Marketing Innovation in Industry 4.0: Experiential Marketing

Practices in the Culinary Industry

Daniel Hermawan

Business Administration Department, Parahyangan Catholic University, Ciumbuleuit 94 Street, Bandung, Indonesia

Keywords: Marketing Innovation, Industry 4.0., Experiential Marketing, Culinary, Social Media

Abstract: The increase of social media users has made Indonesian people experience changes in terms of consuming

products. This phenomenon also affects the marketing strategy of the culinary industry in Bandung to adjust

with millennial consumers. Capturing food before eating, posting photos with interesting captions, and

recording unique moments with friends and family in culinary places became a common sight that was seen

in several culinary places in Bandung. A culinary place that was originally focused on the taste and quality of

food now turned into a selfie spot that has its theme and brings a new experience to consumers. Through this

research, the author wants to know (1) how marketing innovations designed by culinary owners? (2) How do

consumers assess marketing innovations carried out by culinary places? This research uses qualitative

methods, namely using case studies and interviews with culinary owners and consumers in 6 Instagramable

restaurants in Bandung. The research found that marketing innovation is a useful tool in providing a

competitive advantage for the culinary industry. Consumers assess that marketing innovation carried out by

the culinary industry is good, but must be consistent with other factors, such as price, atmosphere,

maintenance of facilities, and quality of food offered

1 INTRODUCTION

The increasing number of internet users in Indonesia

is an opportunity, as well as a challenge for

businesses, especially those engaged in the culinary

industry. Based on data from the Association of

Indonesian Internet Service Providers (APJII), the

number of internet users in Indonesia reached 171.17

million or around 64.8%. The majority of Indonesian

people who access the internet come from the age of

15-19 years. Therefore, businesses in the culinary

field must adjust the content to suit the tastes and

behavior of consumers (Pratomo, 2019).

The Bandung brand, as a culinary city also offers

promising opportunities for culinary businesses. They

are evidenced by the growth in demand for culinary

products in Bandung, which exceeds 10 percent per

year. This also makes the culinary industry

competition in the city of Bandung increasingly

stringent. No wonder many culinary industries are

closed because they cannot compete with other

culinary businesses. Therefore, culinary businesses

must provide added value in the products or services

offered (Lukihardianti, 2018).

Along with the increasing number of millennial

consumers in Indonesia, some culinary

businesspeople capture this opportunity by providing

a culinary place that is current and in accordance with

consumer tastes. The existence of selfie photo spots,

antique decorations in culinary places, "Insta-

friendly" culinary design, and attractive food

arrangements are expected to be able to attract

millennial consumers who make culinary as a means

to establish networking with friends or colleagues

(Sebastiá Company, 2019).

Not just turning culinary spots into photo spots,

culinary businesses also do marketing innovations,

ranging from promotions via social media,

promotions through buzzers or selebgram (Instagram

celebrities) in providing reviews of the culinary

presented, as well as providing discounts for

consumers who capture their moments in culinary

venues on social media (Wargajogja.net, 2019). It is

hoped that the marketing innovation step carried out

can attract consumers to come and taste the

experiences that are served at the culinary venue.

Through this paper, the author is interested in

observing (1) how marketing innovations designed by

Hermawan, D.

Marketing Innovation in Industry 4.0: Experiential Marketing Practices in the Culinary Industry.

DOI: 10.5220/0009958400430048

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 43-48

ISBN: 978-989-758-471-8

culinary owners? (2) how do consumers assess

marketing innovations carried out by culinary places?

2 LITERATURE REVIEW

2.1 Marketing Innovation

Marketing innovation can be defined as the

implementation of new marketing methods involving

significant changes to a firm’s marketing mix from

product design or packaging, product placement,

product promotion, to product pricing (Joueid &

Coenders, 2018).

Marketing innovation is essential for a culinary

business to do in winning the competition in industry

4.0. The bargaining power of consumers is

increasingly high with the number of culinary choices

that can be found in gadgets, making culinary

businesses have to be able to provide competitive

advantages that cannot be found in other culinary

venues. Therefore, the way to deliver products,

prices, prices, and promotions must also be adjusted

to the target market (Agustina, 2018).

The objectives of marketing innovation are (1)

identify unmet and even unknown customer needs;

(2) understand the deep-seated drivers of perception

and behavior that are relevant to a product’s appeal;

(3) engage with customers through use cases and

benefits instead of functionalities and features; (4)

develop the entire customer experience ecosystem;

(5) use a go-to-market strategy that is appropriate for

the innovation and its customers (Yohn, 2019).

Marketing innovation is expected to be a bridge

for culinary business people and consumers in

designing and enjoying experiences in consuming the

products or services offered.

2.2 Experiential Marketing

Experiential marketing is a media mix promotional

discipline used to encourage sensual interaction and

physical fascination of the consumer into brands

(goods and services). Experiential marketing

provides real experiences to the customer with brands

(goods and services) that drive sales and increase

brand image and brand awareness among the

consumers (Sharma & Sharma, 2011).

The Fantasies, Feelings, and Fun (3Fs) principles

are the goals and criteria for successful consumption

in the experiential view. Experiential marketing is

also used to build relationships; to raise awareness; to

increase loyalty; to establish relevance; to encourage

interaction and product trials; to create memories; to

stimulate positive word of mouth; to change the mind

of dissatisfied customers; to create product desire; to

verify the target audience; to increase return on

marketing investment; to stimulate purchase; to guide

preferences; to develop positive perception; to show

off its attributes (Datta, 2017).

Experiential marketing is a process to identify and

satisfy the needs of consumers and profitable

aspirations, involving consumers through two-way

communication, which brings the brand personality to

life and add value to the target audience. Two-way

communication and interactive involvement are the

keys to create an impressive experience that triggers

word of mouth and changes consumers to become

brand supporters and consumers' loyalty towards a

brand (Sugiyarti & Hendar, 2017).

3 ANALYSIS

Through this paper, the author using a qualitative

method. Qualitative methods are used to find out the

truth of the data, respondents' feelings, social

interactions, and social symptoms through interviews

with respondents directly.

Author analyses 6 restaurants that are classified as

"Insta-friendly" in Bandung and interview the reasons

why consumers come to these culinary places.

Table 1. Instagramable Restaurants’ Profile

Name

Inspiration

Promotion

Tools

Establis

hed

Pickinic

k Kaliki

Seeing the

phenomenon of

teenagers who

like selfies

Instagram

2018

One

Eighty

Coffee

and

Music

Beachside

restaurant

Instagram,

Facebook,

Twitter

2016

The

Parlor

Young people

who like

Instagramable

spots

Instagram

2017

Goldstar

360

Ancient cave

Instagram,

Blog,

Brosur

2017

Taman

Kardus

Exchange

students to

Taiwan and see

the park with a

cardboard

concept

Instagram,

website

2017

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

Love

Unicorn

Café

Many school

children around

the restaurant,

the character of

My Little Pony

Instagram

2018

(1) How marketing innovations designed by

culinary owners?

Marketing innovations designed by culinary owners

are adjusted to the target market. Pickinick Kaliki

designed a comfortable coffee shop for young people

with an interesting place to take selfies. The

inspiration to make Pickinick Kaliki itself arises from

the fondness of teenagers who upload their photos to

social media. Besides, Pickinick Kaliki also

prioritizes the presentation of a unique coffee to

attract consumers. Through a unique selfie photo

taking place, consumers will feel free to spread

Pickinick Kaliki to social media and hope it can

become viral as the marketing of Words of Mouth.

Figure 1. Pickinick Kaliki (Isti, 2018)

One Eighty Coffee and Music gives the

characteristics of a particular pool area for consumers

who want to try the sensation of eating on the water,

such as a restaurant on the beach. One Eighty Coffee

and Music make marketing innovation in the

existence of live music every Sunday to attract

consumers. Because of experiential marketing

offered in the form of the sensation of enjoying eating

on the water, consumers of One Eighty Coffee and

Music reach 200 - 400 per day on weekdays and more

than 800 people on weekends.

Figure 2. One Eighty Coffee and Music

(PergiKuliner.com, 2019)

The phenomenon of young people who hang out

while working on the task caught by the owner of The

Parlor to create a friendly café for students. The

Parlor owner designed a café with an art theme, so it

was interesting to be a spot to take photos. The

marketing innovation that has been made is a snack

bonus given to consumers who upload photos at The

Parlor and special discounts for students. Besides,

The Parlor also provides a comfortable culinary place

to relax and discuss with friends.

Figure 3. The Parlor (LAzone.id, 2017)

Goldstar 360 takes the theme of ancient caves

with various ornaments and properties made with

Greek nuances. The existence of Goldstar 360 around

Maranatha Christian University makes café owners

targeting students as the main target market. Public

interest in taking photos in "Insta-friendly" spots is

one of the important factors in consumer visits.

People who come want to feel the atmosphere of

eating while in ancient caves.

Marketing Innovation in Industry 4.0: Experiential Marketing Practices in the Culinary Industry

Figure 4. Goldstar 360 (Firdaus, 2018)

The exchange of students to Taiwan seems to

inspire the owner of Taman Kardus in designing the

café concept with the central theme of cardboard. The

division of themes between indoor and outdoor has

also become a unique feature for Taman Kardus. The

indoor section, the owner of Taman Kardus designs

with a cardboard theme, while for outdoor is designed

with a view of pine forests and pillows for relaxing.

It is expected that people who like to take pictures can

take advantage of existing photo spots in Taman

Kardus optimally.

Figure 5. Taman Kardus (Maulidia, 2018)

The My Little Pony character inspires love

Unicorn Café in the café's concept and design. The

walls are designed in pink, the number of ornaments

and dolls in each seat in the Love Unicorn Café, as

well as the striking and bright decoration colors, are

the main attraction for consumers to capture the

moments in the Love Unicorn Café. The existence of

a café near schools is also one of the factors why

restaurant owners take the theme My Little Pony.

Love Unicorn Café has also been covered in Si

Unyil's program on Trans TV because of the unique

place designed by the café owner.

Figure 6. Love Unicorn Café (Susanti, 2018)

(2) How do consumers assess marketing

innovations carried out by culinary places?

According to consumers, the concept and design of a

place that is "Insta-friendly" are not enough, but also

needs to be supported by the atmosphere, food

quality, and prices equal with the experience gained.

Based on interviews conducted at Pickinick Kaliki,

consumers consider that friends and social media are

the main factors that encourage consumers to come to

Pickinick Kaliki. The price of food that is worth the

experience gained makes consumers feel at home in

Pickinick Kaliki for 2-3 hours, and usually,

consumers visit in the afternoon. Besides, the unique

photo spots on Pickinick Kaliki encourage consumers

to post photos while on Pickinick Kaliki.

The unique, attractive, and Instagramable pool

concept is several factors that determine consumer

visits to One Eighty Coffee and Music. Generally,

consumers get information about One Eighty Coffee

and Music from friends and social media, especially

from the InstaStory feature that is shared with friends.

Consumers usually spend 1-2 hours at One Eighty

Coffee and Music, and the usual visit time is in the

afternoon or after going home from college.

Consumers usually capture the sensation of bathing in

this pool in the InstaStory feature. Customers not only

enjoy the food and drinks that are served but also

enjoy the pleasure of soaking their feet on the pool,

which creates its own experience for consumers.

Viral café aspect is also an important factor for

consumers to visit The Parlor. The existence of

attractive photo spots and a comfortable place to

gather with friends is a reason for consumers to visit

The Parlor. The prices of food and beverages are

relatively high, complained by consumers, especially

for students. Motivation "to be the update one" is also

one of the reasons consumers visit The Parlor, which

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

is identical to art. Consumers spend an average of 1-

2 hours while at The Parlor. The experience of

enjoying art and capturing moments with social

media is a pleasure for consumers.

The uniqueness of Goldstar 360 to take pictures

and enjoy the atmosphere of ancient caves became an

exciting experience for consumers to taste the

atmosphere that is unique and different from usual.

Besides, information obtained from friends and social

media is a factor that significantly influences

consumers to visit Goldstar 360. The average

consumer spends 2-3 hours enjoying the atmosphere

and experience offered at Goldstar 360. The sensation

of being in an ancient cave becomes a marketing

innovation that gives consumers a unique experience.

The combination of the concept of Taman Kardus

with the nuances of nature becomes an experience

that is felt by consumers is very memorable when in

Taman Kardus. In general, consumers do not enjoy

the culinary presented, but rather the atmosphere and

beautiful scenery offered by Taman Kardus. The

beauty of photo spots in Taman Kardus makes

consumers interested in sharing their experiences

through social media. Consumers can spend up to 2

hours while in the Taman Kardus.

Enjoying quality time with children is one of the

dominant factors that can be found from consumers

in the Love Unicorn Café. The experience of playing

dolls and eating with children is a specialized

experience that is obtained by consumers when they

are in the Love Unicorn Café. The concept of My

Little Pony makes consumers who are, on average,

young parents happy to photograph their children

with various interiors and properties in Love Unicorn

Café. Consumers can spend between 2 - 3 hours while

in Love Unicorn Café, and the average consumer

comes during the day while accompanying children

for lunch.

Through interviews and observations conducted

to consumers in 6 "Insta-friendly" restaurants, it can

be concluded that the marketing innovations carried

out must have a clear storyline with the experience

that will be received by consumers. Creating

marketing innovations is not just adding interesting

atmosphere, decoration, and property, but also a

holistic process of value-added chains created by

culinary businesses, to provide a memorable and

enjoyable experience, both in terms of food quality,

comfortable atmosphere, and excellent service.

4 RESULT AND DISCUSSION

Based on the results of observations and interviews,

it can be concluded that marketing innovation plays a

very important role in providing added value to every

business person, especially in the culinary industry.

The use of social media as promotional media is very

effective in attracting consumer interest, especially

millennial consumers. Besides, the presence of spots

that take unique photos, attractive decorations, and

properties that are "out of the box" is the main

attraction for consumers to capture their moments.

Indirectly, experiential marketing experienced by

consumers becomes a free promotion method given

by consumers to their friends, family, and colleagues

from their social media account (e-Words of Mouth).

Experiential marketing has become a vital

business element to consider because millennial

consumers are looking for a new experience in

consumer products today. Culinary business people

can explore this consumer experience by inserting

marketing innovations in the various atmosphere,

decoration, and properties offered. Besides, the way

of serving food, food arrangement, and employee’

costumes can provide a specialized experience for

consumers, which adding value to the culinary owner

that implements it.

For consumers, the existence of an "Insta-

friendly" concept restaurant is not only enough to

present an exciting spot to take photos, but also must

be supported by the atmosphere, food quality, service

quality, and affordable prices. Consumers who come

in a long time in a restaurant can also be used by the

owner to increase the number of purchases per

consumer with attractive offers so that the duration of

consumer visits is also directly proportional to the

income obtained by culinary business owners.

5 CONCLUSIONS AND FUTURE

RESEARCH

The author can conclude that Instagramable

restaurant can be a promising business as long as it is

supported by maintaining facilities and regularly

updating photo spots. Restaurant owners must be able

to attract the tastes of consumers to come and visit

back to culinary places with various kinds of

experiences that will be obtained by consumers, both

in terms of services obtained, food quality, and

professional handling when consumers come during

peak hours, so it does not cause disappointment for

consumers who come.

Marketing Innovation in Industry 4.0: Experiential Marketing Practices in the Culinary Industry

In addition, experiential marketing that can be

done by Instagramable restaurant owners is to provide

renewal of the experience gained by consumers with

the theme of food or drink in a particular month. In

addition, the use of costumes, greetings, and

decorations can be modified periodically to provide

refreshment, especially for customers who have

visited more than 2 times to a culinary place.

Marketing innovations made can also be enhanced by

various interesting events or events that can invite

consumer participation, both in the form of giveaway

and testimonials, to increase public awareness of the

existence of the Instagramable restaurant.

This research is limited to the scope of

Instagramable restaurants in Bandung. Further

research that can be done related to this research is to

see how Instagramable restaurants can maintain

customer loyalty amid the many Instagramable

restaurants in the city of Bandung. Considering this

research was carried out within the scope of Bandung,

further research was carried out in other cities or on a

broader scale, for example, West Java or Indonesia.

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