How to cite:
Rezhania Jelly Kriteria. (2021). Digitalization of marketing in amadanom
dampit coffee SMEs. Journal Eduvest. 1(7): 652-659
E-ISSN:
2775-3727
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Eduvest – Journal of Universal Studies
Volume 1 Number 7, July 2021
p- ISSN 2775-3735 e-ISSN 2775-3727
DIGITALIZATION OF MARKETING IN AMADANOM DAMPIT
COFFEE SMEs
ARTICLE INFO ABSTRACT
Received:
July, 4
th
2021
Revised:
July, 9
th
2021
Approved:
July, 16
th
2021
This study aims to determine and analyze how the application of
digitalization of marketing in Small and Medium Enterprises Coffee
Amadanom in Dampit District, Malang Regency. This research is a
research with a qualitative descriptive approach. Researchers want
to do research with a natural background or according to the
existing context. The researcher wants to reveal the facts related to
marketing management in an effort to digitize marketing in the
Amadanom Coffee Small and Medium Enterprises, Dampit District.
Sources of research data obtained through interviews and
observations on six specified informants. The results showed that
online marketing activities were carried out very well in UKM Tani
Harapan. Offline and online marketing play a role in supporting
business marketing. The application of online marketing has a
significant impact on increasing income every year. With the
implementation of digital marketing, the company's goals are easier
to achieve and facilitate integration with other companies. It can be
concluded that the application of digital marketing not only
facilitates marketing activities carried out by business units but also
improves the cooperative relationship between these business units
and other business actors.
KEYWORDS
Digital marketing, SMEs, Coffee
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
INTRODUCTION
Marketing is part of company management and is also a very important factor
(Selang, 2013) because marketing will directly affect the smoothness and success of the
company in achieving its goals. Companies need to know the right marketing strategy for
the products to be sold in the market (Sari, Wibowo, & Murwani, 2015). One of the tips
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Digitalization of marketing in amadanom dampit coffee SMEs 653
that can be done is using digital marketing. The company's success in marketing products
is highly dependent on the marketing strategy carried out because, with the implementation
of the right marketing strategy, the company can meet consumer demand, maintain business
continuity and development (Firmansyah, 2019).
In today's era, online marketing is suitable for newly started businesses to increase
sales turnover. With online marketing at the Harapan Amadanom Dampit Farmers Group,
it is hoped that it will be more effective and be able to save marketing costs.
The Indonesian Internet Service Provider (APJII) in 2019, stated that internet users
in Indonesia were dominated by the age of 16 - 64 years, almost the majority of the total
number of internet users in Indonesia (38.4%) (Siswoto, 2020). This means that internet
users are included in the category of the digital native group. This age category has a very
active character in using digital technology networks and has skills in operating internet-
based technology (Miranda & Lubis, 2017). This condition certainly needs to be a concern
for business actors to optimize marketing through digital media.
World internet users currently reach 4.5 billion or 60% of the world's population
and social media users have reached 3.8 billion (Moley & Nellyaningsih, 2021). In
Indonesia, the number of internet users is very high, reaching 175.4 million active internet
users and 160 million social media users (Kusumawardani & Hanggoro, 2018). The social
media most widely used by Indonesian internet users are YouTube, WhatsApp, Facebook,
Instagram, Twitter, Line, and FB Messenger.
The development of the coffee business in Indonesia has increased, with the
appearance of the proliferation of coffee businesses in every corner of the city (Kustiari,
2016). Both a simple coffee business to a luxurious coffee business with complete facilities.
Overall, the development of the domestic processed coffee industry is still very promising
(Suharyon & Busyra, 2019). For the development of the coffee business in East Java,
especially Malang, it will become a national coffee development cluster in 2020 so it is
necessary to support synergy between stakeholders so that the program can run well,
namely coffee development from upstream to downstream (Permatasari, Basith, & Mulyati,
2018). Where in addition to coffee plantations in Ampelgading, Tirtoyudo, and Dampit,
there are also in Karangploso on the slopes of Mount Arjuno, Malang Regency.
One of the areas in Dampit District that have potential in developing coffee
cultivation and agro-industry is Amadanom Village. Amadanom Village is developing in
the tourism sector by realizing a Tourism Village by creating a place called Coffee Garden
Ecotourism which presents many things about coffee that is grown and famous in Malang
Regency. The problem of marketing coffee commodities in Amadanom Village is triggered
by the lack of marketing information for digital products or online marketing (Panuju,
2019) Lack of online market information, limited human resources, and lack of facilities
that support the digital marketing process (Basry & Sari, 2018). Smallholder coffee farmers
in Amadanom Village can produce good quality coffee, but farmers are still not able to
market their products.
This situation makes the bargaining position of farmers weak in marketing coffee
commodities in Amadanom Village and tends to sell offline with buyers coming directly.
The role of retailers is more prominent and the profits obtained by retailers are greater than
the profits received by farmers in Amadanom Village. If the Harapan Farmers Group has
implemented a digital or online marketing process, farmers will get greater profits.
One of the things that small and medium business actors often complain about is
the lack of Knowledge Transfer, especially in the field of digital marketing. This, then
became the main focus, especially in the era of broadband technology where there has been
a shift in consumer behavior from shopping directly to switching to online shopping
behavior. This is the impact of a phenomenon known as The Network Effect, where a
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Volume 1 Number 7, July 2021
654 http://eduvest.greenvest.co.id
product's current sales depend not only on quality but on how big the network is associated
with the product (Gretz & Basuroy, 2013). This condition encourages the need for more
efforts to focus on developing digital marketing. Therefore, this study aims to determine
and analyze how the application of digitalization of marketing in Small and Medium
Enterprises Coffee Amadanom in Dampit District, Malang Regency.
RESEARCH METHODS
The research conducted at Amadanom Coffee Small and Medium Enterprises,
Dampit District, Malang Regency is a research with a qualitative descriptive approach that
aims to describe written words that are compiled based on oral data, behavioral data and
documents that can be understood in context related to the information that researchers
need in completing scientific work. In an effort to extract data, a SWOT analysis technique
is used which aims to maximize strengths and opportunities, but can minimize weaknesses
and threats. Sources of data in this study are primary data sources obtained through
interviews with 6 informants, location observations, and document data from Kopi
Amadanom SMEs. The secondary data was obtained from books related to marketing
management and digitization. The qualitative data analysis method is carried out in four
activity lines, namely 1) data collection, 2) data reduction, 3) data presentation, 4)
conclusion drawing/verification.
RESULTS AND DISCUSSION
1. Vision and Mission of the Amadanom Dampit Farmers Group
The Amadanom Dampit Farmer's Group has a vision of "Together towards
prosperity" while its mission is "With coffee cultivation to improve the economy"
2. Digitalization of Marketing in Amadanom Dampit Coffee SMEs
Some of the Small and Medium Enterprises in Amadanom Village have not used
digital marketing to its full potential. This can be seen in the marketing area which is
dominated by the Malang area and the surrounding environment. Some in areas outside
East Java, such as Jabotabek, Kalimantan, and other cities, efforts to market their products
only through friendships from phone numbers or Facebook. The results of observations in
several small and medium businesses using digital marketing are more dominated by the
use of mobile phones, which only use social media to the extent of relationships recorded
on their cellphones. The use of fan pages and e-mail marketing has not been used because
they do not know how to use them.
3. Use of FB Ads
Marketing products using Facebook Fans Page is very easy so it is suitable for small
and medium businesses and entrepreneurs who do not understand internet technology
(Safko, 2010). This fan page is made for one product, so in one fan page, an entrepreneur
can load several fan pages. This means one facebook can sell multiple products. Facebook
which is used for business activities is different from Facebook which is used for activities
just to display images or text info.
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The FB ads model for Amadanom coffee SMEs, Dampit District, Malang Regency
is as follows:
Figure 1 Model Fan page
Source: processed data 2020
4. Type of Ads on FB Ads
Several types of advertising can be chosen according to business needs, including:
a. Local awareness, if you run a business, for example, a coffee product shop.
b. Traffic, when running ads by bringing people to your website.
c. Engagement, when focusing on (comments, shares, and likes).
d. Video Views, if you run posts in the form of videos and to find people who are likely to
watch videos.
e. Lead generation, to collect email lead lists on Facebook that we can connect with email
marketing.
f. Product Catalog sales, if we have many online stores on a website.
g. Store Visit, if you are looking for people around the offline store.
The engagement section is the most suitable for small and medium businesses in
areas, especially in rural areas. (Sheth & Sharma, 2005) explain that this engagement is
used by business people to instruct Facebook to find a target market according to the region
they want and even around the world to comment then share and like it. In this section, the
businessman must stand by on his laptop or on his cellphone to serve his customers or be
directed to a WA number so that they can be served anytime anywhere easily.
5. Implementing Marketing Digitization for SME Coffee Amadanom Dampit
Information obtained regarding the implementation of marketing digitalization in
Amadanom Coffee Small and Medium Enterprises is based on the results of interviews
with the Head of the Farmers Group:
“With the digitalization of marketing for UKM Kopi Amadanom, it will be very
helpful in using social media and the like, quite helpful in communicating and adding loyal
customers because visitors prefer to buy through social media and social chat instead of
having to stop by the store. On average, those who visit the workshop or shop are people
who see our social media, every day I always inform and upload new products or repost
our old products and consumers can become co-creators for our products in the future”
Interviews conducted with the workshop manager:
"We always use social media, especially Facebook because there is no need to pay
for posting on Facebook and consumers will contact us directly and they can go directly to
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Volume 1 Number 7, July 2021
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our store or we can send their products via delivery services. It doesn't cost much to
promote, we always use social media to promote and we're also on Instagram so people can
order directly without having to come to our shop.”
6. Consumer Responses to Digitalization of Marketing in Amadanom Coffee
SMEs
a. Supporting factors
The application of marketing digitalization to the Amadanom Coffee UKM in the
Harapan Farmers group, Amadanom Village, Dampit sub-district, the responses from
consumers varied from mentioning a positive impact, such as interviews conducted with
consumers from Surabaya:
"The implementation of marketing digitalization at the Amadanom Coffee SME
affects the purchase of coffee products, making it easier for us to choose products, or
requesting according to our needs, we can directly without having to come to the workshop
at Amandanom Dampit."
"I can directly contact the store without having to come to the place, via:
1. Youtube: https://www.youtube.com/watch?v=gqD-Tnxss2Q.” I can see the
process directly through the YOUTUBE channel. So we know the quality directly without
having to come to the place.
2. Order via Whatsapp: Order via WhatsApp we can order the product without being
present and we can also see the types and kinds of products sent photos via WhatsApp
3. Instagram / IG: Mustika Rumah Reostery (@mustikakopi). Through the IG
account, we can see the process of making coffee to the types and kinds of coffee products
produced.
b. Obstacle factor
There were responses from consumers and managers stating that there were obstacles
or problems in the application of the digitization of the Amadanom Coffee SMEs, such as
the following interviews:
“Website infrastructure and human resources. In providing online services by taking
into account the guidelines for the use of information and communication technology, and
information security, and cybersecurity. Because the Amadanom Coffee UKM, the
application of digitization is still standard, such as only through Whatsapp, Instagram, and
Youtube. For online services through E-Commerce, the UKM Kopi Amadanom (Tani
Harapan) has not yet implemented it.”
"In online services, the Amadanom coffee SME has not routinely updated its
products and activities. For example, offerings through IG have not been up to date in their
products, and also the appearance on Youtube has not been managed by the UKM Kopi
Amandom itself. So it is still difficult for us to find out the newest product.”
7. Implementation of Digital Marketing in terms of SWOT
Based on the research that has been done at UKM Kopi Amadanom, Dampit District,
several things can be stated:
Digitalization of Marketing at UKM Kopi Amadanom Tani hopes that sales services
are divided into 2 applications:
1. Marketing of coffee products from Tani Harapan Amadanom has been carried out
online by making offers using Whatsapp, Instagram and YouTube.
2. Marketing of coffee products from Tani Harapan using offline or direct sales at the
workshop. Where we can see directly the processing process from raw coffee to ready-
to-serve coffee.
How to achieve it and the actions that need to be taken to maximize the strengths
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and seize the opportunities that exist in overcoming the weaknesses and threats faced.
8. Strengths and Weaknesses
Factors strength (strengths) and weaknesses (weaknesses) are factors that come from
the internal SMEs Tani Harapan seen from the regulatory aspect. Some of these factors are
used to monitor the level of success or failure of the organizers of the Harapan Amadanom
Dampit Farmers Group.
a. Strength Factor
1) Availability of existing and adequate supporting main infrastructure (such as
plantation land, internet network).
2) Availability of raw materials originating from the farmer groups themselves so
that in terms of prices they are quite competitive.
3) The implementation of digital marketing strategies has been carried out such as
Whatsapp and Instagram are managed by themselves, and Youtube is managed
by other parties.
4) Availability of equipment for coffee processing such as: Roasted Machine,
Coffee Grinder Machine.
5) There are various ways of selling the coffee, such as: selling processed coffee
beans from the Roast Machine, selling fine coffee products with various brands,
and selling non-branded refined coffee products.
6) The existence of a management and monitoring concept in the form of
management and monitoring information system at the PPL (Field Agricultural
Extension) at the Dampit Regency level.
7) The existence of a financing and assistance system for the Harapan Farmers
Group on an ongoing basis, namely employing a soft loan mechanism for SMEs
from banks such as BNI, BRI, and assistance from Bank Indonesia.
b. Weaknesses
Some of the weaknesses that are indicated as weakening factors in achieving the
objectives of implementing marketing digitalization at UKM Kopi Amadanom Tani
Harapan:
1) Limited human resources in the application of digital marketing, such as:
Instagram is not always updated and intensively promos, they still think that only
Whatsapp is fast in sales.
2) There is no special team to do digital marketing, such as: Instagram, Facebook,
Youtube, and the use of e-commerce, Email marketing, and the implementation
of SEO (Search Engine Optimization).
3) There is no special team to periodically monitor the implementation of digital
marketing, the team only monitors and monitors the process from upstream to
downstream.
9. Opportunities and threats
Opportunities and threats are factors from outside (external), which can affect the
process of implementing digital marketing from demographic aspects, social aspects,
regulatory and infrastructure aspects.
a. Opportunity factor
1) Interest in utilizing digital marketing implementation by UKM Kopi Amadanom Tani
hopes by using Instagram, FB, Whatsapp, Youtube, and SEO (Search Engine
Optimization).
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2) Robusta coffee trend is starting to be known. Unique taste k and special in making
coffee popular with the public. This is supported by the number of media reporting on
Robusta coffee.
3) Coffee has health and beauty properties
4) Coffee in UKM Farmer hopes to have health benefits as a therapy for diet, and this
Amadanom Dampit coffee can be used as a mask for beauty.
5) Support from the government
6) Some forms of support such as providing training and exhibitions. In addition, the East
Java government issued a People's Business Credit (KUR) policy, namely loans with
low-interest rates for SMEs in the East Java region, specifically Malang Regency.
7) Establishment of Coffee Entrepreneurs Association
8) The positive coffee trend has made many entrepreneurs busy opening coffee businesses
so that the Indonesian Coffee Association emerged as a forum for coffee entrepreneurs
to share knowledge, experiences, as well as the latest information about coffee, both
brewed and processed coffee.
9) Development of information technology
10) This is an opportunity that can be utilized in marketing their products through the
internet. Currently, UKM Tani Harapan uses online media as one of its marketing tools,
but UKM Tani Harapan has not used the media to its full potential.
b. Threat Factors
1) The emergence of new competitors with the same product.
2) Transaction security is one of the main considerations for Indonesian digital
consumers when doing online shopping.
3) Indonesia's e-marketing market is being contested by many players and no one
seems to be dominant. Such as online marketing on IG, FB, Youtube, as well
as conducting e-commerce market shares such as Lazada, Tokopedia, and
Shoppe temporarily controlling the Indonesian e-commerce market share.
4) SMEs have limited knowledge about the internet and online marketing, while
the level of awareness of e-commerce products is still low.
5) The majority of SMEs have not received loan funds for the development of
marketing digitalization so it is difficult to develop their business because of
limited capital.
CONCLUSION
The results of this study conclude that so far the efforts that have been made by the
Batam city government to revive the tourism sector are still in the form of cultural arts
events that have been scheduled to be held throughout 2021 and infrastructure development
and city planning to make it more beautiful, attractive, and instagramable. However, public
awareness about the importance of adherence to health protocols is still not optimal.
From the results of this SWOT and QSPM analysis, researchers emphasize more on
paying attention to tackling the threat of Covid-19 first, implementing the CHSE
(Cleanliness, Health, Safety, Environment Sustainable) protocol strictly, and increasing
public awareness so that if the spread of the virus can be suppressed, The tourism event
plan will be right on target because it is witnessed by tourists who visit not only the people
of Batam themselves and the travel bubble which was postponed until June 2021 can be
realized again. Promotion of the safety of visiting the city of Batam can also be intensified.
With this, of course, the GRDP of the city of Batam, especially from the tourism sector,
can increase, and the economy of the people who depend on this sector can recover.
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