Tech & Influencer Marketing for Business Survival in COVID-19: Baba Rafi Case Study, Study Guides, Projects, Research of Entrepreneurship

Download Tech & Influencer Marketing for Business Survival in COVID-19: Baba Rafi Case Study and more Study Guides, Projects, Research Entrepreneurship in PDF only on Docsity! INTERNATIONAL MANAGEMENT BUSINESS CASE COMPETITION Oo, N NATASYA - NADYA - NAZLIN The answer to this abstract problem is prepared to take part in IMBUSION 2021 organized by the Surabaya State University Management Student Association. Arranged by: 1. Nadya Syaqeenah binti Mahadzir (Chairman) 2. Alia Natasya binti Muhammad Roslan (Member) 3. Nazlin Munira binti Mohd Nazri (Member) 2021 FOREWORD Bismillahirrahmanirrahim, Alhamdulillah, thank you to Allah SWT, who with His willing giving me and my groupmate the opportunity to complete this whole assignment. This report was prepared virtually which is having class through an online session which is quite challenging but we did manage it until this report was done. Firstly, we would like to express our deepest thank you to the organizers of the competition for giving us the opportunity to participate in this competition and gain experience that will benefit us in the long run. Next, we would like to thank the lecturers that have assisted us throughout our journey; Madam Janiffa Saidon, Madam Ainie Hairianie and Miss Nuryusmawati Mohd Yusof. Lastly, deepest appreciation to our parents, and family for their cooperation, encouragement, constructive suggestion and support in the completion of the report from the beginning till the end. Other than that, thank you to the people who contribute by supporting our work and helping us by answering our survey that have been conducted during this report progress until itis fully completed. This document is for the purpose of the International Management Business Case Study Competition with the tagline “ Youth Innovator As Catalyst To Realize SDGs 2030”. It is the collaboration from couple University which is the organizer by UNESA and UiTM. This case study that is given by the organizer is for finding the solution for Baba Rafi’s Businesses during the pandemic. Though our document may still have its lacking areas as it is our first time participating in this type of competition, we definitely worked hard and tried our best in order to complete this proposal as well as possible. We hope that this document can be utilized for business purposes and would benefit the readers in any way that is relevant. 1.0 BACKGROUND Hendy Setiono as the founder of Baba Rafi was established in 2003 where he started a small business in Surabaya. The name of Baba Rafi came from the word Baba which means father in Indonesia while Rafi from Hendy’s first son's name. He started a kebab named Kebab Turki business witha single stall. After 2 years, Hendy set up a franchise for Kebab Turki as the business sales began to rise day by day. All of Baba Rafi’s effort in terms of making sure the business grows well is successful as Kebab Turki already established 336 outlets around Indonesia in 2007. Moreover, Baba Rafi also upgraded their logo of Kebab Rafi in 2008 and after a year Baba Rafi decided to enlarge their business into the international market as they started to open their first franchise of Kebab Turki in Malaysia and Philippines, and achieved a variety of awards even until now. By opening a lot of franchises around the world, Baba Rafi provides a lot of working opportunities to other people as they recruit as their employees. Baba Rafi does not only have an esteemed reputation in their home country, but they have branched out in several other countries. The decision to go international was firstly made in 2009. In the years that followed, Baba Rafi witnessed the grand opening of their outlets in several neighboring countries, beginning with Malaysia. It was then the Philippines, China, Sri Lanka and plans were made to further expand their name in countries such as Singapore, Brunei and the Netherlands. By 2015, more than 1200 Baba Rafi outlets could be found across Asia. Besides the kebab business that kickstarter Baba Rafi’s road to stardom, Baba Rafi has a variety of other different brands under their name. This includes Container Kebab, Tambak Udang Vaname, Ngikan, Nyapii, Nyayap and Menantea. Around 2020, all around the world were faced with the Covid-19 pandemic. The pandemic has given a huge impact to all businesses including the Food and Beverages field. Baba Rafi as a culinary-centric company tries to find out as many as possible plans in order to survive during the pandemic. There are few plans made in order to ensure all the franchises in a few countries are well managed. The highlighted solution was to use the influencer who represented the country as a marketing method to attract users and use the food delivery platform application to ease the users to get their product. There also the new method has come out to be implemented which is to try to adapt with the product offering with vouchers on any platform, and adjusting the supply chain to save the amount of their capital. 2.0 FORMULATION OF THE PROBLEM The COVID-19 pandemic did not only disrupt the personal lives of everyone worldwide, but also took a toll on many businesses. It is important for businesses to come up with ways in order to ensure that their business will manage to strive through the impact of the pandemic. Baba Rafi also faced threats to the business during the pandemic era. However, Baba Rafi manages to survive thanks to the strategies and solutions they implement to ensure the survival of the business. The problem arose when the business faced the negative growth of sales which impacted the whole business to roll their capital. This is due to the pandemic affecting the possible customers to dine in, take away or even go out from their houses as a precaution from being infected by Covid-19. Other than that, if Baba Rafi did not take any action from the changes of pandemic, it would affect the business and might face financial problems in all their franchises in long and short term effect. Therefore, the solution suggested is to help the Baba Rafi to boost their business and could gain more sales even during the pandemic. It is analyzed that a business including Baba Rafi can survive during a pandemic by innovating and being creative which helps in attracting potential customers by the power of social media to try new things especially during the quarantine period. 3.0 RESEARCH METHODS An online survey on ‘Impact of Influencers on Market Sales During COVID-19 Pandemic’ was used as a research method for this case study to analyze the impact of influencers on market sales. Fifty respondents (50) from diverse backgrounds teported their opinions regarding the impact of using influencers as a marketing method. The survey contains basic information like gender, age and state. Followed by a sample question, “Do you regularly use social media?” with 5 likert-scale which tepresent 5- cannot live without it and 1- don’t have social media. Next sample question, “Do you think products promoted by influencers give an impact?” with multiple choice either yes or no. In addition, “If your favorite influencers promote a product, would you buy it?” and “If a product came out with a new way of promoting besides using the influencers, would you still buy the products?” with 4 likert-scale which represent 4- definitely and 1- no. Besides, “Who is the influencer that you think has a huge impact on market sales?” also one of the sample questions for this survey. Lastly, the sample question is “If the products doesn't use any influencers in terms of promoting their products, you will buy the products based on......” where tespondents could give their own favorite influencers. Besides, research from articles or websites that are related contributed to finding solutions for this case study. teceived good experience and the apps used are already operated long-term in the foods applications market. This will ease the process for all Baba Rafi’s franchises to be more recognised by many people. It is also easy to use and can provide to the customers more vouchers and promotions. Furthermore, Baba Rafi’s should market their product on Social Media platforms like Instagram, Twitter, Tiktok, and Facebook. This to get all generations’ attention easily. This is because almost 76% of respondents were using social media regularly. From this platform also, potential customers can get the visual of the product, place and the teviews from the past customers in all places about them. It can persuade potential customers to try and visit the Baba’s Rafi’s franchise product and place by themselves. This method is the most effective due to it being the cheapest method to do brand recognition. This method also helps their business by tackling the google analytics to attract the users and tracking the insight of the marketplace. Social media also helps the business to always connect with the audience in all places. For example, customers can make complaints which can make them interact with each other to serve customers to the maximum satisfaction. From there they can build the customer's loyalty. Do you regularly use social media? 50 responses 30 20 0 4 1 (2%) 1 2 Figure 3. Percentage of Regularly Use Social Media There is another method to make sure Baba Rafi’s business survives during this pandemic which is adapting the product offering. There are many type of offering can be made for example that can be use in few country is joining the Shopee apps to introduce their product by sell the promotion voucher as low RM0.01 only. From here customers can try their product at a low price for the first purchase or even for the tepeat customers. Next, they can produce more vouchers daily or seasonal to their set products or even ala carte products and launch it at their own website or apps. Other than that, they can make special events or seasonal products to create more awareness of the trending menu. For example, introduce cultural flavour to their product such as kebab rendang that is only available during Raya month. Lastly they can do great deals like happy hours or free foods for certain products chosen. For example,make an offer for lunch time or do buy one free one deal to attract possible customers to have lunch with great deals or . All ideas above are applicable to all franchises under Baba Rafi. In addition, Baba Rafi could also adjust their supply chain such as raw materials where they can survey and find the suppliers with a better price. The lower the price the better, this is because they could gain income and reduce the risk of losses. During this pandemic, most of the stocks from around the world dropped starting from February. However, there is no change in people still wanting the lowest price of the products, so it will be challenging for the business to find out the best strategy to maintain their supply chain without any flaws. Besides, Baba Rafi could improve by investing in their technologies in terms of manufacturing. There are many technologies needed in their kitchens in order to get smooth production for all products in all their franchises. For example, most of their businesses need a proper freezer to store their marinated products like meat, chicken and seafood. Another example is they also need better machines to produce their own bread or wrap for the kebab due to the fact that making a huge stock by human workforce is not as effective as the machines. However, during this pandemic the flow of the supply chain was a bit different than before. In order to make sure everyone is safe and healthy during this pandemic, the suppliers should implement hand-free devices where every machine is contactless and connected with voice activation that could give instructions to the machines. The information has to be syne with everyone who has the connection in order to avoid any mistakes. Moreover, the supplier could use an automated reporting system as now it is a difficult time especially for the transportation in terms of their operation and deliveries. Baba Rafi could use an integrated mobility and IoT-management platform in order to improve their shipment with better quality and efficiency while ensuring that remote sensors are operational to guarantee that consumables are kept at the proper temperature throughout transportation. Furthermore, Baba Rafi should implement safety and regulation telated to their delivery drivers as they might face some problems during their route such as problems with their tyres or high water temperature. 10 4.2 SWOT ANALYSIS In order to tackle problems that may threaten the longevity of the business, it is important to recognize the company’s strengths, weaknesses, opportunities and threats by conducting a thorough SWOT analysis. Baba Rafi has various strengths that help it stand out from the rest. Firstly, Baba Rafi has a very successful product line. Even though Baba Rafi has several brands under its name, each brand is very successful and popular which broadens their market appeal. Baba Rafi’s insistence to implement Sustainable Development Goals (SDGs) also shows that it is a company that prioritizes corporate social responsibility (CSR) which improves brand image. However, Baba Rafi also has a weakness which is poor international brand awareness. Although Baba Rafi has a large reputation in Indonesia where it originated, it is not well known in other countrie’s outlets like Malaysia, China, Netherland, Philippines and Sri Lanka. This weakness can be overcome by managing social media accounts that are specific to each country to create more brand tecognition and build the audience to be the possible customer. For example, @ktbrmalaysia on Instagram is an account specifically for Baba Rafi in Malaysia but it is inactive, while accounts for China, Netherland, Philippines and Sri Lanka cannot be found in Instagram which is one of the reasons Baba Rafi is not well known in as in their originated country. Social media is needed to be used to appeal more to potential customers in all country outlets and increase their brand awareness. From that, Baba Rafi should invest more in recruiting social media marketers in order to make sure the awareness of the product reaches other people through media social marketing as it is one of the best platforms to market the products which are applicable in all countries in the world. By having social media marketers, their social media will look more interesting that could attract more people. Baba Rafi also has many other opportunities that will help their business go wider in all places. Baba Rafi is known for having many brands under it and it is able to manage all the brands successfully, thus it has the opportunity of developing more products for more market segments. Since Baba Rafi is trusted in how good it is at developing new ideas, it will gain attention from its loyal customers whenever it introduces a new brand or new product. Lastly, Baba Rafi may face threats to the business too. A threat that Baba Rafi may face is that new products may potentially ruin the business. Since Baba Rafi has to keep up with their excellent reputation, if they introduce something new that is not accepted well, it may cause severe damage to the brand’s image and customer loyalty. 11