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MARKETING STRATEGY OF MSMEs DURING THE COVID-19
PANDEMIC ERA FOR CATERING ENTREPRENEURS
Chinatha Erwin Sandika Putra
1
, Muhamad Sulsamar Kaimudin
2
, R. Desardi
Purwanto
3
, Satria Adyatma
4
, Siti Rahmawati
5
Department of Management, STIMA IMMI, South Jakarta, DKI Jakarta, Indonesia
1
2
amarlintas11@yahoo.com
3
4
5
rahma.kemen[email protected]
PAPER INFO ABSTRACT
Received: June
2022
Revised: July
2022
Approved: July
2022
Background: Many MSMEs have gone out of business as a result of
restrictions on community activities during the pandemic, thus affecting
income and decreasing business turnover. However, from several business
sectors, the food and beverage industry is quite able to withstand the
pandemic. With digital marketing or online sales, business actors take
advantage of these opportunities to reduce the impact of the COVID-19
pandemic in selling food catering businesses.
Aim: This study aimed to find out the MSMEs Marketing Strategy carried
out by catering entrepreneurs named Mrs. Endah and Mrs. Yanti.
Method: The approaches used in this study are the literature review
approach, journal documentation, and interviews. In this study, the literature
review and journals used are the theories that are the basis for the research.
Findings: Marketing strategies that can be done include using digital
advertising media such as Instagram, Facebook, and Youtube, or using other
market places. This is done because customers do not have to meet and or
gather directly at food stalls but can use delivery services. Thus, the net profit
of catering business owners is expected to increase again.
KEYWORDS
COVID-19, MSMEs, catering
INTRODUCTION
The COVID-19 pandemic has made it difficult for some businesses to develop due to
government policies that ask people to do activities at home, making some businesses lose
consumers (Donthu & Gustafsson, 2020; Masrul et al., 2020; Wahyuningtyas, 2020). One of
the sectors that also experiences the impact was the Micro, Small and Medium Enterprises
(MSMEs) sector. In accordance with Government Regulation Number 7 of 2021 concerning
the Ease, Protection and Empowerment of Cooperatives and Micro, Small and Medium
Enterprises, it is explained that Micro Enterprises are productive businesses owned by
people/individuals and/or with business capital up to one billion Rupiah, while Small
Businesses have business capital of more than one billion rupiah to five billion Rupiah, and
Medium Enterprises have a business capital of more than five billion Rupiah.
The MSMEs economic system is carried out by a group of people. This business, in
addition to playing an important role in the national economy, also plays a role in overcoming
the unemployment rate, development and empowerment (Indika & Marliza, 2019). Therefore,
MSMESs are very important to be prioritized because they can overcome an obstacle and are
resistant to changes in the situation and surrounding conditions (Nasel & Hermawan, 2021).
MSMESs in Indonesia are considered to be able to develop the economy while increasing
optimal income and can reduce the number of unemployed (Prasetyo, 2021).
Marketing Strategy of MSMEs During the COVID-19 Pandemic Era for Catering Entrepreneurs
1259 Interdisciplinary Social Studies, 1(10), Jul 2022
As one of the pillars of the Indonesian economy, MSMEs have a significant role, including
contributing greatly to GDP, namely 61.97% of the total National GDP or equivalent to Rp.
8,500 trillion (Wardiningsih, 2022). MSMEs absorb a large number of workers, which is 97%
of the absorption capacity of the business world in 2020 (Marlinah, 2020). The large number
of MSMEs is directly proportional to the number of jobs in Indonesia so that MSMEs have a
large share in employment and can collect up to 60.4% of the total investment (Muhazir et al.,
2021). However, the achievements were degraded by the emergence of COVID-19 since 2020.
In 2020, various business sectors were negatively affected by the COVID-19 pandemic. It
is increasingly felt in the domestic economy, especially in terms of consumption, corporations,
the financial sector and MSMEs, one of which is the food catering business (Lal et al., 2020;
Rochayati et al., 2021). Many MSMEs have gone out of business due to restrictions on
community activities during the pandemic, thus affecting income and decreasing business
turnover (Alfin, 2021). However, from several business sectors, the food and beverage industry
is quite able to survive the pandemic period (Rosita, 2020). With digital marketing or online
sales, business actors take advantage of this opportunity to reduce the impact of the COVID-
19 pandemic in the sale of food catering businesses (Kumala & Junaidi, 2020).
The research conducted by Rahadi and Wardiman (2022) formulated a conceptual
framework regarding the topics discussed also in this study. There are several things that are
used as a solution to deal with the decline in marketing during the pandemic, including e-
commerce and digital marketing. In addition, the two also discussed that improving the quality
of products, services, pricing, and CRM (Customer Relationship Marketing) must be improved.
As a conceptual framework, the research has certainly not been applied directly in the field.
Other research relevant to this topic was conducted by Siagian and Cahyono (2021). The
research found that the preparation of a marketing strategy for MSMESs can be formulated by
applying STP (Segmenting, Targeting, Positioning) with supporting factors, namely
promotion, excellent service, customer rewards, affiliation, and social capital. The research, in
most parts, only provides a conceptual framework of solutions to the problems discussed,
although indeed in some parts it states that the application of the conceptual framework is to
the bamboo webbing business.
The two studies above do not discuss the application of strategies to increase MSMEs
marketing in the field of consumption. According to researchers, it is indispensable due to the
drastic decrease in turnover when compared to other sectors. Therefore, this study aims to
determine the marketing strategy of MSMEs carried out by catering entrepreneurs named Mrs.
Endah and Mrs. Yanti, 2 catering entrepreneurs. The reason why researchers use both as
sources of research data is because the consumption sector is one of the most affected by the
pandemic and researchers want to know the impact of the pandemic directly on both.
METHOD
The researchers set this research to be a descriptive qualitative study. The approaches used
in this study are literature review approaches, journal documentation, and interviews. In this
study, the literature review and journals used are the theories that are the basis for the research.
As for the interview, the researchers did it directly with Mrs. Endah and Mrs. Yanti.
Marketing Strategy of MSMEs During the COVID-19 Pandemic Era for Catering Entrepreneurs
1260 Interdisciplinary Social Studies, 1(10), Jul 2022
RESULTS AND DISCUSSION
The COVID-19 outbreak continues to suppress the national economy, especially in terms
of consumption, corporotion, the financial sector, and Small and Medium Enterprises (SMEs).
One of them is a food catering business in one of the businesses of Mrs. Endah and Mrs. Yanti
in Dramaga, Bogor City. The researchers in this case tried to get data by using references from
journals, articles and also direct interviews with the two food catering entrepreneurs.
Based on an interview with Mrs. Endah, the owner of one of the food catering businesses
in Dramaga, Bogor City, her business has experienced a decrease in net profit due to the impact
of COVID-19 which has also hit Indonesia since March 2, 2020. In this case, the author focuses
on taking net profit data within 3 months before the pandemic and also 3 months the COVID-
19 outbreak hit. The implementation of the PSBB (Large-Scale Social Restrictions) regulation
by the government in the community which began as of April 10, 2020, greatly affects various
economic aspects, including food catering. The following is a table of Mrs. Endah's food
catering profit that is biased to look at.
Table 1. Comparison of Net Profit Before and After COVID-19 (Mrs. Endah)
Moon
Before (In Rp)
After (In Rp)
December
1.500.000
January
1.800.000
February
1.400.000
March
1.200.000
April
1.000.000
May
900.000
Source: Researcher's Primary Data
Looking at the comparison of net profit before and after COVID-19 hit, it can be seen that
there is an influence on the amount of net profit income generated by Mrs. Endah.
The food catering business owned by Mrs. Yanti's mother also experienced a decrease in
the amount of net profit due to the impact of the COVID-19 outbreak and the implementation
of PSBB rules by the government. The researchers in this case also took the same data as
before, namely taking net profit data within 3 months before the pandemic and also 3 months
the COVID-19 outbreak hit. Here is a table of food catering profit owned by Mrs. Yanti.
Table 2. Comparison of Net Profit Before and After COVID-19 (Mrs. Yanti)
Moon
Before (In Rp)
After (In Rp)
December
1.200.000
January
1.200.000
February
1.000.000
March
1.100.000
April
900.000
May
700.000
Source: Researcher's Primary Data
Marketing Strategy of MSMEs During the COVID-19 Pandemic Era for Catering Entrepreneurs
1261 Interdisciplinary Social Studies, 1(10), Jul 2022
The COVID-19 outbreak that hit and the PSBB rules implemented in the midst of the
community and the government also affected Mrs. Yanti's food catering business, which can
be clearly seen in the comparison table.
Seeing the existing problems, namely the difference in net profit before and after the
COVID-19, the profit received by Endah's mother and Yanti's mother has decreased, therefore
the author tries to provide solutions so that the catering business of Endah's mother and Yanti's
mother can run smoothly even though it is not as good as before the covid-19, including:
1) Using Digital Advertising: Digital advertising or often abbreviated as digital ads is
biased marketing carried out by Mrs. Endah and Mrs. Yanti by using internet digital
media advertisements with the aim of reaching potential bookers according to the target,
with a wide and fast reach. Internet media ads that are commonly used today such as
Google search engines, Youtube, Facebook, Instagram and so on such as Youtube Ads,
Facebook Ads, Instagram Ads and Google Ads;
2) Benefits of Market Place/E-Commerce: More and more market places are emerging,
providing opportunities for Mrs. Endah and Mrs. Yanti in marketing their food catering
business. By utilizing the market place, of course, it provides the advantage that a wide
network allows the catering business to be more known to many people, so that there
are more potential buyers;
Picture 1. Mrs. Endah’s Catering’s Instagram
Picture 2. Mrs. Yanti’s Catering’s Instagram
Marketing Strategy of MSMEs During the COVID-19 Pandemic Era for Catering Entrepreneurs
1262 Interdisciplinary Social Studies, 1(10), Jul 2022
3) Use attractive product photos: Using attractive photos will certainly make potential
customers of food catering bu ending and Mrs. Yanti more interested, so that they are
more confident that the food catering business offered is quality and healthy;
Picture 3. Catering’s Menus
4) Use hashtags whenever posting food photos on social media: Hashtags (#) needs to be
used when we're playing social media. By using hashtags, of course, everything we post
will come along when people enter the hashtag they are looking for; and
5) Create a regular schedule to post food products: By creating a regular schedule to post
food products, of course, consumers will increasingly see the food that Bu Ending and
Mrs. Yanti promote.
With some of the solutions above, it is hoped that the income and income received by Mrs.
Endah and Mrs. Yanti with their food catering business can increase during the COVID-19
period, or after, although for significant results, more time is still needed.
CONCLUSION
From the existing reality, inevitably catering business owners are required to use other
strategies in marketing their business. Marketing strategies that can be done include using
digital advertising media such as Instagram, Facebook, and Youtube, or using other market
places. This is done because customers do not have to meet and or gather directly at food stalls
but can use delivery services. Thus, the net profit of catering business owners is expected to
increase again.
Catering business owners are required to use other strategies in marketing their business.
Marketing strategies that can be done include using digital advertising media such as
Instagram, Facebook, and Youtube, or by using other market places. This is because customers
do not have to meet and or gather directly at food stalls but can use delivery or delivery services.
Thus, the net profit of catering business owners is expected to increase again.
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