Proposed Marketing Strategy for Dairy-Free Coffee Shop in Jakarta (Case Study: Mad For Coffee)

: The coffee industry in Jakarta is a thriving and dynamic market, with a large number of coffee shops, cafes, and restaurants serving various types of coffee and snacks. After the COVID-19 pandemic, the plant-based lifestyle is becoming increasingly popular in Jakarta. More and more people in Jakarta are choosing to adopt a plant-based lifestyle, either for ethical, health, or environmental reasons. Along with that, the market opportunity for dairy-free coffee shops in Jakarta is significant and growing. Many consumers in Jakarta are looking for healthier, more sustainable, and ethical food options, and dairy-free coffee shops cater to these needs. Mad for Coffee is one of the players in the coffee shop business, with their unique selling proposition as a dairy-free coffee shop. It is owned by one of the famous influencers in Indonesia, who is a vegetarian and also has a vegan community. With a huge number of competitors, Mad for Coffee needs to increase their market awareness and sales to make the business sustain for a long period of time. Based on the external analysis, the author found the coffee industry has intense competition. Competitors not only come from other dairy-free coffee shops, but also from regular coffee shops because they also provide a variety of dairy-free milk options. Moreover, from the internal factor, Mad for Coffee are not utilizing the power of their famous owner and their friends to help promote or to build partnerships or to collaborate with their coffee shop. From internal and external analysis in Mad for Coffee, then the author obtained SWOT analysis. From SWOT analysis, the author found that Mad for Coffee lacks marketing programs such as special discounts or loyalty programs to retain customers. Also, their social media contents are not really exposing their products and their strong branding as a dairy-free coffee shop. From matrix TOWS analysis, the author proposed several alternative marketing strategies that can be implemented by Mad for Coffee. Those alternatives are improving promotion by representing several strong points on Mad for Coffee and ads placement in social media, collaborating with influencers, community and media, developing loyalty programs and product promotion, and improving facilities and human resources in Mad for Coffee.


TOWS Matrix
After analyzing internal condition Strength and Weakness) and external conditions (Opportunities and Threat) of Mad for Coffee, alternative solutions need to be made. Alternative solutions in this research are using TOWS analysis. TOWS analysis identifies four strategic groups : Strength and Opportunities (SO) Strategies, Strength and Threat (ST) Strategies, Weakness and Opportunities (WO) Strategies, and Weakness and Threat (WT) strategies. SO strategies are using internal strength of the firms to take advantage of external opportunities. ST strategies are using internal strength of the firms to minimize external threats. WO strategies are using the advantage of external opportunities to mitigate internal weakness. WT strategies are used to minimize internal weakness and external threat.

METHODOLOGY
This research will use primary and secondary data. Primary data is the original data based on observation of a certain condition from a sample. The primary data will be collected by both quantitative and qualitative research. Quantitative research is a process of data collection that uses instruments such as questionnaires, surveys where the result of the analysis will be based on the sample in which representative from the population [5]. This research will distribute questionnaires as the instrument for the data collections which are distributed using google forms to 150 respondents. The targeted respondents are coffee drinkers who regularly come to coffee shops to buy coffee. Meanwhile, qualitative research method is research using methods such as participant observation, as well as with case studies observation in understanding the meaning of what people have constructed and how people make sense of particular things along with the experience they have in the world [7]. In the practice, qualitative research consisted of a series representations including field notes, interviews, conversations, photographs, recording and memo in the process. This shows how qualitative research studies in the natural setting to attempt to make the sense of, or to interpret phenomena in terms of the meaning people bring [8]. In the qualitative research method implementation, this research is conducted in an in-depth interview with the founder of Mad for Coffee who is responsible for achieving the sales target of the coffee shop as well as to make the marketing strategies for Mad for Coffee.

Conceptual Framework & Research Design
The success of any business is heavily reliant on its ability to adapt and compete in a rapidly changing market. Especially for a dairy-free coffee shop like Mad for Coffee that must navigate the challenges of attracting and retaining customers in an industry dominated by traditional coffee shops. To increase their awareness and sales and to effectively compete with their competitors, the author will outline a conceptual framework that will help Mad for Coffee to identify and address key areas of concern, including marketing, product development, customer service, and brand identity. In addition, the framework above was adapted from previous research on customer preferences in coffee shops consumption by Adrian Gautama Himawan and Raden Aswin Rahadi. The study aimed to find out about the preferences of consumers in buying coffee that were obtained from preliminary interviews conducted and literature reviewed. There were in total 23 literature studies conducted by researchers around the world about preferences for a coffee shop around the world. After a few studies have been examined, there were six factors affecting customer decision in purchasing coffee, which will cause the customer to purchase the coffee in individual coffee shops. The key factors are taste, product design, ambiance, brand influence, location accessibility, and price. Meanwhile, research design refers to the overall plan or strategy that a researcher uses to answer their research question(s) or to test their hypothesis(es). It involves a framework that outlines the approach, methods, techniques, and tools that will be employed to gather and analyze data. Research design is a critical component of any research project as it determines the validity and reliability of the findings. Research design is "a blueprint for conducting a study with maximum control over factors that could interfere with the validity of the findings [8]. Other sources define research design as "the logical sequence that connects the empirical data to a study's initial research questions and, ultimately, to its conclusions [9]. Thus, it is essential for researchers to choose the most appropriate research design to ensure that their findings are accurate, reliable, and valid. Current and existing business issues are needed in the research design. In this final project, the first data collection method is obtained by interviewing the co-founder of Mad for Coffee. Another method is collecting data from literature such as journals, articles, books, etc. Next step in the conceptual framework is environmental analysis which includes internal and external analysis. In internal analysis, this final project will be conducted using STP analysis (Segmentation, Targeting, And Positioning), marketing mix 4P (Product, Place, Pricing, And Promotion), porter value chain, and analyzing primary data from the interview. The internal analysis result will be used to provide choices of its target market selection and the positioning of product in ther market. In external analysis, this final project will use PESTEL analysis (Political, Economical, Social, Technological, Legal And Environmental) to recognize and understand the opportunities and threats that are faced by the company. Porter's 5 forces will be used to examine the industry-level competitive environment, and analyze primary data from questionnaire distribution. Competitor analysis is the next step of external analysis. The result of both external and internal analysis will be used to evaluate in SWOT Analysis (Strength, Weakness, Opportunity and Threat). Strategy formulation for business solutions will be conducted using the TOWS matrix that is related to all factors in SWOT analysis. The purpose of strategy formulation is to find business solutions that can be generated and implemented in marketing strategy and to propose recommendations to Mad for Coffee.

FINDING AND ARGUMENTS
Porter Value Chain 1. Primary Activities: Inbound Logistics Since Mad for Coffee is a dairy-free coffee shop, they need several suppliers such as coffee beans, non-dairy milk, baked goods, syrup and flavoring suppliers, packaging, equipment and maintenance, sanitizing. For coffee beans, since they only use one type of bean, arabica, they have regular suppliers with affordable prices. For the non-dairy milk, they order it directly from the brand, especially because they use local brands for the milk. For the baked goods, syrup and flavoring, they also order directly from the supplier. For the packaging, they custom it to the supplier and order periodically before they run out of packaging. For the equipment and sanitizing, they could just order it anytime because many online stores sell it. For the storing, they have large space in their Cipete store to keep their logistics.
2. Primary Activities: Operations All work processes in Mad for Coffee take place in their store at Cipete, and they also have an office on the 2nd floor. Their store is open from 7am to 10pm everyday. But for their online marketplace especially in Tokopedia, they open from 8am to 8pm.

Primary Activities: Marketing & Sales
Mad for Coffee utilizes online food delivery (Gofood and Grabfood) and e-commerce platforms (Tokopedia) to sell its products, while relying on Instagram and TikTok for product promotion. Through Instagram and TikTok, Mad for Coffee creates awareness and generates interest in the dairy-free coffee shop's offerings. Mad for Coffee crafted visually appealing content and several contents engaging with followers to effectively promote its unique dairy-free coffee options to a broad audience. Mad for Coffee also leverages online food delivery and e-commerce platforms as convenient channels for customers to browse and buy their dairyfree coffee products.

Primary Activities: Service
The dairy coffee shop's commitment to excellent service is reflected in their attentive and friendly staff, prompt response times, and efficient order processing.
1. Support Activities: Firm Infrastructure Infrastructure that supports the primary activities in Mad for Coffee is that they have their own store connected with their office on the 2nd floor. Mad for Coffee also has a storage room for their inventory and supplies. For customers, they have 2 options: indoor seating area and outdoor seating area. Although, the indoor seating area only provides for a maximum 4 to 6 people. Meanwhile, the outdoor seating area could fit probably 20 to 30 people. Overall for their store design and ambience is aligned with their branding which is dominated with terracotta color and minimalist industrial design. To conclude, currently Mad for Coffee has a building that could support all their operation activities.
2. Support Activities: Human Resource Management Currently, Mad for Coffee is not hiring employees because all positions have been filled. For the CEO, CFO, COO, and Store Manager position, all were recruited by a close recruit system. By looking at their organizational structure, Mad for Coffee still lacks head marketing.
3. Support Activities: Technology Technology used by Mad for Coffee is their espresso machine and the POS system. 4. Support Activities: Procurement For their resources, they got their ingredients from the first-hand supplier especially for their dairy-free milks because they are mostly local products.

VRIO Analysis
Based on the VRIO analysis, the brand image and reputation of Mad for Coffee give it a competitive advantage by differentiating it from competitors and attracting customers who trust and recognize the brand. It creates a perception of quality, reliability, and credibility, making customers more likely to choose the business over competitors. As well as the unique menu offerings by Mad for Coffee, it sets the business apart from competitors and provides a competitive advantage by appealing to customers seeking novel and distinctive coffee experiences. The well-designed store ambience and a favorable location of Mad for Coffee give the business a competitive advantage by creating a pleasant atmosphere that attracts customers and differentiates it from competitors with less appealing environments. But all of those things are pretty much any coffee shop could do the same. The absence of customer loyalty represents a competitive disadvantage for the business of Mad for Coffee, as it lacks a loyal customer base that can contribute to recurring sales and word-of-mouth recommendations. Also not having access to or utilizing specialty ingredients puts the business at a competitive disadvantage, as competitors who offer unique flavors and experiences through these ingredients may attract customers looking for something special. The lack of skilled baristas is also a competitive disadvantage, as well-trained staff can enhance the quality of the coffee and customer experience, potentially leading to higher customer satisfaction and repeat business. The absence of exclusive recipes and formulas is also a competitive disadvantage, as competitors with unique and proprietary recipes can differentiate themselves and offer distinct menu items that appeal to customers seeking something exclusive. One of their strengths is actually the ability to network and form partnerships which will provide the business with a competitive advantage, as it allows for expanding the customer base and accessing new opportunities that may not be available to competitors without such connections. But it is an unused competitive disadvantage since Mad for Coffee hasn't really implemented it in their marketing strategy.

Porter's 5 Forces 1. Threat of New Entrants
The threat of new entrants of Mad for Coffee is medium. Jakarta's dynamic and growing coffee culture may attract entrepreneurs looking to tap into the dairy-free market segment. As such, the threat of new entrants is a significant consideration for existing dairyfree coffee shops. Factors that can facilitate the entry of new competitors include relatively low barriers to entry, such as easy access to coffee beans, non-dairy milk alternatives, and coffee-making equipment. Additionally, the increasing popularity of dairy-free and plant-based lifestyles may encourage entrepreneurs to establish new dairy-free coffee shops.

Bargaining Power of Suppliers
The bargaining power of suppliers of Mad for Coffee is low. For a coffee shop, Mad for Coffee needs coffee beans suppliers, nondairy milk suppliers, baked goods suppliers, syrup and flavoring suppliers, packaging suppliers, equipment and maintenance suppliers, sanitizing suppliers, POS system suppliers, and wholesale suppliers. It might sound like many, but those are considered easy to find and many options if anything happens with a regular supplier. Or when there are changes in the price made by the supplier, Mad for Coffee can switch to the other suppliers.

Power of Buyers
The bargaining power of buyers of Mad for Coffee is high. In Jakarta's competitive market, buyers of dairy-free coffee have a certain level of bargaining power. With numerous dairy-free coffee shops available, customers have the option to choose among various establishments based on their preferences and budget. Price sensitivity is a significant factor that can affect the power of buyers. In a market where customers have access to multiple alternatives, they may be more inclined to compare prices and negotiate for better deals. Additionally, the increasing awareness and demand for dairy-free options give buyers more leverage in their interactions with coffee shops.

Threat of Substitute
The threat of substitute of Mad for coffee is high. In Jakarta, various substitutes can pose a challenge to the dairy-free coffee shop industry. One substitute is the presence of traditional coffee shops that predominantly offer dairy-based options. While some customers may actively seek dairy-free alternatives, others might be satisfied with the more conventional offerings available in these establishments. Additionally, the growing popularity of home-brewing and the availability of ready-to-drink dairy-free coffee beverages in grocery stores can also act as substitutes. These alternatives provide convenience and potentially lower costs, potentially attracting customers away from dairy-free coffee shops.

Rivalry Among Existing Competitors
The rivalry among existing competitors of Mad for coffee is low. With a limited number of direct competitors, the focus may shift towards differentiating offerings and capturing a larger market share. However, it is important for Mad for Coffee and the other dairy-free coffee shops to continuously innovate and improve their products, services, and customers.

Customer Analysis 1. The Conclusion of Respondents Profile
The demographic of this research questionnaire respondent's shows that females are slightly more than males. The majority age is between 18 -30 years old, mostly living in Jakarta Selatan, occupation mostly as a private employee, monthly expense majority between Rp 1.000.000 -Rp 5.000.000. For dietary status, most of the respondents are currently not avoiding dairy products or being a vegan or vegetarian. Their lactose intolerance status is mostly not having a lactose intolerance. Respondents have a variety of favorite coffee drinks, but most of them like latte. For their social media usage in one day, the majority of respondents are highly active on social media and regularly engage with several platforms with 6 -10 times in a day at least open the social media platforms. Their most frequently used social media are instagram, and that platform is also their most interesting social media platform to receive ads.

Coffee shop consumer behavior
To conclude, the questionnaire result indicates that the majority of respondents consider it crucial for coffee shops to offer noncoffee alternatives on their menu.. This finding emphasizes the importance for coffee shops to provide a range of options, such as tea, hot chocolate, smoothies, or dairy-free alternatives, to accommodate the preferences and needs of a broader audience. Also, the questionnaire result suggests that a majority of respondents frequently choose alternative milk options when ordering coffee. The strong agreement highlights the growing demand for dairy-free or plant-based milk alternatives such as almond milk, soy milk, oat milk, or coconut milk. This finding emphasizes the importance for coffee shops to offer a variety of milk options to cater to the preferences and dietary needs of customers seeking alternative milk choices, aligning with the increasing trend of plant-based lifestyles and dietary preferences.

Proposed STP SEGMENTING
(1) Demographic: targeting young professionals, students, and families who frequently go to coffee shops. Focusing on middle to upper-income individuals who have the financial capacity to afford specialty coffee and dairy-free options. Targeting office workers, entrepreneurs, creative professionals, and students who are likely to visit coffee shops during their work or study hours (2) Behavior: Targeting individuals who prioritize a healthy lifestyle and seek dairy-free options for dietary or health reasons and targeting individuals who are looking for a quick coffee fix or a place to work / study, providing a comfortable and productive environment.
(3) Psychographic: Targeting customers who value sustainability, eco-friendly practices, and ethical sourcing of ingredients. Focusing on customers who are interested in a healthy lifestyle and environmentally conscious. Attracting customers who are passionate about supporting local businesses and community engagement.

TARGETING
(1) Young professionals and working individuals who value convenience and seek a quick and nutritious dairy-free coffee option during their busy schedules. (2) Health-conscious families who prioritize providing wholesome and dairy-free options for their children and themselves. (3) Students and university attendees who are looking for a cozy environment to study, socialize, and enjoy dairy-free beverages and snacks. POSITIONING A haven for coffee enthusiasts who value a healthy lifestyle, with a variety of dairy-free beverages, food, as well as alternative milk options, and offer a cozy place to hangout or to work.

Figure 5. Examples of Brand Collaboration in Participating in Event
In conclusion, participating in healthy lifestyle initiatives, eco-living movements, and coffee events enhances Mad for Coffee's visibility, credibility, and customer loyalty. By aligning with the values and interests of their target audience, Mad for Coffee can effectively communicate its unique selling propositions, attract new customers, and cultivate a strong brand image associated with healthy living, sustainability, and exceptional coffee experiences.

Partnership With Local Suppliers
Establishing partnerships with various local suppliers could be tried by Mad for Coffee to enhance its business operations and sustainability practices. For example, partnering with local dairy-free milk brands allows Mad for Coffee to cater to customers with specific dietary preferences or lactose intolerances. Collaborating with local dairy-free milk brands such as Oatside, also supports the local economy, fosters a sense of community, and allows them to promote the ethical and environmental benefits of plant-based milk alternatives. Or else, partnering with local suppliers of reusable cups and straws ensures a consistent supply of eco-friendly products, while also supporting businesses that share Mad for Coffee's commitment to reducing single-use waste. This collaboration can also lead to co-branding opportunities, where Mad for Coffee's logo or branding is featured on the reusable products, reinforcing their brand presence and enhancing customer loyalty. Also, collaborating with local vendors who specialize in producing coffeerelated accessories, apparel, or lifestyle products creates opportunities for cross-promotion and strengthens Mad for Coffee's brand identity.

Build Loyalty And Promotion Programs
To attract and retain customers, loyalty programs and more frequent promotion programs are needed to implement in Mad for Coffee. Thus, the promotion needs to be implemented with consideration of several factors such as when to implement and what products are free or discounted. For example, if weekdays have lower sales than weekends, then the promotion program such as buy 1 get 1 or special discount could be implemented on weekdays to attract customer visits. When holding the promotion, Mad for Coffee also needs to promote it on social media to reach wider customers and other media. To retain customers and make them visit and spend more, loyalty programs also need to be implemented. Well known coffee shops such as Starbucks also have their loyalty program with their cards and mobile application. Since it is expensive, Mad for Coffee could implement the loyalty program with printed cards and stamps, so it will do it manually, and can implement 1 free coffee drink after 10 purchases.

Human Resources Improvement
To optimize its business operations, Mad for Coffee should focus on enhancing its human resources, specifically by investing in skilled marketing staff, specialty baristas, and parking staff for limited parking spaces. Improving the marketing team with competent and creative professionals is crucial to plan and execute effective marketing strategies. These marketing staff members can devise targeted campaigns, leverage social media platforms, and implement customer engagement initiatives to enhance brand visibility, attract new customers, and foster customer loyalty. By having dedicated marketing personnel, Mad for Coffee can stay ahead of competitors, adapt to changing consumer trends, and effectively communicate its unique value propositions to the target audience. Furthermore, employing specialty baristas with extensive knowledge and expertise in coffee preparation techniques is essential to elevate Mad for Coffee's product offerings and create memorable experiences for customers. These skilled baristas can craft intricate latte art, experiment with flavor profiles, and provide personalized recommendations, enhancing the overall coffeedrinking experience and setting the shop apart from competitors. Investing in specialty baristas not only enhances Mad for Coffee's product quality but also helps build a reputation for excellence, attracting coffee enthusiasts and connoisseurs. Lastly, given the limited parking space, having dedicated parking staff can alleviate the challenges associated with parking availability and ensure a smooth customer experience.

CONCLUSION
Although the market of coffee shops and healthy lifestyle are growing in Jakarta, as a dairy-free coffee shop, Mad for Coffee still has a huge number of competitors. Through an in-depth examination of both the internal and external factors impacting Mad for Coffee, this thesis has provided valuable insights into the company's strengths, weaknesses, opportunities, and threats. Based on the external analysis, the author found the coffee industry has intense competition. Competitors not only come from other dairy-free coffee shops, but also from regular coffee shops because they also provide a variety of dairy-free milk options. Moreover, from the internal factor, Mad for Coffee are not utilizing the power of their famous owner and their friends to help promote or to build partnerships or to collaborate with their coffee shop. In conclusion, Mad for For Coffee needs to increase their market awareness and sales to make the business sustain for a long period of time. From internal and external analysis in Mad for Coffee, then the author obtained SWOT analysis. From SWOT analysis, the author found that Mad for Coffee lacks marketing programs such as special discounts or loyalty programs to retain customers. Also, their social media contents are not really exposing their products and their strong branding as a dairy-free coffee shop. From matrix TOWS analysis, the author proposed several alternative marketing strategies that can be implemented by Mad for Coffee. The strategy encompasses various elements, including market segmentation, target audience identification, positioning, and the development of a compelling value proposition. Those alternatives are improving promotion by representing several strong points on Mad for Coffee and ads placement in social media, collaborating with influencers, community and media, developing loyalty programs and product promotion, and improving facilities and human resources in Mad for Coffee. By aligning these components with the company's overarching goals and values, the marketing strategy seeks to differentiate Mad for Coffee from its competitors, attract and retain customers, and drive sustainable business growth. To ensure the successful execution of the marketing strategy, a detailed implementation plan has been devised. This plan outlines the specific actions and timelines to bring the strategy to life. It encompasses various facets, such as marketing campaigns, promotional activities, digital marketing initiatives, customer relationship management, and collaborations with relevant partners or influencers. By following this structured implementation plan, Mad for Coffee can effectively execute the proposed marketing strategy, maximizing its impact and achieving its desired outcomes.