Proposed Marketing Strategy to Increase Digital Smart Poultry Market Readiness in West Java

: Coronavirus diseases (COVID-19) have been impacted to the decrease in poultry product demand in Indonesia which leads to cause oversupply and declining in this industry margin. As one of the companies that promote digital transformation in Indonesia, Indonesian ICT company develops a new subsector in its digital agricultural platform to solve the problem. This company created Minimum Viable Product (MVP) to develop its current digital platform in subsector poultry (digital smart poultry). It consisted of several features such as funding, partnership, and B2B/B2C marketplace. After planning the MVP, the problem is mainly focused on determining the market readiness for smart poultry digital platform and how to create the most suitable marketing strategy to enter the market. They also had not specified the target segment to sell the products yet. This research is aimed to explore more whether the poultry farmers need the smart poultry digital platform to solve the problem, the market readiness, and formulate the marketing strategy and implementation plan for the smart poultry digital platform that targeted on poultry farmers. To validate the issue in the poultry industry, the authors conduct a preliminary survey by interviewing poultry farmers in West Java. Next, to gain in-depth insight into the product necessities and market readiness, the author did an environmental analysis (internal and external) as the base to formulate the SWOT-TOWS analysis. The internal analysis that has been used for this research consists of Business Model Canvas (BMC) and VRIO analysis. The author used PESTEL, Porter's Five Forces, competitor, and consumer's analysis for the external analysis. According to the analysis, the poultry farmers as the targeted consumers are considered ready and necessary to use the product. After formulating SWOT-TOWS based on the environment analysis, the author used QSPM analysis to determine the most suitable business and marketing strategy to be implemented. The author proposed several strategies and implementation plans that consisted of 1) Increase the smart poultry digital platform capabilities (especially in IoT to help solve the poultry farmers' problem). Optimize digitalization for business development and marketing (SO2), 2) Optimize the service marketing (ST1), and 3) Maximize the use of integrated marketing strategy to maximize promotion (WT3).


INTRODUCTION
The poultry industry contributes significantly to alleviating protein malnutrition, poverty, and fostering Indonesian economic growth. This industry provides humans with a source of proteins that are already contained in eggs and chicken form. As a developed country, Indonesian people prefer consumed poultry products such as eggs and chicken to fulfill their protein needs since it is cheaper than meat. Hence, the Indonesian poultry market has a great prospect in the future and has become very strategic because chicken and chicken eggs have been included in the Food Law (UU) as strategic food, according to the Secretary General of the GPMT (Indonesian Feed Producers Association). The Indonesian meat market is dominated 67% by poultry meat and will continuously grow in the future. Align with the statement, currently, there is 397 poultry company that has been established with 20.414 workers in 2020, according to BPS Poultry Establishment Statistics (2020) data.
The coronavirus pandemic (COVID-19) has affected the poultry industry. It is mainly caused by the government policy to establish large scalable social restrictions (PSBB) to minimize the spread of COVID-19. This policy has a huge impact on the two main economic pillars, which are consumption and production (Ilham and Haryanto, 2020). The decrease in poultry product demand led to oversupply and impacted the decline in margin. In the midst of the COVID-19 outbreak, digital technology can be one of the most feasible solutions. It plays an important role in connecting, boosting productivity across sectors, and expanding participation to all segments of poultry industry stakeholders. Indonesian ICT company develops a new subsector in its digital agricultural platform to solve the problem. This company created Minimum Viable Product (MVP) to develop its current digital platform in subsector poultry. It consisted of several features such as funding, partnership, and B2B/B2C marketplace. After planning the MVP, the problem that has occurred is mainly focused on determining the market readiness for smart poultry digital platform and how to create the most suitable marketing strategy to enter the market. They also had not specified the target segment to sell the products yet. Next, the author conducted a preliminary survey to validate the issue that happened in the poultry industry. After interviewing 4 poultry farmers in West Java, it is valid that the common problem that happened in the poultry industry is consisted of: the chicken mortality rate is still high, the level of profit has been decreased because of the increase in feed price, the existence of middlemen who take too many profits, and the declines of poultry demand and prices during the pandemic.

BUSINESS ISSUE EXPLORATION A. Research Framework
The purpose of the research framework is to briefly explain the process of generating the action plan of the research according to the theory. It consisted of finding business issues, a preliminary survey to find the actual problem, research objectives, external and internal analysis, SWOT (Strength -Weakness -Opportunities -Threats) analysis, TOWS, proposed strategy, and implementation plan.

B. Research Method
The research method that has been used to formulate the most suitable solution for the company is qualitative research. According to Creswell (2012), qualitative research entails delving into and comprehending the meaning that individuals or groups attach to a human social issue. This research was conducted by the author during the internship period in one of ICT company in Indonesia. During the internship, the author gathered information about the business process of smart poultry digital platform, the internal condition of the company, and poultry industry conditions (external). Since the population of a poultry company in Indonesia is 397 (BPS, 2020), therefore 4 poultry farmers from the poultry company (which is 1% of the population) are considered to have qualified  as representative of the population. Further, the author also gathered the data from the interview and site visit to a poultry farm in West Java to gain deeper findings.

C. Data Collection Method
In collecting data, according to Doughlas (2015), the method can be categorized into two categories which are primary and secondary data. For this research, the author gathered primary data by conducting an interview using Bahasa (Indonesian languages) with poultry farmers, site-visit, and observing the conditions of the poultry farm in West Java. The secondary data for this research is collected through the website, books, articles, and Indonesian ICT company employees.

D. External Analysis 1. PESTEL analysis
According to Cadle et al. (2014), PESTEL analysis is a strategic framework that can be used for analyzing and investigating the external circumstances that affect organizations.

Porter's Five Forces
Porter's five forces analysis is a method to identify the company's competitive environment to enhance the effectiveness of marketing strategy for the industry (Cadle et al., 2014). In terms of supply, poultry farmers and offtaker are the smart poultry digital platform main suppliers. To be able to partner with poultry offtaker, poultry product needs to fit with the standard, which is to have high quality and price that fit the market price (not lower or higher price).
Although there are many substitute products that will be impacted the customer's bargaining power, poultry products will always be needed, however, the consumers tend to not be dependent on smart poultry digital platform.
Smart poultry digital platform will face existing direct and indirect competitors related to poultry suppliers, funding, and market.  Still in the MVP process, so it hasn't started to be marketed yet, but the plan will be operated online in Indonesia.
Online. This platform has been used in 29 districts in Indonesia.

Online.
Online.

Price
Based on the agreement. Based on the agreement. Based on the agreement Based on the agreement

Promotion
Still in the MVP process, so it hasn't started to be promoted yet.
Through social media such as Instagram, LinkedIn, and mailing lists.
Through social media such as Instagram, Facebook, Twitter, Google+, and mailing list.
Through social media such as Instagram, Facebook, Twitter, LinkedIn, and mailing list.

4.
Consumer Analysis Customer analysis is purposed to determine the target customers, pain, gain, and product that can fulfill the customer needs.
To gain deep consideration about customers, the author has already conducted the interview using the preliminary survey's respondents. The respondents of this interview are 4 West Java poultry farmers who are assumed to represent the sample of the population. The demography of respondents is as follows: 1. Gender: 75% male and 25% female 2. Age: 25 -55 years old 3. Education: 50% from bachelor's degree, 25% from junior high school, 25% from senior high school 4. Technology Usage: 75% used technology, and 25% did not use the technology. The problem that occurred in the poultry industry were: 1) lack of capital funding/investors for the poultry industry, 2) lack of well-targeted marketing strategy to sell poultry products which led to chicken stockpile, 3) inadequate livestock production facilities, 4) lack of knowledge of managing poultry, 5) low-quality control of poultry product, and 6) fluctuating price (for example chicken food or vaccines/booster) which can cause the Cost of the Good Sold (COGS) higher than the sales price and reduce the margins.
In addition, the author also surveyed the respondent's expectations towards poultry monitoring equipment/IoT if they agreed to have a partnership with the offtaker company through a partnership program. Using the Likert scale from 1 (very unimportant) to 5 (very important) as presented in Figure 2.
As seen in Figure 2, it can be summarized that the three most important monitoring tools to be developed according to the scale average are: measuring NH3 (ammonia) level (4,75), and measuring and regulating temperature through heater and blower (4,25).
Further, the authors also surveyed the respondent's perception of smart poultry digital platform. There are 3 criteria that the respondent should be answered using the Likert scale from 1 (very unimportant) to 5 (very important). Overall, the result shows that the easiness of SOP for the partnership is important (4,25), convenience capital funding application is important (4,25), and a digital monitoring application that is easy to understand is important (4).
In terms of price value, all of the respondents have no idea the price range that they can pay when they start using it. They preferred to try it first before paying for the application to find out how important and helpful the application is for their business. However, 75% of the respondents think that the transactional method is more profitable because it can reduce the risk in the event of crop failure, while 25% of them prefer the subscription method because it can allocate funds for the needs of using the application from the start (fixed cost). In the survey, the author also gives a condition to get to know their interest if the application required the respondents to get a partnership with an offtaker company and use sharing profit system per transaction with a percentage below 1% from total harvest. Then, 50% of the respondents are interested in this deal as long as it is beneficial for both parties. Meanwhile, 50% of them can not decide yet because they should consider it with their company management.
Last, the author also surveyed the usage decision after informing the features of this application. As a result, 75% of them are interested in trying because this application can help companies to grow (R1 & R3) and provide business funding facilities. Meanwhile, 25% of the respondents, R3 (large-scale poultry farmers), said that they are not interested in trying the apps because their demand is already high, so they don't need the application. Based on the findings, for the initial marketing plan, the most suitable targeted market for this smart poultry digital platform app is small to medium-scale poultry farmers.  After identifying the external and internal factors that the company already had, it can be seen that the total attractive score for Smart poultry digital platform's internal factor is 3.45. Meanwhile, for its external factor, Smart poultry digital platform's total attractive score is 3.45. Overall, the internal and external factor of Smart poultry digital platform is probably acceptable. Based on IFE and EFE data, the Quantitative Strategic Planning Matrix (QSPM) weighted can be generated. To determine the best strategy alternatives among 11 strategies, an attractiveness score will be calculated. The attractiveness score for each strategy is specified directly by the expert judges from the internal ICT company team through discussion. In the same step as before, the judges will define every strategy based on terms 1 = not acceptable, 2 = possibly acceptable, 3 = probably acceptable, and 4 = most acceptable. The attractive score that the judges give is objectively identified based on the relatedness, resources, capabilities, and needs of each strategy. The result of the Smart poultry digital platform Quantitative Strategic Planning Matrix (QSPM) can be seen in Table 8 below. As seen in Table 8 above, it can be summarized that the most suitable strategy based on QSPM result is smart digital poultry platform should increase its capability to implement smart poultry farming using IoT and optimize digitalization for business development and marketing (SO2) with a total attractiveness score 3.55, optimize their services to gain customer satisfaction (ST1) with total attractiveness score 3.30, and maximize the used of integrated marketing strategy to maximize this platform promotion (WT3) with total attractiveness score 3.20.
B. Proposed Strategy 1. Increase the smart poultry digital platform capability by implementing smart poultry farming using IoT and optimize digitalization for business development and marketing (SO2) The internal capabilities that smart poultry digital platform should consider are: develop IoT, create enterprise data strategy and data practice about the poultry industry, recruit specialized talent to handle the IoT for monitor poultry, develop cyber security to protect data privacy, and deploy IoT program based on the consumer's needs. According to the consumer analysis interviews, the IoT equipment most needed by farmers is NH3 (ammonia) level measurement. In terms of business development, it can be optimized by digitalization to explore the untapped business potential that can grow new income streams. For marketing, since 75% of poultry farmers are technology savvy (based on consumer analysis interview), a promotion online can be the most effective and efficient strategy.

Optimize their services to gain customer satisfaction (ST1)
Service marketing is a marketing approach that is used by a company to serve its customers so that sales and awareness will increase. The objectives of service marketing are to provide valuable services (intangible) and to build a good relationship with the customer.

Maximize the use of integrated marketing strategy to maximize the promotion (WT3)
As a newcomer in the digital poultry industry, this app is still in progress to raise brand awareness for its targeted consumer. In increasing awareness, various promotional media or advertisements are needed so that potential consumers can easily remember and get used to using the apps. One of the ways that can be implemented to raise product awareness is to construct an integrated marketing strategy. By using this strategy, all the promotions will be integrated and unified.

CONCLUSION AND IMPLEMENTATION PLAN
A. Conclusion 1. Coronavirus diseases (COVID-19) have been affected to the decrease in poultry product demand which leads to oversupply and declining in the margin. As one of the companies that promote digital transformation in Indonesia, Indonesian ICT company develop a new subsector in its current digital agricultural platform to solve this problem. This company created Minimum Viable Product (MVP) for smart poultry digital platform apps. The features that have been offered consist of financial funding, partnership opportunity with an offtaker company, and selling poultry products to another business (B2B) or direct customers (B2C). The current problem that occurred in this project mainly focused on determining market readiness for smart poultry digital platform and creating the most suitable marketing strategy for targeted consumers to enter the market. 2. The author also validates the poultry issue that has occurred and how necessary the smart poultry digital platform be implemented in order to solve the poultry farmers' problem. Based on a preliminary survey that has been conducted by interviewing poultry farmers in West Java, it is valid that the common problem that happened in the poultry industry are: the high chicken mortality rate, the increase in feed prices causing the decline in profit margin, the existence of middleman who harms poultry farmers in reducing the selling profit, and the declining of poultry product demand and price. 3. Continuing from the preliminary survey, the author did a customer analysis to gain deeper insight related to the smart poultry digital platform necessities. In summary, the respondent's perception of smart poultry digital platform matched the features that this platform offered and considered important to them. Moreover, 75% of the targeted consumers are technology savvy and interested in trying the application because they think it can help companies to grow and provide business funding facilities. Therefore, this digital platform can be considered necessary and ready to be implemented in the poultry industry market. 4. After knowing the business problems that occur in the company, the author conducted an environmental analysis to formulate various alternative strategies based on internal and external analysis. The internal analysis uses the business model canvas (BMC) and VRIO analysis to determine the company's internal capabilities (strengths and weaknesses). As for external analysis, PESTEL analysis, Porter's Five Forces analysis, consumer analysis (based on interviews with 4 poultry farmers as targeted consumers) are used, and competitor analysis to identify opportunities and threats from an external perspective. Therefore, the SWOT-TOWS matrix can be formulated to generate an alternative business strategy for this app. By using QSPM analysis, the most suitable business and marketing strategy that can be implemented for the targeted poultry farmers are 1) Increase the smart poultry digital platform capabilities (especially in IoT to help solve the poultry farmers' problem). Optimize digitalization for business development and marketing (SO2), 2) Optimize the service marketing (ST1), and 3) Maximize the use of integrated marketing strategy to maximize promotion (WT3).

B. Implementation Plan
The proposed strategy to be implemented in smart poultry digital platform can be categorized into 4 main objectives based on the goals of each focused area. The implementation plan consisted of 1) increasing the company capabilities by implementing IoT (development from strategy no 1 -SO2), 2) optimizing business development digitalization (development form strategy no 1 -SO2), 3) optimizing integrated marketing strategy (development form strategy no 1 -SO2 and no 3 -WT3), and 4) optimize the service marketing strategy (development from no 2 -ST1).  Table 9. Digital Smart Poultry Proposed Implementation Plan (Continue)

C. Recommendations
The author's additional recommendation for the company's future is to apply an omnichannel marketing strategy as the next step of marketing strategy implementation. Although it is more expensive than the previous strategy, using an omnichannel strategy can boost customer retention, satisfaction, and efficiency and can also seamlessly connect all the integrated marketing channels in one customer's journey.
Further, to fully optimize this topic, the author's suggestions to the next researcher consist of: 1. This research discusses market readiness from a market perspective or targeted market for poultry farmers. Therefore, to develop more comprehensive research, it is recommended for further researchers to examine the readiness of targeted consumers in terms of their adaptation technology. Therefore, further market readiness research is recommended to use a method based on the theory of acceptance and use of technology (UTAUT) model. 2. According to the BMC, the smart poultry digital platform's customer segment consists of 3 types, namely poultry farmers (B2C/B2B), poultry offtaker (B2B), and direct poultry customers (B2C). This research aims to determine the readiness of smart poultry digital platform with a target market of poultry farmers to participate in the app ecosystem. Therefore, the author recommends further research to explore further regarding the marketing strategy used for other target markets in the entire smart poultry digital platform.