HAI Coffee and Space’s Promotion Strategy to Increase

the Number of Customers

By

Ardaradja Kusuma Bagaskara

18.J2.0026

ENGLISH STUDY PROGRAM

FACULTY OF LANGUAGE AND ARTS

SOEGIJAPRANATA CATHOLIC UNIVERSITY

SEMARANG

2021
A. TITLE
Hai Coffee and Space PROMOTION STRATEGY TO INCREASE THE
NUMBER OF CUSTOMERS

B. BACKGROUND OF THE STUDY

One of the coffee businesses in Semarang is HAI Coffee and Space, this
is a café that focuses on coffee and is prepared manually called “manual brew”.
They prepare their coffee using a traditional way and fresh ingredients such as
specially picked coffee beans, fresh milk, and other fresh ingredients. Thus it
makes their coffee very tasty and has a unique taste of its own. HAI Coffee and
Space is known for its concept which is really unique and fun, while at the same
time providing a place to stay and enjoy their coffee while doing their activities
such as paper work, meeting, studying, and even playing games there. Based on
my observation in HAI Coffee and Space during this pandemic, the writer can
see that even though the pandemic struck globally, this particular establishment
still has customers come and go. With that reason, the writer is interested in
conducting a study on marketing strategies that are used by HAI Coffee and
Space during this pandemic era.
HAI Coffee and Space has carried out several promotional activities to
increase the number of customers, such as providing attractive promotions to
potential customers. In almost its one year of existence, HAI Coffee and Space
has an average of 300 customers per month. The number of HAI Coffee and
Space monthly customers does not always increase. At certain times there is a
decrease in the number of customers due to close competitors who are trying to
offer the same service. Therefore, HAI Coffee and Space needs to create a
strategy to keep increasing the number of customers.
In this research the writer will solely focus on the promotion strategies that is used by HAI Coffee and Space during this

pandemic era and how effective the strategy is during the pandemic era. Studying the definite strategy of this particular establishment will

grant knowledge on how to manage our business even when a global pandemic attacks out of nowhere and by studying this it will give us a

lot more perspective to maintain our business using this particular establishment’s choice of marketing strategy.

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 Research on promotional strategy has been done by (Rupolia, Choudhary,
& Purohit, 2004). Their research aims to determine promotional strategies that
can increase sales of Apparel Street Vendors. The aim of the study is to identify
the various Promotional Strategies adopted by the Street vendors for romoting
their products and also particularly bring out the most effective technique in
promoting their Street wares that influence customers shopping decision. This
research is done using the vendors promotional tool, then analyzes them by using
qualitative and quantitative method. This research resulted that mouth to mouth
strategy is the best one to use and thus resulting a suggestion that the Apparel
Vendors should use mouth to mouth strategy rather than any other.
Another research was conducted by (Ulle & Patil, 2018) that studies the
effectiveness of promotional strategies using sales promotion technique. The
objective of this study is to study the existing sales promotion activities
conducted at palace Honda and to suggest suitable sales promotion activities be
conducted at palace Honda by using a quantitative and qualitative method. The
result of this study, is that sales promotion is very important for the success or
failures of the company. Consumers are the life of blood of every organization
whether it is a small company or large companies in the automobile sector have
to be more concentrate on the effectiveness of promotional strategies using sales
promotion techniques. Because the customers will be an asset to the company.
From the study on the topic is found that by sales promotional strategies like
demo van show, cash back offer, and private workshop owners are significant
but did not significant for free insurance, discount, accessories, and loan cum
exchange mela.
In short, this study is expected to provide information on how to develop
appropriate promotion strategies for HAI Coffee and Space. The related
information is important for the writer. The writer hopes that the result and data
from this research can help the owner of HAI Coffee and Space improve his
sales and overall strategy regarding promotion.

C. FIELD OF THE STUDY

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The field of study is the creative industry focusing on promotion strategies.

D. SCOPE OF THE STUDY

This study will focus on promotion strategies for coffee shop business
entrepreneurs and link it to marketing.

E. RESEARCH QUESTIONS
The research question is “What are the promotion strategies of HAI Coffee and
Space to increase the number of customers?”

F. OBJECTIVES OF THE STUDY

The objective of the study is “To find out the promotion strategies of HAI Coffee
and Space to increase the number of customers.”

G. SIGNIFICANCE OF THE STUDY

The writer expects that this study will help entrepreneurs to find out the
promotion strategies to increase the number of customers, especially the
customers of a coffee shop. The writer hopes that this study will benefit those
who are interested in the same business. From the writer's perspective, this
research is conducted as a reference to the online promotion strategy. From the
reader's perspectives, especially entrepreneurs, the writer hopes that this research
can contribute to coffee shop entrepreneurs as material for planning and
evaluating promotion activities to increase the number of customers.

H. DEFINITION OF TERMS
1. Promotion strategy
Promotion strategy, according to Sistaningrum (2002) is expressing the meaning
of promotion is an effort or company activity in influencing "actual consumers"
and "potential consumers" so that they want to make purchases of the products
offered, currently or in the future. Actual consumers are consumers who directly
buy the products offered at the time or shortly after the promotion of the product

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is launched by the company. Potential consumers are consumers who are
interested in making purchases of the products offered by the company in the
future.
2. Coffee Shop
Chun (2018) states that a coffee shop is simply an establishment that sells coffee
and some food items. Coffee sold in such shops is usually a drip coffee or with
decaf. Some of these shops may have espresso machines although it is not a must
as espresso drinks are not their major focus.
I. REVIEW OF LITERATURE
I.1. Marketing
Marketing has a broad understanding. Many can define marketing with
different understandings and opinions, thus creating a few definitions made by
different researchers. According to Vasan (2020) marketing is the strategic and
tactical execution of an initiative whose primary goal is to draw attention to a
product or service. Marketing campaigns can be ongoing to appeal to a defined
user base or can specifically target short term focuses. It is important to segment
tactics based on channels. For example, a digital strategy might focus on traffic
and lead generation, while a traditional strategy might include attending trade
shows to help build long term personal relationships. Depending on which route
you choose, the tools and targeting can change dramatically. Overall, in today’s
digital world, traditional marketing methods often work hand in hand with digital
solutions.
Through many definitions of marketing, a few experts have stated their
ideas and understanding about marketing itself. Anaejionu (1990) states that
marketing is educating the potential customers, raising their desire for
transformation, and increasing their ability to make an informed sales decision
by differentiating your solutions from all their other options. When marketing is
done well, sales become easy, because the customer not only believes their
situation can change but that your product will be a key part of that change.
Terech (2018) defines marketing as “the science and art of exploring,
creating, and delivering value to satisfy the needs of a target market at a profit.

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Marketing identifies unfulfilled needs and desires. It defines, measures and
quantifies the size of the identified market and the profit potential. From that
definition we can conclude that marketing is like a canvas for someone to
express themselves to achieve their target but according to reach that goal one
has to have the desire to do so..
From those explanations, the writer can conclude that marketing is a part of sales
and economic where you interact with customers or clients in a certain or
elaborate way to achieve your goals.
I.2. Promotion
In every business, promotion is a very common strategy to let people
know what product they are trying to sell to consumers. Promotion is a
marketing activity that's commonly carried out by marketers to provide
information on a product and encourage consumers to purchase the product.
There are so many ways and media promotion, even the promotion method
always develops during the time.
Kotler (2016) defines promotion as a part and process of marketing
strategy as a way to communicate with the market by using a promotional mix
composition. From this explanation we can conclude that promotion is a base
and a form of marketing that tells customer or consumers what they are trying to
sell by using promotional mix composition.
Gitosudarmo (2000) defines promotion as an activity aimed at
influencing consumers so that they know the products offered by the company to
them and then they become happy and then buy the product. From this
explanation we can conclude that promotion is a way to influence customers to
buy the product they are trying to sell or offer. By using these steps the writer
can conclude that from the explanation, a promotion activity can run smoothly
and can reach a definite goal. By first influencing customers and making them
aware of a certain product, it will create an impulse to buy the product that was
offered.
I.2.1Promotion Purpose
The purposes of the promotion, according to Suryani & Syafarudin (2021) :

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a.Informing
This objective is informational, where producers use promotions to inform the
market about what is being offered. This promotion is often used in the early
stages of the product life cycle.
b.Persuading
This goal is to persuade, where the company tries to give a positive impression to
the customer. This means that it can have a long-term influence on customer
behaviour.
c.Reminding
The goal is to retain customers by constantly reminding them of the company's
products or services.
I.2.2. Promotion Function
Promotion has its own function and these functions will benefit greatly for the
business. There are three main functions of promotion, according to Rizky &
Yasin (2014) in promotional activities, namely:
a. Seek and get the attention of potential buyers
The attention of potential buyers must be obtained because this is the starting
point of the decision-making process.
b. Growing interest in goods and services to potential buyers
Attention that has been given to the goods or services should be developed so
that the consumers continue to the next stage.
b. Develop the desire of buyers to choose the services offered
This is a continuation of the previous stage. After someone is interested in
something, there is a sense of wanting to have it, and if they feel it, the sense of
wanting is even greater and will be followed by a positive decision.
I.2.3. Promotion Mix
A promotion mix is a set of different marketing approaches that
marketers develop to optimize promotional efforts and reach a broader audience.
The marketer’s task is to find the right promotion mix for a particular brand.
From this explanation the writer can conclude that promotion mix is one of the
many strategies to bring their products to a broader and a more diverse

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consumers thus making promotion mix a crucial step for companies and
businessmen.
Gary Armstrong (1928) states that promotional mix includes advertising,
personal selling, sales promotion, public relations, direct marketing. It also
includes product design, shape, package, colour, label as all these communicate
something to buyer.
According to Kotler (2016) a company’s total marketing communications mix
also called its promotion mix consists of the specific blend of advertising,
personal selling, sales promotion, public relations and direct marketing tools that
the company uses to pursue its advertising and marketing objectives.
a. Advertising

Advertising can be used to build up a long-term image for a product (Coca-Cola ads) or trigger quick sales (a Sears ad for a

weekend sale). Advertising can reach geographically dispersed buyers efficiently. Certain forms of advertising (TV

advertising) typically require a large budget, whereas other forms (newspaper advertising) can be done on a small budget

b. Sales Promotion

Although sales-promotion tools—coupons, contests, premiums, and the like—are highly diverse, they offer three distinctive

benefits: (1) communication (they gain attention and usually provide information that may lead the consumer to the product);

(2) incentive (they incorporate some concession or inducement that gives value to the consumer); and (3) invitation (they

include a distinct invitation to engage in the transaction now). Sales promotion can be used for short-run effects such as

dramatizing product offers and boosting sales

c. Public Relations and Publicity

The appeal of public relations and publicity is based on three distinctive qualities: (1) high credibility (news stories and

features are more authentic and credible than ads); (2) ability to catch buyers off guard (reach prospects who prefer to avoid

salespeople and advertisements); and (3) dramatization (the potential for dramatizing a company or product)

d. Personal Selling

Personal selling has three distinctive qualities: (1) personal confrontation (it involves an immediate and interactive relationship

between two or more persons); (2) cultivation (it permits all kinds of relationships to spring up, ranging from a matter-of-fact

selling relationship to a deep personal friendship); and (3) response (it makes the buyer feel under some obligation for having

listened to the sales talk)

e. Direct Marketing

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 All forms of direct marketing—direct mail, telemarketing, Internet marketing—share four distinctive characteristics: They are

(1) nonpublic (the message is normally addressed to a specific person); (2) customized (the message can be prepared to appeal

to the addressed individual); (3) up-to-date (a message can be prepared very quickly); and (4) interactive (the message can be

changed depending on the person’s response).

I.3. Promotion Strategy

In order to attract customers, a promotional strategy is needed the right

way, so that what the company wants can be achieved, namely: increase sales
volume. By using the correct promotion strategy, businesses can flourish their
product to designated market of customers.

According to Kotler (2016) promotion strategy is the marketing logic by

which a business unit hopes to create value and profit from its relationships with
consumers. The notion of marketing strategy is a marketing mindset that will be
used to achieve marketing goals, in which there is a detailed strategy regarding
the target market, positioning, marketing mix, and budget for marketing.

According to (Lamb, Hair Jr, & Mcdaniel, 2011) a promotional strategy is a plan
for optimal use of the promotional elements: advertising, public relations,
personal selling and sales promotion.

I.3.1. Steps to Formulate a Promotion Strategy

Strategic goals must be sharper than the mission but still broad enough to
encourage creativity and innovation across all work units (Salsabila ,2018).
Salsabila (2018) explains the steps in formulating a strategic plan, namely:
a. Determining the strategic planning period, determining the strategic planning
period ranging from 3 to 5 years.
b. Establish and review the mission and vision of the organization; the mission is
the basic reason why establishing the organization. This mission is also stated in
the organization's articles of association. The mission statement generally

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contains 4 (four) things, namely, why (the purpose or reason for establishing the
organization), what (field of activities to be carried out), who (who will be
involved), and how (the ways and values adopted in the mission statement).
carry out activities). While the vision is a statement of ideals, desires or
expectations of the founders, leaders and members of the organization regarding
the shape and characteristics of the organization in the future. It is the vision that
will guide the organization in the future. The determination of the vision and
mission is carried out by considering stakeholders' expectations (interested
parties in the organization).
c. Analyzing developments and influencing external factors, namely what
external factors are very influential on strategic decisions.
d. Identify the product position through a SWOT analysis of opportunities,
threats, strengths, and weaknesses. Companies should conduct a SWOT analysis
so that they can clarify the nature of tensions by juxtaposing two main
dimensions, good (strengths or opportunities) and bad (weaknesses or threats)
and the future (opportunities and threats).
e. Formulating long-term targets. This long-term program will be further
elaborated into annual and monthly operational work plans.
I.3.2. Steps of Implementing Effective of Promotion Strategy Activity
The stage of implementation is the most important step to reaching promotional
goal. By carefully paying attention to these steps, the execution of promotion
will be more efficient and thus this implementation stage is crucial and should be
carried with the utmost care.
According to Kotler & Armstrong (2016) these are the steps of implementing an
effective promotion strategy :
a. Identify the target audience.
The audience is an important element in terms of economic and promotion
activity. A marketing communicator starts with a clear target audience in mind.
The audience may be potential buyers or current users, those who make the
buying decision or those who influence it. The audience may be individuals,
groups, special publics or the general public. The target audience will heavily

9
affect the communicator’s decisions on what will be said, how it will be said,
when it will be said, where it will be said and who will say it. From this
explanation the writer can conclude that identifying target audiences is a must
and by studying them a little deeper, it can result in tremendous useful
informations.
b. Defining Communications Objectives
Once the target audience has been defined, the marketing communicator must
decide what response is sought. Of course, in many cases, the final response is
purchase. But purchase is the result of a long process of consumer decision
making. The marketing communicator needs to know where the target audience
now stands and to what state it needs to be moved. To do this, he or she must
determine whether or not the customer is ready to buy. The target audience may
be in any of six buyer-readiness stages – the stages that consumers normally pass
through on their way to making a purchase. These stages are awareness,
knowledge, liking, preference, conviction and purchase. By knowing clearly
what the objectives are, the writer can conclude that to define the objectives, the
six stages must be completed. The stages starts by knowing the product itself
into how the customers will buy the product and by knowing these stages, the
objective will be clear.
c. Designing messages
Designing how the message is going to be delivered is crucial because it will let
the consumers know how each company will bring out their product. Having
defined the desired audience response, the communicator turns to developing an
effective message. Ideally, the message should get Attention, hold Interest,
arouse Desire and obtain Action (a framework known as the AIDA model). In
practice, few messages take the consumer all the way from awareness to
purchase, but the AIDA framework suggests the desirable qualities of a good
message. In putting the message together, the marketing communicator must
decide what to say (message content) and how to say it (message structure and
format). From this explanation, the writer can conclude that by deciding and

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structuring the message content and format, the company is sure to deliver their
message about their products to the consumers.
d. Choosing Media
The communicator must now select channels of communication. There are two
broad types of communication channel: personal and non-personal.
e. Collecting Feedback
After sending the message, the communicator must research its effect on the
target audience. This involves asking the target audience members whether they
remember the message, how many times they saw it, what points they recall,
how they felt about the message, and their past and present attitudes towards the
product and company. The communicator would also like to measure behaviour
resulting in the message – how many people bought a product, talked to others
about it or visited the store. By knowing the feedback of customers, the company
can take action to improve or take countermeasures to unwanted events.
f. Setting the Total Promotional Budget
Promotion spending may be 20–30 per cent of sales in the cosmetics industry
and only 2 or 3 per cent in the industrial machinery industry. Within a given
industry, both low and high spenders can be found. There are four common
methods used to set the total budget for advertising: the affordable method, the
percentage-of-sales method, the competitive-parity method and the objective-
and-task method. From this explanation, the writer can conclude that by knowing
and planning a certain promotional budget, it will give comfort to companies
knowing that their expense has been recorded and to know what steps to take
next.
g. Setting the Promotion Mix
Promotion tool with another that will do the same job more economically. Many
companies have replaced a portion of their field sales activities with telephone
sales and direct mail. Other companies have increased their sales promotion
spending in relation to advertising to gain quicker sales. Designing the
promotion mix is even more complex when one tool must be used to promote
another. Thus when British Airways decides to offer Air Miles for flying with

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the company (a sales promotion), it has to run ads to inform the public. When
Lever Brothers uses a consumer advertising and sales promotion campaign to
back a new washing powder, it has to set aside money to promote this campaign
to the resellers to win their support. From this explanation, the writer can
conclude that before companies decide the promotion mix, they must first learn
each nature of the elements or tools of the promotional mix itself from
advertising, personal selling, sales promotion, public relations, and direct
marketing.
h. Integrating the Promotion Mix .
Having set the promotion budget and mix, the company must now take steps to
see that all of the promotion mix elements are smoothly integrated. By knowing
how to integrate the promotion mix, companies must take a few steps to ensure
the safety and precision of the said promotion mix. Here are the list to integrate
perfect promotion mix effectively and efficiently :
Analyse trends – internal and external – that can affect your company’s ability to do business.

Audit the pockets of communications spending throughout the organisation

Identify all contact points for the company and its brands

Team up in communications planning

Create compatible themes, tones and quality across all communications media

Create performance measures that are shared by all communications elements

Appoint a director responsible for the company’s persuasive communications efforts

METHOD OF DATA COLLECTION AND ANALYSIS

J.1. Research Design
The writer uses qualitative research types. According to (Farr, 2008)
qualitative research is a type of scientific research. In general terms, scientific
research consists
of an investigation that:
• seeks answers to a question
• systematically uses a predefined set of procedures to answer the question
• collects evidence

12
• produces findings that were not determined in advance
• produces findings that are applicable beyond the immediate boundaries of the
study
Farr (2008) also states that qualitative research shares these characteristics.
Additionally, it seeks to understand a given research problem or topic from the
perspectives of the local population it involves. Qualitative research is especially
effective in obtaining culturally specific information about the values, opinions,
behaviors, and social contexts of particular populations. The research is directed
to obtain facts related to the promotion strategies of HAI Coffee and Space.
J.2. Method of Data Collection
J.2.1 Participants
The participants in this study are the owner of HAI Coffee and Space and ten
customers of HAI Coffee and Space who will be interviewed about promotion
strategies.

J.2.2 Instrument
There are many types of qualitative research tools; however, it must be
chosen according to research objectives. To choose the proper one or ones
researchers must answer the following questions: What are you really planning
to find out? How are you going to observe the target population? What´s the
best tool to observe certain variables or indicators?a Among the most used
instruments in research are the observation, the survey and the interview (De
Trigueros, 2017)
This research will be collected using three forms of instrument:
observation, interview, and documentation. An observation is a means of
measuring what the writer hears, sees, and thinks. The writer will give some
questions and ask the owner of HAI Coffee and Space and ten customers of HAI
Coffee and Space. Documentation collects documents and data needed related to
the researcher's problems, then studies them intensively to support and prove an
activity.
J.2.3 Procedure
For this study, the writer will take the following procedures to collect the data:

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1. Research Preparation Stage
At the research preparation stage, the writer will do the things that are needed,
namely:
a. The writer will ask permission from the owner of HAI Coffee and Space and
ten customers to be interviewed.
b. The writer will set the date, time, and place of the interview according to the
availability of the HAI Coffee and Space’s owner and ten customers of HAI
Coffee and Space
c. The writer will take photos, videos, and notes during the interview process
and collect the documents.
2. Research Implementation Stage
a. In the implementation stage, the writer will go to the HAI Coffee and Space
location in Simpang Lima, Semarang, and conduct an interview. The writer will
interview the owner of Trend Barbershop and ten customers of HAI Coffee and
Space by asking questions about the promotion strategies used by HAI Coffee
and Space.
b. The writer will evaluate the steps to formulate a promotional strategy, the
process or stages of implementing promotional activities, and analyze the
promotion strategy of HAI Coffee and Space.
c. The writer will analyze the data from the interview results and make a
narration according to the interview results.
J.3. Method of Data Analysis
The writer will use descriptive qualitative data analysis. Data analysis is defined
as a process of cleaning, transforming, and modeling data to discover useful
information for business decision making. The purpose of Data Analysis is to
extract useful information from data and taking the decision based upon the data
analysis (Bustin & Nolan, 2019).
In this research, the writer will analyze the data collected using the theory of
marketing strategy, promotion strategy, and service marketing strategy. Stages
and steps to formulate a promotion strategy will be explained.
J. TIME TABLE

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N Activi
o ty
1 Data
. Colle
ction
2 Data
. Analy
sis
3 Thesi
. s
Writi
ng
and
Consu
ltation
4
.

No Activity Jan Feb March April

2022 2022 2022 2022

3. Data Collection
4. Data Analysis
5. Thesis Writing and
Consultation
6. Thesis Exam

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APPENDIX/APPENDICES
Pada bagian ini anda melampirkan rencana instrumen penelitian, ringkasan karya
sastra/film.

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