Universitas Gadjah Mada
Faculty of Economics and Business

Micro, Small, and Medium Enterprises (MSMEs) face significant challenges in staying relevant and creating products that meet market needs amidst rapid technological advancements and changing consumer behaviors. Many MSMEs strive to understand digital business strategies and build a robust competitive advantage.

To support MSME business development, FEB UGM, through its Center for Entrepreneurship, Innovation, and MSME Studies, organized a Digitalization Business Training for MSMEs on November 19-20. The event featured Ivan Halim, B.Sc, Chief Marketing Officer of Sevenpreneur, as a speaker. He presented a "Developing Good Product & Unique Selling Proposition" session.

Ivan emphasized the need for MSME players to innovate and understand customer needs. This is crucial considering data from the Indonesian Ministry of Cooperatives and SMEs in 2021, which showed that only 1% of MSMEs in Indonesia can survive for more than 10 years. This situation is mainly attributed to limited access to capital, insufficient market knowledge, and lack of business skills.

"This data is also supported by the fact that 60% of Indonesian entrepreneurs fear business failure due to the risk of financial loss, inability to compete with larger companies, and challenges in attracting customers," Ivan explained.

Ivan shared tips on how to create products that sell. According to him, entrepreneurs must understand four key aspects that define a good product or service: customer pain points, needs, wants, and habits. Integrating these factors is expected to create businesses that meet market expectations and build customer loyalty.

In product selling, it is also essential to differentiate products or services from competitors by identifying a unique selling proposition. This approach helps create products with distinctive features and added value for customers.

"The products offered must be unique and specific. This means they must have features and attractive details that differentiate them from competitors. To discover this, one must identify customer needs, understand the strengths and weaknesses of the product or service, and analyze the competition," Ivan explained.

He also emphasized that a good product that fits the market (product-market fit) has several characteristics that entrepreneurs must identify early in their business journey. These include customers who have clear and urgent needs, are willing to pay a meaningful price, actively buy more and spread the word, and demand additional features while being willing to wait for innovation from the company.

"In innovation, technology is not the primary tool of disruption. Losing focus on the customer is the real problem. Make something that people want," concluded Ivan.

Reporter: Shofi Hawa Anjani
Editor: Kurnia Ekaptiningrum

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