Local Tauco Maker Thrives on Taste, Trust, and Traditional Marketing, New Universitas Graha Nusantara Study Shows
Padangsidimpuan, Formosa News — A new study from Universitas Graha Nusantara Padangsidimpuan reveals how a small home-based tauco producer, UD Sinar Jaya, has managed to survive and grow in a competitive food market through simple but effective marketing strategies. Published in 2026 in the International Journal of Advanced Technology and Social Sciences (IJATSS), the research by Nova Widia Siregar, Sutan Pulungan, and Anugrah Sri Widiasyih examines how product quality, affordable pricing, word-of-mouth promotion, and local distribution keep this family business resilient. The findings matter because they highlight how micro and small food enterprises can remain viable even without digital marketing or large-scale production.
Why this matters
Home industries play a critical role in Indonesia’s economy. They make up more than 99 percent of industrial businesses and provide jobs, income, and economic stability in many communities. In rural and semi-urban areas, small food producers often compete with larger brands that have better packaging, wider distribution, and online presence. Understanding how successful home industries operate can help other entrepreneurs, local governments, and policymakers support similar businesses more effectively.
Tauco, a traditional fermented soybean paste, is a widely used seasoning in Indonesian cuisine. Despite its long history, many small tauco producers struggle with modern market pressures, rising raw material costs, and limited access to digital platforms. UD Sinar Jaya, based in Joring Natobang Village in Angkola Julu, Padangsidimpuan, provides a useful case study of how tradition and practicality can still win in today’s marketplace.
How the research was conducted
The research team used a qualitative approach. Instead of surveys or experiments, they spent time in the field observing and talking directly with people involved in the business. They interviewed the owner of UD Sinar Jaya, one employee, one trader, and two regular customers. They also documented production activities and marketing practices through photographs and field notes.
The researchers analyzed the data using a step-by-step process that included collecting information, simplifying key points, organizing findings, and drawing conclusions. Their analysis focused on the classic marketing framework known as the 4Ps: Product, Price, Promotion, and Place (distribution).
From one barrel to a stable business
UD Sinar Jaya began in 2014. The owner, Mitra, and his wife initially ran a small workshop and sold simple snacks like bread and onion cakes. Remembering a family tauco recipe, they decided to try making tauco as a side business. Their first production was just one barrel.
Positive feedback from neighbors encouraged them to expand. Production gradually increased to five barrels and eventually to 20 barrels per batch. Over time, consistent demand and steady quality helped UD Sinar Jaya become a recognized local brand. Today, the business provides income for the family and creates work for people in the surrounding area.
What makes the product stand out
The study found that UD Sinar Jaya’s main strength lies in its product. Unlike many commercial tauco brands that taste very salty, their tauco has a milder, more balanced flavor. This suits local cooking preferences, where consumers want seasoning that enhances food without overpowering it.
Packaging remains simple. The tauco is sold in clear plastic with a label, mainly in 5-kilogram and 7-kilogram sizes. There is no fancy branding or colorful design. The owner deliberately keeps packaging basic to reduce costs and keep prices affordable.
Consumers interviewed in the study generally expressed satisfaction with the product. Some said the taste was similar to other tauco brands but appreciated the lower price. Others praised the cleanliness and durability of the packaging, which made the product suitable for resale in small shops.
Affordable pricing builds loyalty
UD Sinar Jaya sells its tauco for around IDR 34,000 per basket. The price is calculated based on production costs, including soybeans, salt, spices, labor, and other expenses, plus a reasonable profit margin.
When raw material prices rise, the owner adjusts the selling price slightly, usually by about IDR 1,000. According to customers, this small increase does not affect their willingness to buy. Many remain loyal because they trust the product and value its consistency.
The study concludes that this cost-based pricing strategy gives UD Sinar Jaya a competitive advantage, especially in local markets where consumers are price-sensitive.
Traditional promotion, strong community trust
Unlike many modern food businesses, UD Sinar Jaya does not use social media, online ads, or e-commerce platforms. Instead, it relies almost entirely on traditional promotion methods.
The main strategy is word-of-mouth marketing. Satisfied customers recommend the product to friends, relatives, and other shop owners. UD Sinar Jaya also consigns its tauco to nearby shops and traditional markets. In some cases, the owner sells directly to regular buyers.
The researchers note that this approach works well in rural communities where personal relationships and trust carry more weight than online reviews. Limited internet access and low digital literacy also make social media less practical for the business at this stage.
Local distribution keeps costs low
UD Sinar Jaya’s distribution remains local. The tauco is mainly sold in Joring Natobang Village and nearby markets, small shops, and stalls in Padangsidimpuan.
The owner personally delivers the product using his own vehicle. He does not use third-party logistics services because shipping costs would make the product too expensive for buyers outside the city. Keeping distribution close to home helps maintain product quality and keeps prices competitive.
The business is located in a densely populated area near connecting village roads, making it easy for local customers to find. The location is also listed on Google Maps, which helps first-time buyers locate the production site.
What this means for small businesses
The study suggests that UD Sinar Jaya’s traditional marketing model is effective for its current scale. However, the researchers believe that carefully adopting digital tools could help the business grow further without losing its local identity.
They recommend that UD Sinar Jaya consider simple online marketing options such as WhatsApp Business or basic social media pages. These tools could expand their customer base beyond Padangsidimpuan without requiring major investment.
The research also highlights the importance of government support for home industries. Training in entrepreneurship, easier access to microfinance, and assistance with equipment could help businesses like UD Sinar Jaya increase productivity and competitiveness.
As lead author Anugrah Sri Widiasyih of Universitas Graha Nusantara Padangsidimpuan notes, “Small food enterprises can be strong and sustainable when they combine quality products, fair pricing, and trusted relationships with their community.”
Key takeaways from the study
1. UD Sinar Jaya produces tauco with a distinctive, less salty taste that matches local preferences.
2. Prices remain affordable at around IDR 34,000 per basket, even when raw material costs fluctuate.
3. Promotion relies on word of mouth, direct sales, and local shop consignments rather than digital marketing.
4. Distribution stays local to control costs and maintain product quality.
5. The business demonstrates that traditional marketing can still be effective for micro-scale food producers.
Author profiles
1. Nova Widia Siregar, S.E., M.M. — Lecturer and researcher at Universitas Graha Nusantara Padangsidimpuan, specializing in small business marketing and community-based enterprises.
2. Sutan Pulungan, S.E., M.M. — Faculty member at Universitas Graha Nusantara Padangsidimpuan with expertise in micro-enterprise development and local economic studies.
3. Anugrah Sri Widiasyih, S.E., M.M. — Senior lecturer at Universitas Graha Nusantara Padangsidimpuan, focusing on marketing strategy, consumer behavior, and UMKM (micro, small, and medium enterprises).
Source
-Article title: “Marketing Study of Sinar Jaya UD.’s Tauco in Padangsidimpuan Angkola Julu District (Padangsidimpuan City)”
-Journal: International Journal of Advanced Technology and Social Sciences (IJATSS)
-Year: 2026
DOI: https://doi.org/10.59890/ijatss.v4i1.160
https://aprmultitechpublisher.my.id/index.php/ijatss/article/view/160
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