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THE IMPORTANCE OF ONLINE TRANSPORTATION EFFECTIVENESS FOR
BUSINESS RESISTANCE STRATEGIES DURING THE COVID-19 PANDEMIC

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1.0 SUMMARY..........................................................................................................................1

2.0 COMMENT/ CRITIQUES...................................................................................................2

3.0 REFERENCE........................................................................................................................3

4.0 APPENDIX...........................................................................................................................4

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The global Covid-19 crisis in Indonesia had a significant impact on the instability of

several sectors, particularly the economy. Thus, the purpose of this research is to investigate

the function of online transportation service Grab to small and medium-sized businesses in

order to limit the movement of people and goods. Because of the adjustment that the owner

business made with the e-commerce of online transportation, especially with Grab delivery,

there are MSMEs that remain stable and see an increase in sales turnover.

Therefore, online transportation is important in helping the MSMEs in creating new

products or updating their marketing systems to combat the dropping direct sales which is

resulting from the trend of individuals staying at home more than ever. Not only that, but due

to operating hours restrictions in some areas, many small and medium business owners

choose not to open their stores, resulting in problems obtaining raw materials due to

transportation issues. Therefore, product improvements and use of various marketing tactics

are needed to withstand the different methods in delivering goods to the customer instead of

Online transportation also involves reducing transaction costs and greater

cooperation between company partners in economic activity. Additionally, the use of

technology in corporate management has the potential to reduce costs while also assisting in

the achievement of organizational goals. In terms of business performance and efficiency, it

also encourages and boosts their ROI, which may be assessed by active engagement, such as

customer feedback and review between the Grab application users.

Not only the e-commerce in online transportation benefits the MSMEs owner to improve their

profit selling, but also businesses now can access a bigger market share that was previously

restricted to selling exclusively in specific locations. Thus, another role of online

transportation is to expand the network and market target. Taking use of e-commerce sales

is one way to stay in business and reach out to more customers. Moreover, business owners

nowadays are more flexible in monitoring and observing rival’s sales and adapt them in

This article was so important in responding to the Covid-19 pandemic, MSMEs are

working with the online transportation service Grab Food not only as a selling platform, but

also to form partnerships, develop new market concepts, and use a more effective marketing

system to turn e-commerce into an educational tool. After all, businesses that can survive are

businesses that are responsive to environmental changes

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In response to the epidemic of Covid-19, MSMEs in Indonesia cooperate with the

Grab delivery service to survive and optimize client relationships. The article “The

Importance of Online Transportation Effectiveness for Business Resistance Strategies During

the Covid-19 Pandemic” by Doharman Lumban Tungkup (2021) examined the relevance of

business owners adopting online transport as a solution to the economic slump. While

this article produced significant results showing the important roles of e-commerce delivery

towards MSMEs, there are limitations related to replicability and generalizability of results.

Doharman Lumban Tungkup (2021), on the other hand, relied solely on participant

observation and the analysis of existing documentation from other sources. In his method

study, he did not create his own key sample, unlike other similar research made by Nurlinda,

Sinuraya, Junus, and Asmalidar (2020), where their questionnaire sample was taken from the

population of 50 traders from Rujak UMKM in Jalan Pasar 7 Kab Deli Serdang as their data

collection in order to determine the effect of online technology on the performance of

MSMEs during the pandemic era. This lack of detail would make it difficult to ensure

accurate results and make the research seem biased and less integrity. As stated by Bhat A.

(2021), the most important goal of data collecting is to collect trustworthy data for statistical

analysis, thus allowing data-driven research decisions to be made.

Regardless of the fact that the author did not personally test the consumer and just

stipulated based on results from other sources, the benefit of online transportation towards

MSME might be too general and not represent all local people. In Indonesia, Grab and Gojek

are the most popular e-commerce companies with delivery sourcing services (Cahyani et al.,

2020). This creates a duopoly market where two companies dominate the market and tend to

compete against each other, reducing the chance of monopolistic market power.

According to Andriani et al. (2021), their theory reveals that the type of company,

weather, payment methods, zone, time, and distance all have an impact on price determination

for food delivery services. Apart from creating revenue and public engagement, the author

might as well consider the healthy growth and price competition in food delivery services.

Not only innovation and business sustainability are important, but satisfaction and protection

of the community as consumers are also crucial (Andriani et al., 2021).

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Tungkup, D. L. (2021). The Importance of Online Transportation Effectiveness for Business

Resistance Strategies During the Covid-19 Pandemic. KnE Social Sciences, 396-414.

Nurlinda, N., Sinuraya, J., & Asmalidar, A. (2020). The Influence of Online Technology on

the Performance of MSMEs in the Covid-19 Pandemic Era.

Bhat, A. (2021, June 14). Data Collection: Definition, Methods, Example and Design.

QuestionPro. https://www.questionpro.com/blog/data-collection/

Cahyani, Zahita & Nurcahyo, Rahmat & Farizal, Ff. (2020). Popularity Analysis of Mobile

Food Ordering Apps In Indonesia. 1000-1004. 10.1109/ICIEA49774.2020.9102024.

Andriani, D. P., Kusuma, L. T. W. N., Rachman, A. B., Firdausa, S. Z., Azzahra, A. D., &

Fadhlurrahman, Q. A. (2021, April). Parameter identification for the decision model of

uncertainty price competition in food delivery services. In IOP Conference Series: Earth and

Environmental Science (Vol. 733, No. 1, p. 012035). IOP Publishing.

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KnE Social Sciences
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The Importance of Online Transportation
Effectiveness for Business Resistance
Strategies During the Covid-19 Pandemic
Doharman Lumban Tungkup
Lecturer Of Politeknik Sungai. Danau & Penyeberangan Palembang
Abstract
The stress on remote working during the Covid-19 pandemic, to prevent the spread of
the disease, has contributed to global economic uncertainty during 2020. and this has
detrimentally impacted micrq small and medium enterprises (MSMES) to a significant
extent. This has an impact on economic instability and one of those affected is MSMES.
For this reason. a survival strategy is needed to enable MSMEs to survive. One potential
option is to collaborate with online transport services. This study combines qualitative
research methods with exploratory steps with participatory observation techniques.
Using UKMK and Grab Food as a case study, this article proposes that MSMEs look
to involve themselves in e-commerce, focusing on digital marketing and collaboration
opportunities to establish and optimize customer relationships.
Keywords: Online Transportation; Grab Food; Covid-19.
1. Introduction
The Covid-19 pandemic that occurred globally certainly had an impact on various
Sectors, especially in the economic sector. This economic impact is only felt domes-
tically, but also globally. International Monetary Fund (IMF), which projects the global
economy to grow at minus In Indonesia, this of course also has a significant impact
on tourism, the trade sector, industry including Micro, Small and Medium Enterprises
(MSMEs). The impact of Covid•19 has been seen directly from the massive layoffs in
several companies, the closure Of several businesses which resulted in the dismissal Of
employees.
According to a report from the Organization for Economic Co-operation and Devel-
opment (OECDL the Covid-19 pandemic affected the economy in terms of supply and
demand as well as transportation. On the supply side, companies reduce the supply
Of raw materials and unhealthy labor and supply chains that are also experiencing
constraints. From the demand side, the lack of demand and the decline in consumer
(20201. o' Cmline Effecu—ß for
in or WOfer in New Page
Social Sciences, pages 001

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confidence in a product, as well as on the transportation side at the time of the pandemic,
this really affects the MSME players. This is because many people stay at home. The
OECD also said that MSMEs had a significant impact on the conditions of Covid-19.
MSMEs are very vulnerable to being affected by business disruption (McKibbin, WJ, &
Fernando. R. (2020). The global macroeconomic impacts of COVID-19: Seven scenarios).
Data from the Ministry of Cooperatives and Small and Medium Enterprises (IJKM)
shows that in 2018 there were 64,194,057 MSMEs in Indonesia and employed
116,978,631 workers, Indonesia is dominated by MSMEs, which are the backbone of the
national economy and have been seriously affected not only in terms of production
and their income, but also on the number of workers that must be reduced due to this
pandemic (Pakpahan, 2020). MSMEs lack resilience and flexibility in dealing with this
Pandemic due to several things such as the low level of digitization
Regarding the Covid-19 Pandemic, Government Regulation Number 21 Of 2020 con-
cerning Large-Scale Social Restrictions was issued With the aim Of limiting the movement
of people and goods requiring the public if there is no urgent need it is expected to
stay at home. This also has an impact on the limited operations of MSMEs and fewer
consumers who shop directly compared to normal days. With this, Business Actors can
adjust themselves by opening online Stores selling through e-commerce. E-commerce is
a system of sel ing, buying and marketing products using electronics. That e-commerce
has a positive and significant effect on improving marketing performance and income
of MSMEs.
In addition to e-commerce trading, SMEs are also required to be able to communicate
products intensively by marketing products using digital marketing and utilizing social
media to be able to reach consumers directly and reduce promotional costs. Digital
marketing is marketing that is done using internet access, utilizing social media and
other digital tools. Digital Marketing helps companies or business actors promote and
market their products and services and are able to expand new markets that were
previously closed or limited due to limited time, distance and communication methods
(Prabowo, W. A. (2018), Pengaruh Digital Marketing terhadap Organizational Perfor-
mance Dengan Intellectual Capital Dan Perceived Qualitysebagai Variabel Intervening
Pada Industri Hotel Bintang Tiga Di Jawa Timur. Jurnal Manajemen Pemasaran, 12 (2),
101-112. https://doi.org/10.9744/pemasaran.12.2.101-112).
The Covid-19 pandemic has led to shifts and changes in consumer buying patterns.
IJMKM players must also adjust and condition the sales of their products and services.
It is necessary to improve product quality and service adjustments to attract consumers.
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In this modern era, tcxfiyS marketing world continues to evolve and change, from tradi-
tional marketing concepts to modern marketing concepts. The factors of the increasing
number of competitors, the sophistication of technology and the increase in education
regarding marketing, further accelerate and stimulate business actors to innovate in
developing strategies to meet their needs in accordance with consumer expectations.
The increasingly rapid development of marketing strategies certainly causes business
to continue to innovate in competing, this can be seen by the increasing number
of new products with various innovations. A number of industries and companies
that are already at the global level have responded to this increasingly competitive
business world. Thus, the activities carried out by companies are also influenced by
the conditions Of a country. one Of which is the 'mulation growth rate. The rate Of
population growth that continues to rise has an impact on the level of community
needs such as transportation. World development creates fierce cornßEtition. Various
ways are done in order to get customers and keep them. One of the strategies that
companies use to be able to win the competition is with good service quality Customers
are interested in buying a product or service because of good service quality. "Service
quality is the level of excellence expected and control over that level of excellence is to
fulfill customer desires (Fandy, Tjiptono and Gregorius Chandra. 2016. Service, Quality
& Satisfaction-Yogyakarta. Andi).
Factors that influence consumer decisions are promotion. Promotion is the prcxess
Of communicating a company With interested parties now and in the future and the
community. The high dependence of the community on transportation is the main
reason for continuing to develop a transportation business that suits the needs Oftcxiay's
society (Putri, N. E.. & Iskandar, D. (2014). Analisis Preferensi Konsumen Dalam peng-
gunaan Scxial Messenger Di Kota Bandung Tahun 2014 (Studi Kasus: Line. Kakaotalk,
Wechat, Whatsapp). Jurnal Manajemen Indonesia, 14(2), 110-126). The rapid advance-
ment of information technology has an impact on the development of the transportation
business. Advances in technology provide changes to business processes, esl*-cially
in transaction processes. One of the advances in information technology that has
contributed greatly to these changes is the internet. The Internet provides companies
With a faster and easier business process than the manual methcxi Which sacrifices
greater time and costs.
With the large number Of smartphone users in Indonesia as well as advances in
information that are increasingly developing so that public is
developing using applications and can accessed using smartphones or commonly
referred to as online motorcycle taxi transportation which can make it easier for people
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who will travel and live using smartphones, online motorcycle taxi transportation will
come„ One of these online motorcycle taxis is Grab. and now Grab is here as a service
ccrnpany based on gadget application technolcM that makes it easier for consumers
to get services.
Grab is a engaged in Ojek (motorcycle taxi) transportation services, which
aims to connect Ojek with Ojek passengers. This company was first established in
Malaysia in 2012. Grab is a social-spirited company that is leading the revolution in
the Ojek transportation industry. Due to the effectiveness of this companys goal of
partnering with experienced motorcycle taxi drivers, the better and increasing customer
interest so that Grab is tEing developed in Southeast Asian countries, especially in
Indonesia, Grabs presence in Indonesia is a tool for daily community activities such as
delivering passengers, delivering packages and food delivery
on the research, it can be seen the reasons for MSME actors and consumers
choosing to use Grabfood services during this pandemic, then Grabfood provides non-
cash payment services with non•cash payments, of course consumers no longer need
to with cash as a transaction tool, of course it will greatly help avoid spreading
Covid-19. provides direct contactless service because Grab pays attention
to the safety Of customers and delivery partners, Grab is working With restaurants and
other MSME players to improve safety standards for food delivery services which include
cleaning procedures and food packaging, so GrabfcR)d is the main choice of consumers
and make it easier for MSME actors in order to deliver f0-Od during this pandemic.
Grab provides discount vouchers and free shipping, so with the promotion from Grab,
Of course, consumers are more interested in using Grabfood services. With Grabfocxi
making it easier for MSME players and consumers to order food without having to
queue for a long time, of course, it saves more time and guarantees more safety and
effectiveness for partners and consumers from the of Covid-19.
This research was conducted to answer what can be done by MSME actors to be able
to maintain their business and the role of online transportation Grab Focxi in the midst
of the Covid-19 Pandemic that hit the wor d. This study aims to describe and describe
what are the survival strategies and effectiveness of transportation in helping MSMEs
players so that they can continue to survive and become more to changes
in the business climate, when Covid-19 occurs.
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2. Research Methods
This type of research is a qualitative methcxd. According to stating that qualtative
research methods are the most appropriate type of research method in capturing human
perceptions only with direct contact and an open mind and through inductive processes
and symbolic interactions, humans can recognize and understand something. (Semi-
awan, C. R. (2010). Metode Penelitian Kualitatif: Jenis, Karakteristik dan Keunggulannya
(Arita L (ed)). Grasindo_ P14) The research was conducted in the field with the object of
research in the form of the effectiveness of online transcx»rtation (Grab focxi) to MSMEs.
The data collection technique used in this research is participatory observation with
an exploratory step, namely doing one Of the qualitative data collection techniques
that is recommended to obtain descriptive data. (Gunawan. l. (2017). Metcxie Penelitian
Kualitatif. in Bumi Aksara (5th ed))
Sources of data used are primary data in the form of observations and se•condary data
in the form Of data collected, processed and presented by Other parties in the form Of
books and the results of previous research related to MSMEs and online transportation.
After conducting participatory observation and reviewing existing documents. field data
analysis will be carried out which is linked to theories. exrprt opinions and results of
previous research. Furthermore, it will be abstracted into the results of research findings
and issue recommendations for research results that can adopted by MSMEs and
Grab Focx:i as online transvx)rtation services.
3. Results and Discussion
With the governments appeals and regulations not to leave the house, of course it
affects many things including MSMEs. The government, through the official website
of the Ministry of Cooperatives and MSMEs, states that the spread of covid-19 has
the potential to have a direct impact on the economy including the sustainability
of micro, small and medium enterprises (KUMKM). Now the Ministry of
Cooperatives and MSMEs is recording the conditions Of MSMEs that are experiencing
raw material difficulties, production process constraints and market demand which has
dropped dramatically and then mapping the impact of Covid-19 on MSMEs (Ibid).
Based on the results of observations. the average MSME experience a decrease
in turnover during the COVid•19. This happened because Of the decreasing activities
carried out outside the home, difficulties in obtaining raw materials due to transportation
problems, and the decline in public confidence in products that were outside,
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the culinary sector. MSMEs, which are one of the pillars of the economy because they
also provide many jobs. with the existence of Covid-19, some have also started layoffs
or laying off temporary employees because their companies / businesses have to close
temporarilv
Other findings are based on observations, not all MSMEs feel a decrease in sales
turnover and have to close their businesses, there are MSMEs that are still stable and
experience an increase in sales turnover because they make adjustments in terms
of products and carry out several marketing strategies to survive the use of online
transportation (Grabfood). There are several things that can be done by MSMEs, includ-
ing chcxysing to open new products or ugxlating their marketing systems, because
businesses that can survive are businesses that are responsive to changes in their
environment. Some of the things that can be done by MSMEs are as follows:
3.1. E-Commerce
(2) In the midst of Covid-19. direct sales generally have decreased due to the pattern of
staying at home more. In addition, many MSMEs choose not to open their shops
or businesses because of operational hours restrictions or the imposition of Large-Scale
Restrictions (PSBB) in several areas. One way to keep running a business and
reach more consumers and expand market share that can be done by MSMEs is to
expand the network by taking advantage of e-commerce sales.
E-commerce is a process of buying and selling products electronically by consumers
and from company to company with a computer as an intermediary for business trans-
actions. E-commerce. which was originally an online retail sales mechanism, now has a
broader meaning. E-commerce has created a new dig•tal market with more transparent
prices, easy access, a global market with highly efficient trading (Laudon, K. & Traver,
C. G. (2016). E-commerce: business, technology, society). Although it is not yet
e-commerce has a direct impact on the relationship companies Or business
actors with suppliers, customers, competitors and can easily market products and adopt
other marketing methods of business #ople. Some e-commerce that can be used by
MSME players in Indonesia, such as tokopedia, open stall, OLX, Grat1 Lazada
E-commerce has a positive and significant effect in increasing the performance and
income of MSMEs D.. Nurhayati. E.. & Rosmita. (2019). Pengaruh Transaksi
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Online (ecommerce) Terhadap Peningkatan Laba IJMKM (Studi Kasus UMKM Pengola-
han Besi Ciampea Bogor Jawa Barat). Jurnal Mitra Manajemen (JMM Online).
509). However, related to small businesses, e-commerce has a positive but insignificant
effect in improving marketing performance (Ibid). In this case, it is recommended that
business actors be able to trade in e-commerce. but there is a need for assistance for the
government or practitioners and education to be able to provide guidance to business
actors so that they have sufficient knowledge and can maximally use this e-commerce.
In the era ofthe industrial revolution 4.0, business actors should have moved to trade
in eq:ornmerce because the trading and spending patterns of consumers have started
to shift, plus the Covid-19 pandemic has made e-commerce trade a good choice for
consumers. UMKM players to be able to survive and even have the potential to be able
to reach new market shares.
E-commerce has a positive and significant effect on improving the performance Of
MSMEs (Mahliza, (2019). The Influence Of E-commerce Adoption using Social Media
Towards Business Performance Of Micro Enterprises. International Journal of Business,
Economics and Law Vol 8 issue 5 (April)). E-commerce carried out by MSMEs is related
to reducing transaction costs and closer coordination of economic activities between
business partners. In addition, the use Of technology in conducting business can reduce
costs and can support the achievement of company goals. E-commerce can be run
properly based on the 4C principles, namely: connection, creation, consumption and
control. (Laura Hardilawati, W. (2020). Strategi Bertahan IJMKM di Tengah Pandemi
Covid-19. Jurnal Akuntansi dan Ekonomika, 10(1), 89-98) This principle can motivate and
increase the companys return on investment (ROI) which can be measured by active
participation such as customer feedback or reviews, and share or recommending to
other users.
The main purpose of using e-commerce by MSME players is of course to be able to
increase their profits, but besides that there are other purposes that can be used by
business actors including being able to reach a wider market share which previously
was only limited to selling only in certain areas, With the existence Of e-commerce can
reach new consumers. MSME players can not only make e-commerce as a selling portal ,
but can build relationships and build new market concepts and use a more effective
marketing system and make e-commerce as a learning medium. MSME players can also
see and observe sales made by competitors and adopting them.
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3.2. Digital Marketing
In the midst of the Covid-19 pandemic that was experienced in Indonesia in particular.
it greatly reduced the sales turnover of MSMEs. The reduced number of consumers
in several Sectors and industries requires MSME players to be able to market their
products optimally and to think creatively and innovatively. The use of the internet
during the CovicM9 pandemic is like a necessity including running a business and
an effort to manufacture products that can be adopted by IJMKM players are doing
digital marketing. The digital era that is developing rapidly today is impossible to avoid.
Yuswohadi marketing expert revealed that if you want to survive, then MSME players
must be able to maximize the benefits of digital development (Purwana, D., & Wibowo,
A. (2017). Pendidikan Kewirausahaan di Perguruan Tinggi. Yogyakarta: Pustaka Pelajar).
Digital marketing is a promotional activity and market search through online digital
media by utilizing various means such as social networking. The digital marketing
method that is often used by business people is to use social media such as marketing
products through Instagram, Facebook, Twitter and many more. (Ibid). In addition. digital
marketing can also be done in e-commerce and many other media. The rapid develop-
ment of technology also makes digital marketing understandable and understandable
by MSMEs.
Digital marketing has a positive and significant effect in increasing the sales perfor-
mance of MSMEs (Ibid). 70% of creative entrepreneurs say digital marketing will become
the main communication platform in marketing, and offline stores will be complementary,
due to the ease and ability of digital marketing to reach more consumers. That business
actors must foster courage in trying new things such as digital marketing so that they
can continue to develop their business. MSME actors can also start by creating social
media and regularly carrying out promotions so that they will be more confident and
hone their Creativity in marketing.
There are several forms of digital marketing that can be done by SMEs to be able
to do product marketing, which are as follows: (1) Intensive publication of videos and
product photos on social media accounts. The use of social media is also adjusted to
the product segments we have. (2) Make use Of Facebook ads. Instagram ads. Twitter
ads, google distribution networks, etc. which can be easily accessed through social
media and can reach consumers with the criteria we have previously determined. (3)
Creating marketing product Videos that are broadcast through social media or doing
live product promotions. This strategy if done correctly will have a positive effect on
the business. (4) Involving Consumers in product selection, Conduct intensive education
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and intrcxluction to product quality on scxial media accounts and use creative words
and use hashtags to make it easier for consumers to find. With this, brand awareness
will be formed and can influence consumer purchasing decisions.
In doing digital marketing. MSME players are required to always learn and think openly
to increasingly developing technology. Of course, digital marketing also considers using
suitable media and the right way of communication that is tailored to the selected
segment or market share. So that marketing will more effective and not wrong
target.
3.3. Product and Service Quality Improvement
In the midst of the Covid-19 pandemic, consumers are more careful in using goods
and services and there has been a decrease in consumer confidence in gcx)ds and
services sold by business actors. In addition, the limitations of consumers in making
direct purchases also have an impact on the significantly reduced number of consumer
purchases. For this reason, MSME players must make improvements to product quality
to increase consumer confidence and intensively communicate product quality.
That the improvement of product quality and service quality has a positive and
significant effect in shaping consumer satisfaction and creating consumer loyalty for
MSME players. For this reason, business actors during the Covid-19 pandemic need
to attention to the dimensions of product quality and improve their prcxiucts to
increase consumer confidence. (Ibid).
Product quality is defined as the ability of a prtxiuct to meet consumer needs
and desires (Kotler, 2, & Armstrong, G. (2012). principles Of Global Marketing. USE:
Pearson Education, 6, 4748). For this reason, it is important for MSMEs to pericxiically
improve product quality by the needs, desires and expectations of consumers.
There are eight dimensions in determining product quality, namely (l) product perfor-
mance or how well the product can be measured (Faridah. L. A. (2017). Pengembangan
pembelajaran inkuiri dan PJBL belajar potensi lokal untuk
meningkatkan pemahaman konsep, keterampilan proses sains, dan sikap ilmiah siswa
kelas X SMA Mazraatul IJIum Lamongan (Doctoral dissertation, Universitas Negeri
Malang)). (2) additional features Or attributes that complement and enhance product
functionality. (3) Product reliability or ability to withstand possible changes in the busi-
ness environment in a certain period. (4) suitability or how well the product is in
accordance with the existing standards in the industry. (5) durability or durability of
the from a technical point of view and economic value. (6) ease of repair of
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products if there are problems and can be repaired immediately. (O product æsthetics,
namely how the product is seen. heard or felt. (8) perceptions of product quality which
include brand reputation and other factors that can influence consumer
The form Of improving product quality that can be done is to carry Out more detailed
product quality control and ensure product cleanliness and safety. In addition, MSME
players can adjust the durability of products and packaging because sales now use
online sales more often so that product durability and safety must be improved. In
addition to improving product quality, MSME players can also improve service quality
and add types of services such as delivery orders and online purchase services and by
using special sales service hotlines that can be easily accessed by consumers. Even
though there are businesses that cannot a business directly, MSME5 can use
direct delivery of their products such as creating their own delivery service, or using
applications such as Gojek.
In conducting delivery services, business actors also tighten their service standards
by improving and ensuring the cleanliness of their products. For services, services can
be through online media and using service activities online so that they can
be more effective and business can run as usual. will able to form consumer
trust so as to create customer satisfaction and consumer loyalty. During this
pandemic, consumer trust is an important factor in business continuity.
3.4. Customer Relationship Marketing (CRM)
During this Pandemic. SMEs should not only focus on attracting new customers but must
maintain prcxlucts and look after existing customers, create customer satisfaction and
ultimately create customer loyalty. Loyal customers will not move to another because
they already have confidence in our prcxiucts. One way for MSMEs to survive in the
midst of a decline in business activity is by doing customer relationship marketing.
Customer relationship marketing is a marketing strategy concept that seeks to estab-
1ish long-term relationships with customers. namely maintaining a strong and mutually
beneficial relationship between service providers and customers that can build repeat
transactions and create customer loyalty. Customer relationship marketing has a posi-
tive and significant effect in increasing the marketing performance Of MSMEs through
improving the quality of relationships and entrepreneurial orientation (Faridah. LA (2017).
The Development Of Inquiry-Based Biology Learning And ppa Is Based On Local
Potential Learning To Improve Conceptual Understanding, Science Process Skills, And
Scientific Attitudes Of Class X Sma Mazraatul Ulum Lamongan (DIXtoral dissertation,
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State university of Malang)). The better the quality of the relationship between MSME
actors with consumers, suppliers and others. the better the ability to improve their
marketing In addition, business actors who dare to take risks, already
have experience in business and are flexible towards business, can increase networks
and foster trust from consumers, so that consumers will survive. Different research
results that obtain CRM results have a positive but not significant effect on improving
the performance of MSMEs. This is because MSMEs have limitations and have not been
maximal in running CRM.
In current conditions, to establish marketing relationships with customers, business
actors are also advised to be able to show concern for consumers who are experi-
encing difficulties at the time Of Covid-19. Business actors can show concern which
is also aimed at marketing products. examples of how to build customer relationship
marketing by increasing empathy for this epidemic such as providing promo or free
product schemes for couriers who do delivery services, setting aside a portion of the
income from selling procluct products for in need. This methcxi can also build
consumer trust and customer tX)nding. So during this pandemic we MSME actors do not
only think about themselves, but build consumer marketing relationships by showing
concern and things that business actors do. In addition, MSME players can also
communicate with customers in various promotional media and e-commerce that are
owned intensively, such as answering sales complaints or answering gcnd responses
from consumers. this also creates positive customer engagement.
3.5. The Effectiveness of Online Transportation (Grab Food) To
MSME Players And Consumers
Increasingly sophisticated technology certainly makes all people living at this time very
dependent on information technology in their every activity. educa-
tional curriculum, government public service using online methods, a judicial system
that has implemented E-Court, and so on. In short, todays advances have
truly been and are felt to provide a lot Of convenience and comfort for
the lives of the (Dwiningrum, Siti Irene Astuti. (2012). Basic Social and Cultural
Sciences. Yogyakarta: UNY Press. First printing).
Applications that facilitate transportation are loved by the public during the covid-19
pandemic especially the application online motorcycle taxis such as Grab FOCRI. The
presence of this application was warmly welcomed by the public considering the ease
of ordering and the practicality of use. In addition, the security in this application can
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be accounted for and the costs are lowcheap price makes Grab Food increasingly
skyrocketed and needed during this pandemic. In addition to providing convenience to
consumers, this online food delivery service also provides benefits for business people,
helping to provide the widest possible access to those mo want to innovate culinary
without large capital. Business people. especially culinary entrepreneurs who adopt
online food delivery services, do not have to have special employees and separate
vehicles for delivery services to consumers. So they dont need to pay additional costs
for employee salaries. nor do they need special space or places to use these services.
The advantages of being a Grabfood partner:
1. Promo cost between,
2. maximizing business potential: expand product potential to millions of Grab food
and Grab users who are ready to be served by hundreds of thousands of drivers,
3. strategy position on application; The various features and categories in the Grab
Food application will make it easier for restaurants to be accessed by millions of
Grab users.
4. access to customers; through the Grabfood marketing channel. merchants can
inform various superior products directly to millions of Grabfood users,
5. promotion via application; display of the best menus on application features.
Grabfood has networks in several countries. namely Indonesia. Ma aysia, Thailand.
Singapore, Vietnam, Cambodia, the Philippines and Myanmar. Currently Grabfood is
a partnership service from Grab in addition to other services such as GrabWheels,
GrabBike. GrabCar. and Kiosk Merchant. Currently Grabfood is one of the main players
in the food delivery marketplace with culinary SMEs as merchants.
The products of each merchant can amount to dozens of types as desired, some
even display hundreds of product items. The number of MSME products displayed on
the Grabfood service varies from one another.
The interface display of the platform makes it easier for MSME players to update
various products, product details, promotions and deve oping prices as well as general
responses in the form of consumer testimonials. Meanwhile, for consumers, it is also
made easy for consumers to search (search) the desired product and provide testi
monials. Grapfood organizes programs that promote various aspects such as: nearby,
discount parade, cashback, savings and delicious (delicious), as well as cheap shipping
promotion. In general, Grabfood puts forward as a platform with uniqueness as the
restaurant partner of choice, fast delivery and trusted service.
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The constraints of the culinary business for MSMEs during the Covid-19 pandemic
were limited access and time for offine visits. Enforcement of government policies for
businesses and consumers when conducting business activities is directed to follow
health protocols in minimizing the of Covid-19. The culinary business MSMEs
studied on the Grabfocxi platform based on delivery order partnerships help bridge
technical obstacles in the field in terms of consumer access to sellers. Sales through
the Grabfood application when delivering prcxlucts to driver partners still follow standard
health protocols.
Efforts to grow or at least survive during a pandemic give hope for MSMEs in
serving the needs, desires and of consumers with the adjustment of digital
marketing applications through online delivery partnerships amid restrictions on the
movement of people along with health protocols.
The application Of online delivery, especially in the culinary business, can mapped
to 8 (eight) namely: product, price, promotion, place, HR (people), prcxess,
facilities, physical evidence, information (probe).
3.6. Product Aspect Support
The features provided by the Grabfood platform vendor at MSME merchants are able
to display product innovation and the variety Of products Offered Virtually The ease Of
urxiating product content and full color prcxduct display on the Grabfood application
content that consumers access improves the performance of the product and brand
used by each culinary business actor.
The features provided by the vendor are arranged in an attractive layout, the number
Of items is adjusted to the Of products. This condition allows the creation and
innovation of products produced by each UMKM to and easily accessible to
consumers. This is in line with the essence Of digital marketing which is considered
capable Of increasing brand awareness and attracting potential consumers (Yoga IMS
Korry NPDP Yulianti NMDR, (2019). Information Adoption on Digital Market-
ing Communication Channel, International Journal of Social Sciences and Humanities,
vol. 3 No. 2, August 2019. pages: 95-104. https•J/doi.org/1029332/ijssh.v3n2.297).
3.7. Promotion Aspect Support
Grabfood merchants accessed in the application make it easy to display promotional
programs, especially in the form of selling promotions to customers and potential
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markets. It is easy to update sales promotions by adjusting soft copy and meta data
in coordination with platform providers. Sales promotion as a part of the promotional
mix can be utilized by always paying attention to promotional updates, product support
availability and promotional policies.
Through the Grabfood application, the appearance of each restaurant and digital
sales promotions can be adjusted to the promotional of each partner. Con-
sumers browsing restaurants and products can easily find promotional offer items. It was
found that the platforms ability to virtually distribute accessible information on aspects
of products, prices and promotions as well as product value simultaneously. This shows
that a digital marketing platform allows every business actor to simultaneously create,
promote and deliver value (Key, T. M. (2010, Domains Of Digital Marketing Channels in
the Sharing Economy, Journal of Marketing Channel* 25:27-34
3.8. Support Variety Of Alternative Price Offerings
In contrast to conventional business patterns, where buyers will require more effort
When Visiting the location Of selling goods or services, seeking various information about
prices and the time it takes to make a transaction. In the online delivery service feature,
consumers can easily find out various alternative prices along with the appearance Of
existing products only through consumer-owned gadgets.
Opportunities in adjusting product price Offerings by MSMEs to consumers automati
cally also provide challenges in the form Of easiness for consumers to search or browse
product price information from various similar business entities. In order to overcome
this phenomenon, MSMEs can apply it through the ability to provide added value Or
solutions to products offered to consumers. The convenience displayed by the platform
accelerates consumer access to find the most appropriate price until transactions occur
that contribute to increasing sales value. This is in line with research which states that
digital marketing applications have a positive contribution to increase sales
(Ibid).
3.9. Distribution Access Support (Place)
The online delivery application shows its role when consumers are and
decide to buy products Offered by sel ers, buyers can easily find out the
travel time and the movement of drivers who deliver orders. The ease of access to the
premises has made it possible for MSME entrepreneurs even by utilizing home-based
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businesses to be further developed through quality improvement. product innovation
and online partnerships. This is in line with research on digital market'ng channel appli-
cations that will open up alternative opportunities for online access that will increase the
attractiveness Of users both on B2B and B2C patterns. (Garcia JJL Lizcano Ramos
CMO Matos N (2019) Digital Marketing Actions That Achieve a Better Attraction and
Loyalty of Users: An Analytical Study. Future Internet 2019, 11, 130; 1-16 doi: 10.3390
/ fi11060130) Likewise regarding MSME products in Bantarsari Cilacap district, which
found that digital marketing applications were able to expand access to consumers.
(Ibid)
The access and distance of consumers to the location of the culinary business will
be even wider if the business actor increases the number Of service points or new
branches. This is reinforced by the research of MSME Big Bananas Makassar which
opened 3 new branches, which has provided the opportunity to expand the service area
to consumers. which has a positive impact on increasing demand for products which
further increases profits. (Suryadi D. E, Ilyas M.I. F. (2018), Adopsi Online Food Delivery
Service bagi Wirausaha Pemula di Kota Makassar (Studi Kasus pada Big Bananas),
Prosiding Seminar Hasil Penelitian (SNP2M) 2018 (pp75-80))
3.10. Process
The performance of MSME merchant business process services on the Grabfood deliw
ery service platform can be seen as having added value both in the product upload
process with a full color display on the platform. price details. promotions, order accep-
tance, order service, order handover and transactions supported by virtual services
and delivery support from partner drivers. From the perspective Of buyers and potential
prospects, this model will simplify the buying process compared to offline purchases
where buyers will need preparation to the location. product selection at location,
payment at location, and the various dynamics that develop at the location both when
leaving and returning. Another added value that every transaction is on
MSME Merchants through the Grabfood Platform, buyers can find out the tracking of
the drivers journey process both distance, location and estimated time to the buyers
location
This business service model is able to change the conventional purchasing paradigm
by reducing the purchase process time until the product arrives at the buyers hand.
Existing data shows the partnership of MSMEs in partnership with food delivery services
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the form of stars (from lowest rating of 1 star to the highest rating of 5 stars) given by
consumers. Testimonial information can be used by business actors to determine con-
sumer reslX)nses to the needs, desires of consumers, business rivalries and information
on newcomers. Information that can be accessed publicly and displayed in the online
delivery marketplace alloø.•s MSME merchants to know and at the same time further
assess the types of culinary businesses, products.
3.13. Support for Physical Evidence Aspects
Through the Grabfood application feature, culinary business MSME merchants can
minimize the use of space for business premises in the form of restaurants and store-
fronts as well as infrastructure. of the priority aspects for consumer
attention today that business actors need to pay attention to are service standards.
cleanliness, tidiness, completeness of service and after-service. Adjustments to MSMEs
as merchants include access to online platform partnerships, internet access and online
interactions with Grabfood partners. This is done by UMKM Partners, in line with research
results which state the need for increased awareness and adaptation of appropriate
technology applications in Order to achieve competitiveness and success in market
dynamics. (Mcxtezuma, NPB (2017). Digital Marketing in Building Market
ness in Mexico: Prcxeeciings of the Academy of Marketing Science, DOI 10.1007 / 978-
3-31945596-9_68 348-357)
Complaints Or input from consumers really need to be responded quickly and thor-
oughly, because consumers can easily spread their testimony about a product on other
Grabfood or social media platforms.
4. Conclusion
The Covid-19 pandemic that occurred in Indonesia had an impact on economic insta-
bility. on MSMEs. These UMKM players feel a direct impact in the form of a
decrease in sales turnover due to government calls and the implementation Of PSBB
which urge people to stay at home so that quite a lot of MSMEs have to stop OFErating for
a while. For this reason, MSME actors must have a Strategy to survive in the midst Of this
pandemic and are required to be able to to the conditions that occur. There are
several recommended survival strategies that MSMES can do to be able to maintain their
business, namely (1) selling through e-commerce because many now switch to
online shopping. (2) Marketing by utilizing digital technology (digital marketing)
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