New product development strategy for selling high value Nusa Tenggara Barat (NTB) beef in selected urban markets in Indonesia

Indonesia has a population of 250 million people with a beef consumption that reached 2.6 kg per capita in 2016, and it is expected to keep raising due to shifts in consumer preference for beef. Around 15 percent of the total beef demand is high-quality beef demand, but the majority is fulfilled by imported beef. Nevertheless, Nusa Tenggara Barat (NTB) province is one of the biggest cattle producer in Indonesia, with the potential to supply high quality beef as the majority of cattle raised in NTB is Bali breed that has a good carcass percentage and high nutritional value when the cattle is raised free range. Therefore, this beef has the potential to be differentiated and increase the profits of the local industry. However, the beef industry in NTB has been unable to position differentiated beef in urban markets in Indonesia. Hence, this research using quantitative and qualitative methods aims to develop a new product development strategy to sell NTB beef considering consumer preferences, their willingness to pay premium, and the current conditions of the local industry. Quantitative methods using consumer survey will be conducted to identify key attributes of differentiated beef and consumers willingness to pay more for differentiated beef products. Consumer surveys will be conducted in cities in Java Island, which are the biggest beef markets in Indonesia. Further, qualitative methods using interviews with stakeholders of the beef chain will be conducted to consider the current conditions and opportunities in each channel. Results of this study will present a recommendation of a new product development to help the local industry selling NTB beef in selected markets in Indonesia maximizing their profits.