Business Development Strategy on Traditional Coconut Oil ( Lengis Tanusan ) Production during the Covid-19 Outbreak

Covid-19 outbreak leads to various issues in the traditional coconut oil business. A low-level purchasing power, low-level production of the oil, and poor marketing skill contribute to hindrances in running the business. This study aimed to investigate the business development strategy of traditional coconut oil during the Covid-19 outbreak in Sulang Village. Eight key informants participated in this study. Data was collected through the in-depth interview, documentation, and observation and analyzed through the SWOT dan QSPM analysis. Results revealed that the internal factors that play as the strength factor in this business were the unique savory taste of the traditional coconut oil, while the weakness factor was the low production of the oil during the Covid-19 outbreak. The external factor identified as the opportunity in this business was its close location to Paksebali and Pasek Gunaksa market. The threat factor found was the healthy lifestyle that tended to recommend a low fatty food diet. According to the alternative strategy analysis, there were 11 strategies found in developing and maintaining the traditional coconut oil business in Sulang Village. Consignments with merchants around Tukad Yeh Unda was selected as the priority strategy Strategies listed in this study expected to be a recommendation for the traditional coconut oil


INTRODUCTION
Coconut agribusiness development presented a significant contribution in improving productivity and income among the farmers. Coconut as an agricultural commodity in Indonesia also contributes a vital role in national economic growth by providing employment, raw materials for domestic industries, and ready-to-eat food (Damanik, 2007). Coconut commodity in Indonesia commonly processed to coconut oil. For more than a thousand years, the human population that lived in a tropical climate has been using coconut oil as an edible oil. An example of a well-known home industry of traditional coconut oil in Indonesia was situated in Tamerenja Village, Donggala Regency, Central Sulawesi Province. Yusuf et al. (2018) stated that there were several problems addressed in this home-industry: 1) poor level of knowledge, skill, and understanding of the appropriate technology, 2) long production duration, 3) short expiration date, and 4) poor skill in book-keeping the profit of the business. The traditional coconut oil maker group from Lumbu Mamara and Posso Village also faced similar problems. Hattab & Palu (2019) found that the common issues encountered by the traditional coconut oil maker in Lumbu Mamara Village were the short durability of the coconut oil and the long duration of production. They also found that there was a limited number of economic derivative products produced from the oil. Azis et al. (2020) in their study found that unappealing packaging and no laboratory test conducted to list the chemical composition of the traditional coconut oil produced by the local business as the problem encountered in running the business.
As a high-quality coconut commodity supplier in Bali Province, Klungkung Regency is an area that has a high potential to be developed as a traditional coconut oil production center in Bali Province. Traditional coconut oil produces in this area has a unique savory taste and could be stored and used for a maximum of three months after its production. Their long expiration period considered as their superior qualities. The most traditional coconut oil produced outside of Bali is only lasts for two weeks. Hanoatubun (2020) also stated that the Covid-19 outbreak causes massive effects on the national economy sector. These effects also affected the traditional coconut oil business in Sulang Village, Klungkung Regency. The most business had been operating for years and facing numerous issues during the outbreak. The low purchasing power, low level of production volume, poor marketing skill, and other issues highly contributed to the significant setbacks of the business. If the situation does not properly address, this traditional coconut oil business threatened to face bankruptcy. Whereas high-quality coconut commodities production in Sulang Village, Dawan District, Klungkung Regency is constantly high, adequate development strategy would provide vital aids in maintaining the business during the Covid-19 outbreak.
A traditional coconut oil business development strategy is necessary to maintain the business during the Covid-19 outbreak. The strategy formulation begins with internal and external factor identification of the traditional coconut oil business in Sulang Village, Dawan District, Klungkung Regency. The internal factor and external factor analysis consisted of strength and weakness, opportunity and threat, respectively.
Studies related to traditional coconut oil (lengis tanusan) production rarely conducted. Studies about the VCO (Virgin Coconut Oil), which had a distinctive characteristic from the traditional coconut oil, appeared to be more appealing for most researchers. Hence, this study would explore the traditional coconut oil (lengis tanusan) business development strategy during the Covid-19 outbreak. We expects to be able to support and motivate the traditional coconut oil business during the outbreak through this study. This study aimed to: 1) assess the internal factors affected the traditional coconut oil production in Sulang Village, 2) asses the external factors that affected the traditional coconut oil production in Sulang Village, 3) asses the development strategy for traditional coconut oil production in Sulang Village, and 4) assess the priority strategy for traditional coconut oil production in Sulang Village.

RESEARCH METHODS
This study conducted in Sulang Village, Dawan District, Klungkung Regency, Bali Province. The study process, including location survey, data collection, and script-writing process, done in four months from November 2020 to February 2021. Purposive sampling technique, a subjective method to select a study population, applied to decide the study location. Sulang village chosen as the study location due to several considerations: the existence of traditional coconut oil's small and medium enterprises in generating wellness among the community member, the potency of the coconut commodity produced by the agricultural sector in the village, and its close location to Tukad Yeh Unda tourism site.
Eight key-informants involved in this study. Suyanto (2005) stated that keyinformants refer to the knowledgeable individual who expected to contribute significant information required in a study. The purposive sampling technique was also applied to pick study key-informants. Key informants involved in this study were I Nengah Mudiasa (Administrative Head of Sulang Village), I Wayan Lugra (Office Secretary of Sulang Village), I Wayan Rasta and Ni Wayan Sudiani (traditional coconut oil business owner), I Wayan Arsana and Ni Nengah Simpen (coconut peeler), Ni Nengah Mudet and Ni Nengah Karniti (coconut traditional oil maker).
Qualitative and quantitative data from the primary and secondary data sources enrolled in this study. The study method applied was an in-depth interview, observation, and documentation. An in-depth interview defined as a study method conducted to gather information required for a study by a face-to-face interview session with respondents who engaged in a specific social life. Yuni Erawati et al. (2018) stated that observation is a direct examination process on an object. While documentation is a method carried to obtain information and data through archives, books, documents, statistics, and pictures.
The data analysis method applied to answer each aim of the study was different. The first aim (internal factor analysis) analyzed by using internal SWOT factor analysis. The strength and weakness as the internal factor in traditional coconut oil production in Sulang Village initially identified before the internal factor analysis.
The second aim (external factor analysis) addressed by using external SWOT factor analysis. The opportunity and threat as the external factor in the traditional coconut oil production in Sulang Village initially identified before the external factor analysis.
The third aim of the study (business development strategy of traditional coconut oil production) analyzed by using the SWOT matrix (IFAS and EFAS). This type of analysis considered as a part of qualitative analysis. Internal and external factors identified also significantly affected the result of this analysis. The SWOT matrix analysis classified into four parts: S-O, W-O, S-T, and W-T strategy.
The fourth aim (priority strategy) addressed by the Quantitative Strategic Planning (QSPM) matrix. This matrix assists an organization in listing alternative plans for a problem. QSPM method organizes the best strategy to be applied. QSPM Matrix obtained by multiplying the mean of the weight from the internal and the external factor in the traditional coconut oil production with the attractiveness value (AS). This calculation presented the total attractiveness value (TAS).

Internal Factor Identification
Internal factor identification consisted of the strength and weakness of traditional coconut oil business. All key informants participated in the internal factor identification.

Table 1. Strength Factor Analysis Indicators Strength Factors
Strengths 1. Traditional coconut oil had a unique savory flavor. 2. Traditional coconut oil had a unique and strong scent.
3. It can be stored and used for a maximum of three months after produced. 4. It had plenty of beneficial effects for a healthier life and aesthetic aspect. 5. Traditional coconut oil businesses had been running for years and inherited as family businesses. Source: Primary Data Analysis, 2020. Table 1 reveals five strength factors that potentially support the development strategy of the coconut oil business during the Covid-19 outbreak in Sulang Village, Dawan District, Klungkung Regency. The strength factors provided vital information to deal with weaknesses and threats encountered during traditional coconut oil production. Findings in a study conducted by Yusuf et al. (2018) was contrary with the current study result. They found that traditional coconut oil could only be stored and used for two to three weeks. It usually became rancid if it had stored for more than three weeks. But a study done by Karouw (2013) found similar benefits of traditional coconut oil.

Table 2. Weakness Factor Analysis Indicators
Weakness Factors Weakness 1. Most of the raw materials came from outside Sulang Village. 2. The raw material was relatively hard to found during the Covid-19 outbreak. 3. During the pandemic, the raw material used to manufacture traditional coconut oil was expensive. 4. The price was higher in comparison with the ordinary cooking oil. 5. No brand established as a trademark for the traditional coconut oil in Sulang Village. 6. No organization established to support and facilitate the traditional coconut oil production activity in Sulang Village. 7. Poor marketing skills and low promotional activity. 8. Limitation on the traditional coconut oil production equipment. 9. The low number of traditional coconut oil production during the Covid-19 outbreak. 10. Packaged in a 600 ml plastic bottle. 11. Dominated by female workers. 12. Dominated by elderly workers. Source: Primary data analysis, 2020. Table 2 shows 12 weakness factors of the traditional coconut oil business in Sulang Village. These factors highly potential inhibiting the development of the traditional coconut oil business in Sulang Village. These results were parallel with a study conducted by Hattab & Palu (2019). They identified some issues in a group of traditional coconut oil makers in Lumbu Mamara Village: conventional production equipment, unappealing packaging, and low marketing skill. Furthermore, Nasir (2018) stated that the farmer had poor skill in producing the agricultural commodity. This situation led to the low production of the traditional coconut oil in Sulang Village during the Covid-19 outbreak. Hamka (2012) also stated that the age factor would significantly affect the ability to adopt new technology. Older age resulted in lower skills in accepting innovation. This finding was relevant to the current study. The majority of workers in the business were relatively old, hence they probably had poor skill in adopting new technology.

External Factor Identification
External factor identification consisted of the opportunity and threat of traditional coconut oil business. All key informants participated in the internal factor identification.  Table 3 reveals three opportunity factors that promoted the traditional coconut oil production in Sulang Village, Dawan District, Klungkung Regency. These factors provided essential supports to manage the weakness and threat encountered in the traditional coconut oil business.  Table 4 shows five threat factors that potentially inhibit the traditional coconut oil production in Sulang Village. Effendi et al. (2017) investigated similar threat factor in the chocolate business in the previous study. A threat identified in this business was the introduction of similar products by the competitor.

Alternative Strategy on Traditional Coconut Oil Business in Sulang Village
After the internal factors (strength and weakness) and external factors (weakness and threat) identification, an IFAS and EFAS matrix analysis conducted to evaluate these internal and external factors. Results of the analysis presented in the Tables below.  Analysis revealed that the internal factors of traditional coconut oil business positioned in a secure point. The mean of internal factor strategic score was 3.310. This score indicated that the coconut oil production activity had a strong position and high potential in managing its weaknesses.

5.
Ordinary cooking oil was less expensive in comparison with traditional coconut oil. The introduction of similar traditional coconut oil from outside of Subang Village. Healthy lifestyle trend, especially in reducing oil consumption in everyday diet. Younger generation poor interest in participating in the traditional coconut oil business. The change of traditional coconut oil community purchasing power. The mean of external factor strategic score was 3.014. This score indicated that the coconut oil production activity in Sulang Village had a strong position.
The internal and external (I-E) analysis outcome was the result of the IFAS and EFAS matrix calculation. According to the calculation, the total score of the internal and external factors was 3.310 and 3.014, respectively. These scores determined the category of the position of the traditional coconut oil business in Sulang Village. Figure 1  1. Consignment with merchants in Tukad Yeh Unda tourism site to improve product promotion and marketing activity. The consignment will help the product in reaching a broader range of product markets. Sulang Village has no specialized shop to sell traditional coconut oil produced in Sulang Village. Tukad Yeh Unda could be a very beneficial place to sell the oil products, therefore, Wayan Rasta as the administrative head of the Sulang Village could place some of the oil products in some merchants or built a shop around Tukad Yeh Unda to sell the oil products.

Consignment with merchants in Pasekbali and
Pasek Gunaksa market to improve product promotion and marketing activity. Consignment defined as a sale system done by putting some products in different shops. This practice frequently found among big merchants. They usually place their product in the smaller shop as a part of their marketing strategy. Strategic market access in Sulang Village was beneficial in extending a broader range of markets for the traditional coconut oil. I Wayan Rasta could place some oil products in a grocery shop in the market to introduce the products to the consumer. 3. Traditional coconut oil quality improvement. This finding was similar to a study done by Ika Fatmawati et al. (2009) that revealed that the quality of VCO should be improved, especially from the pureness aspect. The traditional coconut oil quality also needs to be improved. Traditional coconut oil is an essential ingredient for some local foods, such as sambal matah and ayam betutu. High-quality traditional coconut oil will produce a unique savory taste in comparison with ordinary coconut oil.

B. W-O (Weaknesses-Opportunities) Strategy
1. Encouraging the local community to plant coconut trees in meeting the demand of the raw material of the traditional coconut oil business. Coconut commodity highly required for the traditional coconut oil production. This situation was also an opportunity to promote the coconut commodity agricultural potential in Sulang Village. 2. Establishing a brand for traditional coconut oil to create a more powerful impression of the product in the market. I Wayan Rasta, one of the key informants, stated that legal permission for the traditional coconut oil trademark had been issued by the government. No further work done to manage the establishment of the brand in the market during the outbreak. Therefore, the brand establishment required to execute quickly in increasing public interest in purchasing the product. 3. Digital marketing skills improvement. Digital marketing skills are highly required, especially during the pandemic. This finding was parallel with a study done by Sinaga et al. (2020) that found the promotion and marketing effort for Kusamba salt required to be improved by social media platforms, such as Facebook and Instagram. I Wayan Rasta, as one of the traditional coconut oil owners, stated that he had made an account in Facebook and Instagram platform specialized to promote his product in the online platform. 4. Encouraging the younger generation in Sulang Village to participate in the traditional coconut oil business. The potency and business prospect need to be elaborated adequately since Sulang Village had a superior coconut commodity that supported the business. C. S-T (Strengths-Threats) Strategy 1. Encouraging the local community to buy and consume their own products. A better understanding of supporting the local product is significant in maintaining sustainable growth of the local business and promote their local product in the market. Embracing the local product also produced higher chance of the product to compete with similar oil product produced outside of Sulang Village. 2. Information dissemination related to the effect of traditional coconut oil.
Traditional coconut oil (lengis tanusan) known for its advantageous effect on health and beauty. This finding was parallel with a study conducted by Barlina & Torar (2009) that found traditional coconut oil regularly applicated in the aesthetic field. A growing number of communities who aware of its beneficial effect resulted in higher demand for the oil. 1. W-T (Weaknesses-Threats) Strategy 1. Strengthening a good relationship with the raw material distributor, especially those who came from outside Sulang Village. According to key informants, most of the raw material produced by Karangasem Regency. The production of coconut commodities in Sulang Village had not able to meet the demand for traditional coconut oil production. Building a respectful relationship with the distributor could lead to a sustainable stock of coconut commodity as the raw material of the oil. 2. Identify another distributor who sold the coconut commodity a cheaper price.
During the study, the raw material of the oil was mostly distributed by Karangasem Regency. I Wayan Rasta, one of the owners of the traditional coconut oil business, stated that he had been trying to find cheaper coconut commodity distributors in Bali. Tabanan, Buleleng, and Jembrana Regency assumed as the area that provided the cheaper price of coconut commodity.

Priority Strategy of Traditional Coconut Oil Business Development in Sulang Village
QSPM Matrix obtained by multiplying the mean of the weight from the internal and the external factor in the traditional coconut oil production with the attractiveness value (AS). This calculation presented the total attractiveness value (TAS). The strategy with the highest score of TAS was the most favored recommendation for the business. QSPM applied to select the best strategy to be performed. 11. Identify another distributor who sold coconut commodity with cheaper prices.

11
Source: Primary Data Analysis, 2020. According to the TAS calculation, the highest score obtained by the consignment strategy, with a total score of 6.324. This strategy directed to improve the promotion and marketing activity through the consignments with merchants in the Tukad Yeh Unda tourism site. This strategy favored due to the close location of the village to the Tukad Yeh Unda tourism site. This promotional activity done by placing some products on merchants around the Tukah Yeh Unda or building a small shop specialized in selling the traditional coconut oil to extend the marketing area. This finding was contrary to Azis et al. (2020) that emphasizing online marketing through online platforms such as Facebook and Tokopedia to promote the product.

CONCLUSION
Based on the result and discussion section, we concluded that the strength of the traditional coconut oil business on the internal factors was their unique savory taste. Their low production volume during the Covid-19 outbreak found as the weakness. The opportunity in the external factor identified was their close location to Paksebali and Pasek Gunaksa market. Healthy lifestyle trend, especially the recommendation to reduce oil consumption in the daily diet, became a threat for the business. According to the SWOT matrix, there were 11 alternative strategies arranged to develop and improve the traditional coconut oil business in Sulang Village. Consignments with merchants around Tukad Yeh Unda selected as the priority strategy to maintain this business.

RECOMMENDATION
We suggest the traditional coconut oil in Sulang Village owner to apply the strategies listed in the study in maintaining and developing their business, especially during the Covid-19 outbreak. Brands for traditional coconut oil also need to be established to strengthen the impression of the product in the market. The current study findings provide information about the traditional coconut oil business in Sulang Village for similar studies in the future. Future investigation about a similar type of business required to assess more sources and references related to traditional coconut oil production process.