Page 11 - SMART2021_Symposium DRAFT

nDalem Cokelat: Bean-To-Bar Chocolate in Indonesia

A Student Multidisciplinary Applied Research Team (SMART) Project

Giwon Kim , Yi Zou , Jing Wen Soh 3
1
2

Team Leader: Lin Fu 4

Faculty Advisor: Ralph Christy 5

Objective & Methods Background Information

Objective: Analyzing how nDalem demonstrated MSMEs*

resilience in response to COVID-19
• Micro, small, and medium enterprises (MSMEs) accounted for

more than 95% of all enterprises in Indonesia
Research Methods

• Literature review and data collection • Around 49% of MSMEs temporarily closed their business

• Virtual interviews with the founder of during the COVID-19 pandemic.

nDalem

Interviews nDalem via Zoom • Many Southeast Asian countries lack digital

infrastructure.
About nDalem Indonesia • Only 13% of 8 million MSMEs, in Indonesia, had

gone digital pre-COVID.

• Husband and wife founded bean-to-bar chocolate company Chocolate Industry

• Founded in 2013, based in Yogakarta, Indonesia

• Ethically sourced ingredients, Indonesian-inspired flavors & packaging

• Indonesia is the world's sixth biggest cocoa producer

5 12 employees across all 43 offline stores like • While Europeans consume, on average, 10kg of

distinct brands age groups souvenir & snack shops chocolate/year; Indonesians consume only 0.4kg

Indonesia-inspired Empowering Probiotic chocolate Emerging Cacao Supply Chain in Indonesia

flavors and lifestyle chocolate for health-

packaging for for smart, active conscious Indonesian Producers Indonesian Manufacturers Domestic and

tourists women consumers International Markets

Farmer-focused

Chocolate drink
chocolate for
brand (suspended socially-minded Growing & Fermenting & Processing &

due to COVID-19) Harvesting Drying Packaging Shipping Consumers
consumers

Analysis & Findings

We used the Value Chain Analysis to evaluate nDalem post-pandemic. The model is a chain of activities common to all businesses, divided into primary and support activities. Our

project focused on the primary activities to evaluate nDalem as they relate directly to the physical creation, sale, and maintenance of a product or service.

Inbound Logistics Marketing and Sales

Processes related to receiving, storing, and distributing raw materials Sales Transition to Online Marketing during COVID

60%

nDalem did not face any shortages of raw materials, as the key issue was a

lack of chocolate demand and not supply decrease in

sales

Offline Marketing Online Direct user to
Operations • Main customers: pre-COVID Marketing e-commerce sites

Tourists, hotels, and

Transformation activities that change inputs into outputs that are sold to customers restaurants Social Media Platforms

• Travel and social

nDalem suspended its brand of drinking chocolates and used distancing restrictions • Company history & products

online performance data to raise production efficiency significantly reduced • Events & Promotions

revenues from • Chocolate-making classes

• New products w/ collaborations
Outbound Logistics offline channels

Delivering the product or service to the customers Online Channels Pre vs Post-COVID Online content tailored to consumer

online revenue share group on each social media platform

nDalem used digital platforms with integrated

checkouts and delivery services – reducing costs Family focused Millennials focused

associated with packaging and delivery 3% → 80% content content

Conclusion

COVID-19 caused a shift in
Sales have rebounded, and

viable revenue options and Digital transformation for Internal operations Innovation nDalem is optimistic for the

consumer trends sales and marketing • Trimmed product line • New marketing techniques future with new revenue

• E-commerce • Built out delivery • Collaborations & streams and ways to reach

nDalem displayed resilience in • Social media platforms infrastructure partnerships

3 main ways their customers

Acknowledgements Affiliations References*

We would like to express our very great appreciation to Mr. Yuda 1,2 Cornell Institute for Public Shinozaki, S., et al.

(nDalem), Ms. Aunilla (Pipiltin Cocoa), and Mr. Garritt (POD Affairs (2020). Asia SME

Chocolate) for enabling us to interview them to observe their 3 SC Johnson College of Monitor 2020 –

daily operations during the COVID-19. Special thanks should be Business 3 Volume II: COVID-19

given to Dr. Lin Fu for her professional guidance and to Dr. Christy 4,5 Charles H. Dyson School Impact on MSMEs in

and Dr. Kiiti for their useful and constructive suggestions during of Economics and Developing Asia. ADB.

the planning and development of this research work. Management