The study, conducted through late 2025 and early 2026, examines how Reginda Jamur Crispy, a home industry based in Banjar, West Java, successfully transformed a low-value vegetable into a high-demand snack. These findings are critical because they provide a strategic roadmap for small-scale food producers to adapt to modern consumer shifts toward healthy, locally-sourced functional snacks.
From Side Dish to Premium Snack
Small businesses are the backbone of the Indonesian economy, contributing over 60% of the nation’s Gross Domestic Product (GDP). However, many home industries suffer from "product stagnation," where they rely on a single item that eventually faces market saturation. Reginda Jamur Crispy, which began in 2017 focusing on crispy mushrooms, faced this exact challenge. To stay relevant, the owner pivoted by processing bitter melon (Momordica charantia L.) into a savory snack.
Bitter melon is often avoided due to its intense bitterness, yet it is highly regarded in traditional medicine for its antioxidants, Vitamin C, and polyphenols, which help manage blood sugar. By applying specific processing techniques to neutralize the bitterness while maintaining a crunchy texture, the business turned a culinary challenge into a unique selling point. This diversification strategy does more than just add a new flavor; it insulates the business against fluctuations in the supply or price of other ingredients like mushrooms.
Mapping the Strategy: The Science of Small Business Growth
To understand the mechanics of this success, the Universitas Muhammadiyah Purwokerto researchers utilized a mixed-method approach, combining qualitative interviews with quantitative data. They conducted in-depth sessions with the business owner and surveyed employees to map out the internal strengths and external pressures facing the industry.
The team employed a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) to visualize the business landscape. This was followed by a Quantitative Strategic Planning Matrix (QSPM), a sophisticated tool used to determine which specific business move would yield the highest impact.
Key Findings: An Aggressive Path to Market Dominance
The research placed Reginda’s crispy bitter melon business in Quadrant I of the SWOT matrix, signifying an "Aggressive Strategy" position. With a high internal-external coordinate score, the business is perfectly positioned to use its internal strengths to seize rapidly growing market opportunities.
Significant results from the study include:
- Flavor Differentiation: The unique taste profile of pare crispy serves as a powerful "competitive advantage" that distinguishes the brand from generic snack competitors.
- Raw Material Stability: Bitter melon is available year-round in the Banjar region, ensuring a consistent production cycle and lower logistics costs.
- Market Readiness: There is a rising consumer trend toward "healthy snacking," where buyers look for products that offer nutritional benefits beyond simple calories.
- Operational Hurdles: Despite its potential, the study found that limited capital for modern packaging machinery and a lack of digital marketing depth remain the primary weaknesses to address.
Prioritizing Innovation Over Price Wars
Using the QSPM analysis, the researchers identified the most effective strategy for the business: leveraging the unique taste of pare crispy as a primary competitive advantage. With a Sum Total Attractiveness Score (STAS) of 15.08, this strategy outperformed other options such as simple price reduction or local-only expansion.
"This diversification strategy is proven to increase business competitiveness and support long-term sustainability by meeting the specific needs of health-conscious consumers," stated Nur Faiqoh Izzati and the Universitas Muhammadiyah Purwokerto team in their report. The researchers emphasized that for UMKM to scale, they must move away from competing on price and instead focus on "branding" their products as unique, high-value local innovations.
Real-World Impact and Policy Implications
This research has significant implications for how local governments and academic institutions support the UMKM sector. It demonstrates that expensive high-tech interventions are not always necessary; often, the most effective growth comes from strategic management and creative processing of existing local resources.
For policymakers, the study suggests that financial aid to small businesses should be paired with "literacy in diversification." Helping a business owner understand how to expand their product line can be more valuable than a simple loan. For the community, the success of such industries creates local jobs and provides a stable market for vegetable farmers in the surrounding areas.
Author Profiles
- Nur Faiqoh Izzati, S.P. is a graduate of the Agribusiness Study Program at the Faculty of Agriculture and Fisheries, Universitas Muhammadiyah Purwokerto, specializing in marketing management for local food industries.
- Dr. Dumasari Lumongga, M.S. is a senior lecturer and researcher at Universitas Muhammadiyah Purwokerto with expertise in agricultural sociology and community empowerment.
- Muhammad Amir Biky, S.P., M.P., Watemin, S.P., M.P., and Pujiati Utami, S.P., M.P. are academic experts in Agribusiness at Universitas Muhammadiyah Purwokerto, focusing on the economic sustainability of Indonesian rural enterprises.
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