International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue I, January 2022 | ISSN 2454–6186

Marketing Mix Strategy for A Coffee Brand: Evidence from Mojokerto City, Indonesia.

Sheila Kartikasari, Sri Tjondro Winarno, Dan Eko Nurhadi
Agribusiness Department, Faculty of Agriculture, Universitas Pembangunan Nasional “Veteran” Jawa Timur, Indonesia

ABSTRACT
This paper attempts to show the marketing mix strategy of coffee at Cafe Budaya Kopi and Loodst Coffe, Mojokerto City. The data used in this study used a questionnaire. The sampling method used convenience sampling. The number of samples collected was 100 samples. The data analysis technique used by the researcher was descriptive statistics and inferential statistics. To analyze the data, we use Partial Least Square (PLS). SEM-PLS analysis using the outer model and inner model. The results of the study prove that Loodst Coffee and Cafe Budaya Kopi in marketing their products apply the 7P marketing mix strategy to compete in the market with other similar products. The variables of the marketing mix of product, price, place, promotion, process, people, and physical evidence get respondents’ ratings in the good category. The 7P marketing mix variables partially product, price, place, promotion, process, people and physical evidence have a significant positive effect on customer satisfaction at Loodst Coffee and Coffee Culture.

Keywords: Coffee, Coffee Shop, Customer Satisfaction, Marketing Mix

INTRODUCTION
Coffee is one of the plantation commodities that play an important role in the Indonesian economy. The important contribution of the coffee commodity to the national economy is reflected in trade performance and the increase in added value. As an export product, coffee commodities can contribute in the form of foreign exchange-earners and state income, sources of income for farmers, job creation, driving growth in the agribusiness and agro-industry sectors, regional development, and environmental conservation. In addition to increasingly open export opportunities, the domestic coffee market is still quite large. The more coffee production centers in Indonesia, the greater the business competition in the coffee industry. The strata of the domestic coffee industry are now emerging and very diverse, starting from home industry-scale business units to multinational-scale coffee industries. Domestic coffee consumption is an attractive market for entrepreneurs because it still provides prospects and opportunities as well as shows conducive conditions for investing in the coffee industry. The products produced are not only to meet the needs of domestic coffee consumption but also to fill foreign markets (AEKI, 2020). The existence of increasingly fierce business competition forces business people to continue to improve product quality and be oriented to consumer and customer satisfaction.
Coffee beans can be judged quality or not starting from green beans or before the coffee beans are roasted. The more detailed attention to the quality of the coffee beans makes coffee connoisseurs also want to know more about the intricacies of coffee from being planted to the cup. The curiosity of coffee connoisseurs has made some shops take advantage of this momentum by creating a sitting area at the bar, where coffee drinkers can interact with the barista directly.
Kopi Budaya Café is a coffee shop in Mojokerto City that from the beginning wanted to educate coffee drinkers, especially second-wave connoisseurs, that coffee is not always bitter but also has a unique and complex taste. The cafe is a cafe that is quite famous in Mojokerto City and is always visited by visitors every day. Kopi Budaya Café not only sells coffee drinks but also sells local and international coffee beans of very good quality which is one of the advantages of this shop. Likewise with Loodst Coffee, one of the coffee shops in Mojokerto City that has been a pioneer since 2012 which is always visited by visitors every day because the place is quite modern for the millennial generation. Not only selling espresso but also selling packaged coffee as is the case with the Kopi Budaya Café. Based on interviews conducted by researchers with one of the employees, information was obtained that although the marketing coverage of Loodst Coffee and Kopi Budaya Café was able to reach the main market in Mojokerto City because of its strategic location, the position of the coffee brand product was only known among customers and was not very strong in the eyes of the public. consumers, meaning that there are still many consumers who are not familiar with coffee products and variants in the two coffee shops. In addition, based on initial observations regarding prices, coffee products in these two places are quite expensive when compared to other shops in Mojokerto. The two coffee shops also only rely on promotions through social media such as Instagram. This information can be used as material to evaluate and improve marketing strategies at the two coffee shops so that it is possible to attract new consumers who have the potential to become customers. For this reason, it is necessary to evaluate the coffee marketing strategy through the marketing mix attribute approach.