Proceedings of The 2nd International Conference on Strategic Mental Revolution (ICoSMR),
Cikarang City, Indonesia January 20th, 2020. Theme: Corporate Social and Financial Responsibility
135
Analysis Marketing Strategy of Coffee Luwak Cikole:
A Case Study
Satim Hamid
1) Sekolah Tinggi Ilmu Ekonomi Pertiwi, Bekasi
shamco_prima@yahoo.co.id
Abstract
This research is the result of a survey in the coffee luwak Cikole Lembang Bandung
production house that produces luwak coffee from beans which are first eaten by
mongoose animals. the purpose of this research is to deeply understand the process of
implementing marketing and developing marketing strategies. The research method
used is qualitative with field survey techniques. the results of the research show about
the marketing process of Cikole Luwak coffee through several marketing processes
including through product variables, price, promotion and distribution. The marketing
process is carried out mostly through word of mouth and publications through social
media sites such as WhatsApp, Facebook and other social media. problem analysis
developed from observations using a SWOT analysis faced by CV. Kopi Luwak Cikole
as a local business actor in the coffee industry
Keywords : Luwak Coffee, Marketing strategy, SWOT Analysis, Fermentation process,
Social media
1. Introduction
Coffee is a well-known beverage throughout the world and the tradition of drinking
coffee continues to grow. This can be seen from the many countries that cultivate coffee
as a superior commodity. Indonesia is currently ranked fourth as the largest coffee
producing country in the world with a production level of 648,000 tons / year. its
position under Colombia, Vietnam and Brazil.
There are two types of coffee, namely Arabica and Robusta types. Besides
developing these two types of coffee, several Indonesian entrepreneurs such as CV.
Kopi Luwak Cikole develops other types of coffee, Luwak coffee. This coffee comes
from defecating mongoose animals. civet weasel is a mammal (Paradoxurus
hermaphrodites), this animal has various names, among others, weasel (common name,
Betawi), badger or mongoose (Java), and common palm civet, common weasel, house
weasel or toddy cat. This type of coffee is a typical original coffee from
Proceedings of The 2nd International Conference on Strategic Mental Revolution (ICoSMR),
Cikarang City, Indonesia January 20th, 2020. Theme: Corporate Social and Financial Responsibility
136
Indonesia and is produced in limited quantities. the scarcity and difficulty of collecting
Luwak coffee beans and their distinctive aroma have caused the price of Luwak coffee
to be very high. During this time Luwak coffee is consumed in the country and to meet
consumer demand abroad.
The high demand for coffee has increased the number of Luwak coffee business
operators. along with the increasing demand for luwak coffee, the need for raw
materials also increases. This has encouraged the development of the Luwak coffee
business by breeding and planting coffee trees. During this time there are two ways in
producing luwak coffee, namely by finding coffee beans that are eaten by mongoose
animals and excreted through defecation, then the defecations are collected or cleaned
to be processed into coffee. the second way is by raising mongoose animals, because
getting seeds from wild mongoose is very difficult. the amount of coffee produced by
fermentation depends on the number of mongoos that are kept.
However, luwak coffee has a special characteristic, namely the natural fermentation
process can distinguish flavors / aromas with other coffees. in addition, the fermentation
process is a selling point for Luwak coffee. In Indonesia, there are many who have
developed and cultivated luwak coffee, including in Aceh, Lampung, West Java and
Bali. luwak coffee cultivation is generally carried out in highland areas because it is
adapted to the animal’s habitat.
2. LITERATURE REVIEW
2.1. Marketing
Marketing is not “getting people to buy from you”,”eliciting a sale”or (as an eloquent
acquaintance once put it). Marketing is not just “selling”,”advertising” or “all the
promotional activities used to do business”. Marketing is not a synonym for
“Promotion”(Cowan, 2014:19); “Marketing” is the craft of utilizing the resources at
your disposalto best meet the needs of the end user as well as a desired outcome for the
owners of the organization(Cowan, 2014: 19); Marketing, a simplistic concept is
introduced, which is called “the 4P’s of Marketing” (Cowan, 2014: 23); Marketing
consists of actions undertaken to elicit desired responses from a target audience (Kotler,
2000:7); As a discipline, marketing is in the process of transition from an art which is
practiced to a profession with strong theoretical foundations (Baker,2003:3); Marketing
is both a managerial orientation-some would claim a business philosophyand a business
function (Baker,2003:4); Marketing therefore is all about mutually satisfying exchange
Proceedings of The 2nd International Conference on Strategic Mental Revolution (ICoSMR),
Cikarang City, Indonesia January 20th, 2020. Theme: Corporate Social and Financial Responsibility
137
relationships for which the catalyst is the producer’s attempt to define and satisfy the
consumer’s need better (Baker,2003:8); The marketing concept holds that the key to
achieving organizational goals consists of the company being more effective than its
competitors in creating, delivering, and communicating customer valueto its chosen
target markets. The marketing concept rests on four pillars: target market,customer
needs, integrated marketing, and profitability (Kotler, 2000:12); Marketers use
numerous toolsto elicit the desired responses from their target markets. These tools
constitute a marketing mix. Marketing mix is the set of marketing tools that the firm
uses to pursue its marketing objectives in the target market (Kotler, 2000:9)
Kotler dan Keller (2012:13) defined marketing is a social process by which
individuals and groups obtain what they need and want through creating, offering and
want freely exchanging product and services of value with others. While Stanton
(2004:7) states marketing is a total system of business activities designed to plan, price,
promote and distribute want satisfying product to target markets to achieve
organizational objectives”. Keagen (2002:425) defined marketing is the process of
focusing the recources and objectives of an organization an environmental
opportunities needs. Marketing has been defined in a somewhat basic way as whatever
comes between production and consumption, the distribution of products and services
to those who buy them (Foxall, 2003:120). In marketing, the competitive space is
generally characterized in terms of market segmentation (Wensley, 2003:66). More
recently, marketing has recognized much more explicitly this further range of issues,
including the key role of competition and the importance of a longer term socalled
relationship perspective, particularly in the context of customers (Wensley, 2003:56);
Marketing activity has become crucial for enterprises because successful marketing
enables companies to gain and retain customers, so they allocate significant resources
to this area (Kayabasi and Mtetwa, 2016: 533).
2.2 Marketing Strategy
Marketing strategies, the means by which the objectives will be achieved, are
generally concerned wit the ‘four Ps’ (Malcom, 2003: 94). Marketing strategy
sometimes claims to provide an answer to one of the most difficult questions in our
understanding of competitive markets. Marketing strategy, as with the field of strategy
itself, has had to address the continual dialectic between analysis and action,or in more
common managerials terms between strategy formulation and strategic implementation
Proceedings of The 2nd International Conference on Strategic Mental Revolution (ICoSMR),
Cikarang City, Indonesia January 20th, 2020. Theme: Corporate Social and Financial Responsibility
(Wensley, 2003:53); Marketers use numerous tools to elicit the desired responses from
their target markets. These tools constitute a marketing mix. Marketing mix is the set
of marketing tools that the firm uses to pursue its marketing objectives in the target
market (Kotler, 2000:9). Marketing-mix decisions must be made to influence the trade
channels as well as the final consumers. However, it can develop new products and
modify its distribution channels only in the long run (Kotler, 2000:9)
According to Assauri (2017: 168) marketing strategy is a comprehensive,
integrated, and unified plan that provides guidance on the activities that will be carried
out in order to achieve the marketing objectives of a company. In other words a
marketing strategy is a set of goals and objectives, policies and rules that give direction
to the company’s marketing efforts from time to time, at each level and reference and
allocation, especially in response to the company in the face of the environment and
conditions of competition that is always change. Kotler and Keller (2009: 204).
explained that the marketing strategy is a decision making about marketing costs,
marketing mix, marketing allocation with the expected environmental conditions and
the conditions of competition faced. Cravens (2000) states that marketing strategies
