The influence of Bandung's online culinary business marketing innovation on competitive strategy during the COVID-19 pandemic

Abstract

The COVID-19 pandemic has had a huge impact on the economic and social sectors in the world, including Indonesia. Small and Medium Enterprises (SMEs) are also experiencing an economic crisis, including culinary business actors. Some Bandung Culinary SMEs are taking advantage of innovation, quality and competitiveness improvement, product processing, marketing systems, packaging, and the distribution of goods through Ride-Hailing services. Data show that there has been an increase of 40% for Grab food partners as a service (Ride-Hailing) during this pandemic, meaning that the formation of a digital ecosystem and changes in people's behavior in shopping have become a driving force for culinary SMEs to carry out marketing innovations to be able to survive and compete online. Marketing iInnovation during a pandemic is indeed very different than usual because globally there are changes that create new dimensions of business performance, organizations, products, and marketing concepts that are governed by online digital technology. As much as 65% of the food consumed eating out, ordering delivery, or taking home, is always done through delivery. This study aims to examine marketing innovations on competitive strategies during the COVID-19 pandemic. This study uses a quantitative method with an explanatory survey with an observation unit of 200 managers of Bandung Culinary MSMEs. The results of this study indicate that Bandung culinary SMEs carry out marketing innovations and affect competitive strategies as a form of MSME's ability to capture hidden markets or new markets so that sales increase. Marketing innovation variables are measured by product dimensions, marketing concepts, and technology utilization. The survey results, especially the outer marketing innovation model, show that the product in this marketing innovation has the highest number of product qualities and creates a unique product. While the highest marketing concept variable is using social media for marketing and promotion. And for marketing technology a significant variable is the influence of social media on product activities. So, it can be concluded that Bandung culinary MSMEs can survive during the COVID-19 pandemic by adapting to changes in people's behavior by making marketing innovations, especially related to products, marketing concepts, and the use of technology.