AN INNOVATION STRATEGY FOR PRODUCT INNOVATION: A CASE STUDY OF CILOK SAE

Abstract

The culinary industry, is one part of the creative economy in Indonesia that has a great potential to be able to advance the Indonesian economy. There are huge potential of the culinary industry and high tourism in Bandung, In order to compete in Bandung that has very tight food business, Cilok Sae must have a difference with other products. Innovation is a fundamental part of organizational development. Innovation in business is not just about sophisticated technology. Innovation process in a business starts with product innovation. Product innovation does not always have to create a new product, but it can also improve the quality of the product that already sold by a company.
To do product innovation, this research is using innovation strategy steps adapted from Cooper and Edget (2010). This strategy starts from analyzing business issues, setting goals of innovation, analyzing business situations both in terms of industry analysis using Porter 5 Forces and company analysis using SWOT and TOWS, determining the arena of strategic focus with Ansoff matrix (2013), attack strategy, allocating resources by determining strategic bucket and strategic product, and strategy implementation. To support this research there are two data collection techniques: documentation and questionnaire.
The strategy taken by Cilok Sae based on research results is new variant by adding two new variants, new packaging by making packaging designs for new flavors and changing the use of plastic materials and stickers, advertising by using social media advertising, and sales promotion by using free samples and discounts.
Keyword: innovation strategy; new variant; new packaging; advertising; sales promotion