffering WarkopGprovidesamenuoffoodanddrinksrangingfromthe traditionaltothemodern.Thefollowingisaphotoofthemenuofferedby WarkopGtocustomers. 11 FigureI.10WarkopGMenu “Unjukkkan”meansdrink,while“Dhaharan”meansfood.From severalmenus,bothcontemporaryandtraditionalmenus,allwithinaprice rangebelow20thousandrupiahs.Inrunningcommunityevents,WarkopG doesnothaveaspecialmenuforevents.Italldependsonthecustomer's requesttocustomizethemenuyouwanttoorder.Ifyouwanttousea meetingroom,WarkopGonlyprovidesameetingroomrentalpriceofRp. 100,000perhourandRp.150,000pertwohours,withfreesoundsystemand projector. 12 I.3BusinessIssue FigureI.11WarkopGSalesfor2years2020-2022 WarkopGwasfoundedin2020.Beforestartingoperations,investors andmanagersdeterminedWarkopG'sestimatedincomeinthenext6months tothefirstyear,namelyIDR.50,000,000permonthiscalculatedbasedonan analysisofthetargetmarkettobeaddressed.Wealsotookintoaccountthe situationofCovid-19whichatthattimewasstartingtoenterIndonesia, especiallythecityofGresik.Afterrunningfor1year,thefactisthatWarkop G'sincomeisaboveourestimate,namelyatanaverageofIDR75,000,000- 80,000,000permonthandcanbesaidtobequitestable.Untilenteringthe secondyear,atthattimetheomnicronvirusoutbreakbegantospreadand begantoappeartohaveanimpactonWarkopG'sincome.Itcanbeseenin thegraphinFigureI.11,inDecember2021therewasadeclinecomparedto previousmonths.Inearly2022,incomebegantostabilizeagainbutnotas wellasinthefirstyear.ConsideringthattheCovid-19outbreakhasbegunto subsideinmid-2022,andourestimatesofrevenueduringCovid-19,we believethataftertheCovid-19outbreakrevenuecanbefurtherincreased. Investorsandmanagersplantoincreasesalesanddeveloptorevisitthe marketpotentialinGresikCity.Marketanalysisandgoodmarketing strategiesareneededtoachievethisgoal.InvestorsplantorenovateWarkop Gtomeetthedemandsofthetargetmarket,soitisnecessarytoanalyzehow WarkopGwillchangeandincreasesales. 13 I.4ResearchQuestionsandResearchObjectives ResearchQuestionfromthisstudyinansweringexistingproblemare: 1.HowshouldtheMICEopportunitybepursuedbyWarkopG. 2.HowdoesWarkopGcaptureUSPforthenewMICEopportunity. 3.WhatisthebestWarkopGmarketingbusinessstrategyforthenewMICE opportunity. ResearchObjectivesfromthisstudytoanswertheresearchquestionare: 1.TomakesurewhethertoMICEopportunityissuitableforWarkopG 2.ToproposenewUSPforWarkopGtocaptureMICEopportunity 3.TosuggestamarketingbusinessstrategyaccordingtothenewMICE opportunity I.5ResearchScopeandLimitation ThisstudywillanalyzetheinternalandexternalconditionsofWarkop GwiththeaimofdevelopinganewbusinessstrategytomaximizeWarkop G'spotential.Specifically,thisresearchwillprovideanimplementationplan thatcanbeimplementedinWarkopGinthefuture.Inthisstudy,the provisionofboundariesisnecessarytofocusonthescopeoftheproblem. ThescopeforthisresearchisshowninTable1.2. TableI.2ResearchScopeandLimitation No Limitation Description 1ObjectofResearchMICEmarketstakeholdersinGresikCity 2AnalysisTechniques BusinessAnalysisMethodandBusiness StrategyFormulationusingrelatedtheories andconcept 3ResearchObjectives Developamarketingbusinessstrategyalign withMICEconceptandconductan implementationplan 14 ChapterIILiteratureReview Thischapterexplainthetheoreticalbasisandconceptualframework.The preparationofthisframeworkisbasedonaliteraturereviewtoassistinthedata analysisprocessandsearchforsourcestobeusedasresearchsamples,aswellas toexplainhowresearcherswork.Then,aconciseandlogicalresearchstrategy wasdevelopedbasedontheresearcher'sthoughtsandbeliefssupportedbythe methodologyforthepurposeofcarryingoutthisresearch. II.1TheoreticalFoundation DuringtheCovid-19pandemic,almostallbusinesssectorsin Indonesiaexperiencedadecline,especiallytheF&Bsector,andquiteafew ofthesebusinessactorsclosedtheirbusinessesbecausetheywereunableto beartheoperationalburden.Startingin2022,businessactorsfromvarious sectorshadbeguntoriseasCovid-19subsides.F&Bbusinessactorsare competingwitheachothertoadapttochangingtrendssincethepandemic.It isnotjustamatteroftaste,butaconceptthatrequirescreativityfromthe ownerswhoadapttotheneedsofsociety.Strategydevelopmentstartsfroma marketingperspective,operationalaspect,andhumanresourceaspect.The developmentofbusinessstrategiesisnoneotherthanboostingrevenueand profits.Tobesuccessful,thesebusinessactorsmustdevelop.Increasing incomeandtheopportunitytoutilizetheexperiencecurvetolowerthecost ofgoodssoldaretwobenefitsoffurthergrowth(Storbacka,2008). OneofthestrategiesofseverallargeF&Bbusinessesistodevelopby followingthewaveofthetourismbusinesswhichisrecoveringafterthe pandemic.Thetourismbusiness,whichinitiallyalmostcompletelydied duringthepandemic,isstartingtograduallyimprove.Thetourismbusiness cannotbeseparatedfromthetermMICE(Meeting,Incentives,Convention, Exhibition).AccordingtoNoor(2020),MICEandtourismcannotbe separated,thisisbecauseingeneralMICEusesalotoftourisminfrastructure. 15 However,asthetrenddevelops,MICEisnotonlyfocusedontourism activitiesandisstartingtoexpandintobusinessandtourismcollaborations. II.1.1 PreviousResearch Thisresearchrelatestothetheoreticalconceptofdevelopinganew businessstrategywiththeadditionalMICEconcept.Previousresearch discussingMICEmarketandbusinessdevelopmentstrategyisusedto supportandprovideadditionalinformationincarryingoutthisresearch.The literatureusedinthisresearcharejournalsandsourcesrelatedtotheF&B business,especiallycafeandalsorelatedtoMICEbusiness. ThefirstliteratureisamodulewrittenbySambuaga(2018)which explainsthegeneralconceptofMICEmanagement.Thismoduleexplainsthe conceptofMICE,thestructureoftheMICEbusiness,severalsupporting pointsforrunningaMICEbusiness,humanresourcemanagementinthe MICEbusiness,marketingstrategies,salesandbusinesspromotionsMICE, andwhatthebiddingstrategyisinrunningaMICEbusiness.Ingeneral,this moduleexplainswhatfactorsneedtobeconsideredinimplementingaMICE business.InthismoduleitisexplainedthataMICEbusinessmustpreparea productthatiscategorizedandreadytosellinthepackagesprovided.MICE businesslocationsarerecommendedthatareeasytoreachandcloseto severalvitalplacessuchashotels,citycenters,shoppingcentersandfree fromtrafficjams.HumanresourcesforMICEneedsneedtobemaximized dependingontheconceptandstrategyimplemented.Youcanalsoattract severaleventorganizerstomakethingseasier,butsometimesthereare difficultiesinorganizingtheteambecausethereisaseparatemanagerforthe eventorganizer.ThemarketingstrategyusesSWOTtoanalyzethesituation, thencontinueswithmarketresearchtoobtainpositioningandmarketing strategiesbothofflineandonline. ThenextresearchisresearchbyReshetnikovaandMagomedov (2019),whichdiscussestheprocessofcooperationbetweenforeignprivate 16 companiesandthelocalgovernmentregardingindustrialdevelopmentlinked toMICE.ThisresearchaimstohelpallpartiesconnectedtotheMICE industrytoreachanewlevelinbusinessdevelopment.Theresultsofthis researchshowthattheroleoflocalgovernmentisasaproviderofthe environmentforimplementingMICEbusiness,includinginfrastructure, attractinginvestment,increasinghotelcapacityandseveralfacilities,and incentivefactors.TosupportasuccessfulMICEbusiness,theremustbe cooperationandalignmentofthevisionandmissionofeachstakeholder concerned.Themostsignificantinstrumentisthetourismsector.