Dapur Ibu Went Online

DAPUR IBU WENT ONLINE
DIFI launched the http://www.dapur-ibu.biz on 23rd May 2012 (see Exhibit 1). Prior to
launching the website, the product has increased on demand since starting from home-based
manufacturing then to a small shop lot. Since relocation, the products width was developed
significantly and DIFI has introduce another 2 products in order to set up a website as a
platform for promotion and discovery. The main reason on launching the website is to provide
a discovery platform for a potential buyer in knowing the DIFI product as process of awareness.
The process of ordering and buying is still using Facebook and Whatsapp where the current
customer need to send a personal message and every single order is threated individually.
In order to expand the effectiveness on using Internet as marketing strategy, DIFI has tried to
raise a fund to provide e-commerce facility for the business but unfortunately it failed. Based
on the planning, the resources gain will be invested to bring in expertise in digital marketing
and, build a team and set up more advanced ecommerce features in the website. The features
such as content management abilities, an easy-to-use checkout, reporting tools, payment
gateway, email marketing integration and data analytic of the current customer. By using the
advanced features the potential of expanding the business and product width can be achieve.
But due to the unsuccessful of raising the fund, DIFI decided just to rely on the simple website
for just now.
By November 2012, DIFI had 300 new customer and the company has reached cities outside
of Sg. Petani and could deliver products to places outside of Malaysia. In just one year of the
website operations, the production grew by between 130 percent and 150 percent and
continued to grow. By the end of 2013, it was selling close to 500 units per month, out of which
almost 50 percent were sold by the shop. DIFI explained, “The website has help the business
to penetrate a new market and provide sufficient platform for product discovery. It is
unfortunate for us not able to raise fund for the ecommerce because it will help us to reach
more than triple”.
A RUGGED TRAIL
The main challenges that DIFI encountered in its early days was the obtaining capital for buying
machine and equipment. Iznie stated “It is true that the source of capital is one of the
important factors for the entrepreneur leading to the formation of a business or the existence
of an entrepreneurial career. If nothing capital or lack of capital or funds will be a form of
problem or constraint to entrepreneurs”. Although DIFI had experience in “sambal belacan”
manufacturing, the challenge was to manufacture the product in big scale, and it needed
suitable machine that can process the chilies.
Apart from that, another challenge was product development. Although DIFI has entered the
manufacturing business in a past years, the challenge was to build product packaging that
reflected the brand in the best possible way. Izni explained, “We fully realized that ecommerce
business should be treated as a retail. However, ecommerce required portrayal of the product
which mean how the product should be promoted online and how the website should be
designed”.
Also, finding the right human resources is another difficult task. Technology and marketing are
areas where Iznie has no expertise and experience. This is new to him and requires outside
expertise by bringing in experts from outside organizations to act as consultants to assist in the
development of ecommerce and marketing models. This effort will enable them to grow their
business effectively. Iznie recruited digital marketing and technology professionals, and her
main focus for the first three months was to build a robust website. However, due to
unsuccessful fundraising efforts, the venture has been discontinued to this day.
Finally, there are challenges to selling food products online, which essentially require a taste
and smell approach, in a virtual interface. Recognizing this issue, Iznie said,
All e-commerce businesses face this challenge, except for certain categories of products
such as cosmetics. Therefore, products with higher utility values than impulse values
tend to sell more online. Clothing is a unique case. This is traditionally a hedonic product
associated with experience. Unfortunately, it is still considered a utility product in
Malaysia as more than 69 per cent of garments sold in Malaysia are for everyday use. So,
on the one hand, we face the challenge of increasing its hedonic value. Instead, we face
the challenge of selling them online, which is difficult if we are to increase the hedonic
value of the product.
THE PRODUCTS
DIFI has three camel products - "Sambal Belacan", dried fish and anchovies (see Exhibit 2). The
prediction style and nutrition trends that consumers will use are the key strategies in the
company's product development. The main inspiration for product development comes from
family recipes passed down through generations. Iznie stated,
We follow the approach of any brand that produces similar products in the Malaysian
market. Although we offer customers the same product, our objective is to offer
products that have different tastes and attractiveness. This has been beneficial to us and
is essentially a unique product, which has made us a strong brand not only online but
also offline.
Commenting more on managing products online, Behal says, "Being in an e-commerce

business gives you the opportunity to attract new buyers and promote the product more
broadly”.
Iznie owns a factory in Sungai Petani and has adding a sales center in Kuala Lumpur to enhance
the sale and storage of stock for markets in central and southern Malaysia. DIFI generates 55
per cent of sales from three states, Federal Territories, Selangor and Perak, and attracts
between 18 per cent and 20 per cent of buyers are male buyers for families. To encourage and
meet this trend, Iznie also plans to launch a separate section of the website that will help men
when buying these products.
THE BUYING EXPERIENCE
Iznie admits that getting customers is not easy. Most customers find out the existence of a
product through the recommendation of friends or family members who have experienced the
product. Customers will visit the website kitchen-ibu.biz or Mother's Kitchen Facebook, making
rare purchases on the first visit. Potential customers often choose to browse products, browse
online purchase applications such as Shopee and Lazada, comparing prices offered by agents
before making a purchase. The process of delivering the product to the customer is under the
responsibility of the agent himself.
For suppliers or agents, they will be in direct contact with DIFI. Orders made by them will be
recorded and the supplier or agent will interact via a Facebook order or contact a customer
care executive to discuss product quantity and shipping arrangements. Once a supplier or
agent orders, they have the option of making a payment via bank transfer or cash on delivery
if the area is nearby. Most products ship within 24 hours
PRICING AND EXPERIENCE
Iznie disagrees that all online shoppers are price conscious. She argued,
Some buying models are positioned around more volume driven volume. Companies are
growing to this level with the need for intermediaries such as distributors and agents, so
that they have different prices in some areas. I do not agree that all e-commerce users
are cost-based. This is true only for the first induction or purchase, and after that, they
also appreciate the choice and convenience.
Iznie has a strong association with chili, salted and anchovy suppliers in Malaysia and she works
closely with them to maintain lower production quality and lower cost structure. Iznie
commented, "I give you quality products at a lower price than Adabi", adding that DIFI has
chosen a flexible purchasing policy whereby suppliers and agents can procure products at
factory prices. However, DIFI sets the same price for all suppliers and agents and it is up to
them to determine the final sale price to consumers (see Exhibit 4). Iznie stressed that cash
delivery, one of the most common payment modes in Malaysia, is very popular among
customers due to high consumer skepticism.
EXHIBIT 1: DAPUR IBU FOOD INDUSTRY WEBSITE

EXHIBIT 2: DAPUR IBU FOOD INDUSTRY PRPDUCTS
EXHIBIT 3: PRICING FOR FINAL PRODUCT SALE

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DAPUR IBU WENT ONLINE

Commenting more on managing products online, Behal says, "Being in an e-commerce

PRICING AND EXPERIENCE

EXHIBIT 1: DAPUR IBU FOOD INDUSTRY WEBSITE

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