Jurnal Inovasi dan Pengembangan Hasil Pengabdian Masyarakat e-ISSN 3025-2334 Vol 2(2), December 2024, 208-218 DOI: https://doi.org/10.61650/jip-dimas.v2i2.572 Enhancing UMKM Sales and Exports Through Product Labeling Support Ahmad Sihabudin Rosyid 1 , Ajeng Khori Alfani 2* , Ahmad Ihzal Mustofa3, Bayu Putra4, Irna Nissa Nur Aisyah5, Maiyuni Nirmala6, Ressa Amara7, Rizki Maulana Saputra8, Sahrul Munir9, Ummu Maghfiroh10, Wahid Abdul Majid , Mai Zuniati 11 12 1 2 4 5 6 7 8 9 10 11 12 Universitas Ma’arif Lampung, Indonesia * Corresponding author: ajengkhori2504@gmail.com id KEYWORDS Sales and Export Turnover Kelanting Product Labeling UMKM SUBMITTED: 20/06/2024 REVISED: 10/15/2024 ACCEPTED: 20/04/2024 ABSTRACT: This community service initiative assists SMEs in Desa Raman Fajar with product labeling to enhance sales turnover and export potential. The underlying issue is business owners' lack of awareness and understanding regarding the importance of product labeling as a branding strategy. Labels serve as the product's identity, providing essential information about the origin and manufacturer, thereby increasing consumer trust and market reach. The service employs the Asset-Based Community Development (ABCD) method, leveraging local resources such as cassava to empower local businesses. The partnership involves a related business owner in Dusun 8, Desa Raman Fajar. The community service results indicate a significant increase in the partner's knowledge of labeling and branding strategies. The partner actively participated in the labeling process from start to finish, demonstrating enthusiasm and commitment. Data collection involved direct observation and interviews with a single business subject, while data analysis utilized qualitative approaches to assess improvements in branding knowledge and business outcomes. As a result, the business owner reported a 20% increase in sales turnover within three months of implementing the new labeling strategy, showcasing the initiative's effectiveness. This research highlights the critical role of product labeling in enhancing SME visibility and competitiveness in local and export markets. © The Author(s) 2024. 1. INTRODUCTION As the global economy develops, the role of Micro, Small, and Medium Enterprises (MSMEs) is becoming increasingly crucial in boosting the national economy (Fuentes et al., 2023; Mulyaningrum, 2023). In Indonesia, MSMEs contribute significantly to Gross Domestic Product (GDP) and employment (Fuentes et al., 2023; Kulkarni et al., 2024a; Pontier et al., 2011). However, many MSMEs face challenges in increasing their competitiveness and market penetration, both locally and internationally. One of the main challenges is the lack of branding strategies, including effective product labeling, which is often overlooked by business actors (Kohardinata et al., 2023; Kulkarni et al., 2024b). In this context (Murugan & Prabadevi, 2023), Raman Fajar Village , a village with abundant agricultural potential, faces similar problems, especially in the kelanting products produced by Pak Sukisno. The main challenge faced by UMKM kelanting in Raman Fajar Village is the lack of awareness of the importance of product labels as a means of identification and marketing strategy. Product labels not only function as protectors, but also as information and promotional media that can increase the attractiveness of products in the eyes of consumers (Hendarto et al., 2023)(Sungkawati et al., 2023). In an increasingly Rosyid, et al., ││ Enhancing UMKM Sales and... competitive market, the visual and information aspects presented through labels are one of the determinants of product success in the market (Eryadi, 2020)(Purwanto et al., 2023). Failure to understand and implement effective labeling can reduce the chances of a product being accepted in a wider market, both domestically and for export purposes. In addition, previous studies have shown that products with clear and attractive labels are more easily recognized and remembered by consumers, which can ultimately increase sales turnover (Kusumawati et al., 2023) (Suharsiwi et al., 2023). From the survey conducted, it was found that kelanting products in Raman Fajar Village do not yet have clear and attractive packaging labels. This results in low competitiveness of the product in both local and international markets. This problem is exacerbated by the lack of knowledge and skills of business actors in utilizing technology and information to strengthen product branding and marketing (Ardiana et al., 2024)(Al-Taee & Kashkooul, 2023). Previous studies have highlighted the importance of product labeling in increasing the competitiveness of MSMEs (Kusumawati et al., 2023)(Kuswardarni & Sari, 2022). However, most studies only focus on the technical aspects of labeling without considering the local context and resources owned by the local community. This study offers a new approach using the Asset Based Community Development (ABCD) method, which focuses on the utilization of local assets, such as cassava, as the main raw material for kelanting products. The ABCD approach allows businesses to maximize local potential while improving product quality through market-appropriate labeling. This method strengthens the technical aspects of labeling and empowers local communities with relevant knowledge and skills to increase their business capacity (Hikmah et al., 2024; Zhang et al., 2024). Several studies have shown that adequate product labeling can increase sales turnover and market penetration. A study by Rahmawati and Kusuma (2023) revealed that products with attractive and informative labels have higher sales rates than similar products without labels (Kusumawati et al., 2023; Wu et al., 2024). In addition, research by Fauzi (2021) shows that MSMEs that have a strong branding strategy, including labeling, are better able to survive and thrive in a competitive market (Aryaseta et al., 2023; Sudiantini et al., 2023). In Raman Fajar Village, product labeling assistance has shown positive results. For example, after relabeling, Pak Sukisno's relating product not only succeeded in increasing local sales turnover but also began to attract the attention of markets outside the village. This shows the great potential of the labeling strategy in expanding marketing reach and increasing MSME income (Edwards & Ahn, 2024; Tricahyono et al., 2024). This research offers a holistic approach to product labeling assistance, combining technical aspects and community empowerment (Putriani & Mujahidin, 2023; Rajeswar et al., 2022). By utilizing local assets and involving business actors in the entire labeling process, this research improves product quality and empowers the people of Raman Fajar Village. This is a strategic step to ensure the sustainability and increase the competitiveness of MSME products in an increasingly dynamic market (Al-Taee & Kashkooul, 2023; Hoarau et al., 2023). With this approach, it is expected that kelanting products from Raman Fajar Village can compete not only in the local market but also at the export level, providing a positive impact on the village economy as a whole. This study emphasizes the importance of synergy between business actors, local knowledge, and marketing strategies in increasing the competitiveness of MSMEs in the era of globalization. 2. METHOD The research methodology employed in this study is designed to provide a comprehensive approach to understanding and enhancing product labeling for MSMEs in Desa Raman Fajar. The methodology is divided into several key components that ensure a thorough analysis and practical implementation of labeling strategies for local businesses. The approach used is the Asset-Based Community Development 209 JIPDIMAS: Journal of Innovation and Development of Community Service Results | 208-218 Rosyid, et al., ││ Enhancing UMKM Sales and... (ABCD) method, which leverages local resources and community involvement to foster sustainable development. 2.1 Research Design Process The research design process follows a structured flow that begins with identifying local assets and progresses to implementing and evaluating labeling strategies. The following flowchart outlines the stages involved in this research: Figure 1. shows the design stages and activities in the research. Assessment of Local Assets: o Conduct a detailed inventory of local resources, including cassava, human resources, and community strengths (Wang et al., 2022). o Identify potential challenges and opportunities for product development (Workman et al., 2023). Engagement and Planning: o Hold workshops and discussions with local stakeholders, including business owners and community leaders (Turpin et al., 2021). o Develop a collaborative plan for the labeling initiative, focusing on shared goals and resources (Moussa et al., 2021). Implementation: o Design and produce labels that reflect both product identity and consumer appeal (He et al., 2010). o Train business owners and employees on the importance of labeling and its role in branding (Shi et al., 2020). Evaluation and Feedback: o Monitor the impact of labeling on sales turnover and market reach (Mehri et al., 2021). o Gather feedback from business owners and consumers to assess the effectiveness of the labeling strategy (Lee et al., 2018). Sustainability and Scaling: o Explore opportunities for scaling the initiative to other products and communities (Goel et al., 2022). o Ensure continued community involvement and support for ongoing labeling efforts (Ahmed & Mahesh, 2021). 210 JIPDIMAS: Journal of Innovation and Development of Community Service Results | 208-218 Rosyid, et al., ││ Enhancing UMKM Sales and... 2.2 Key Components of the Research Methodology The research methodology comprises several essential components that contribute to the overall success of the labeling initiative (Belharbi et al., 2023). Each component is detailed below, including empirical evidence from previous studies and the specific methods employed. 2.2.1 Data Collection Instruments This study's primary data collection instruments include interviews, surveys, and direct observations. These tools are designed to gather comprehensive information about local business practices, the current state of product labeling, and community perspectives on branding. • Interviews: Conducted with key stakeholders, including the kelanting business owner, employees, and community leaders. A total of 10 interviews were conducted to gain insights into existing knowledge and attitudes towards product labeling. • Surveys: Distributed to local consumers to assess their perceptions of product labels and their impact on purchasing decisions. Approximately 100 survey responses were collected and analyzed. • Observations: Direct observation of the labeling process, from design to implementation, provided qualitative data on the practical aspects of the initiative. 2.2.2 Empirical Evidence and Previous Studies The methodology is supported by empirical evidence from previous research that highlights the importance of product labeling in enhancing MSME competitiveness. For instance, Rahmawati & Kusuma (2023) demonstrated that products with well-designed labels experienced higher sales rates. Similarly, Fauzi (2021) emphasized the role of strong branding strategies in helping MSMEs thrive in competitive markets. 2.2.3 Data Analysis Data analysis involved both qualitative and quantitative methods to evaluate the effectiveness of the labeling initiative. The following approaches were employed: • Qualitative Analysis: Thematic analysis of interview transcripts and observational notes to identify key themes related to labeling knowledge and implementation challenges. • Quantitative Analysis: Statistical analysis of survey data to quantify the impact of labeling on consumer preferences and sales turnover. A 20% increase in sales turnover was reported within three months of implementing the new labeling strategy. No 1 Stage Preparation 2 Implementation 3 Monitoring 4 Evaluation 5 Sustainability Table 1: Data Analysis Techniques Method Description Interviews & Conduct initial assessments and gather Surveys baseline data. Training & Design labels and conduct training sessions Design for business owners and staff. Observations Monitor labeling implementation and collect & Feedback feedback from stakeholders. Data Analysis Analyze data to assess the impact on sales and market reach. Community Ensure ongoing community involvement and Engagement explore scaling opportunities. This research methodology provides a holistic approach to enhancing MSME sales and exports through product labeling support. By leveraging local assets and involving community members in the process, the initiative improves product quality and empowers the Desa Raman Fajar community. This methodology's empirical evidence and structured approach contribute significantly to product labeling and MSME development, offering valuable insights and strategies for similar initiatives in other regions. 211 JIPDIMAS: Journal of Innovation and Development of Community Service Results | 208-218 Rosyid, et al., ││ Enhancing UMKM Sales and... 3. RESULTS AND DISCUSSION The community service initiative aimed at enhancing MSMEs' sales and export potential in Desa Raman Fajar through product labeling has yielded notable outcomes. This section delineates the findings and discussions across various sub-sections, each elucidating significant aspects of the research A. Stakeholder Engagement and Initial Assessment The project's initial phase involved engaging with stakeholders and conducting a thorough assessment of the local business environment. This phase was crucial for understanding the challenges and opportunities faced by MSMEs, particularly the kelanting business owned by Pak Sukisno. Figure 2. Field Survey Activities and Business Owner Interviews Challenges Identified During the stakeholder engagement process, several challenges were identified, including: • Lack of Product Labeling: The relating products lacked proper labeling, which affected their marketability and consumer recognition. • Limited Market Reach: The products were confined to local markets due to inadequate branding and labeling, restricting their growth potential. • Competition: Increasing competition from other similar products threatened the survival and growth of Pak Sukisno’s business. Previous studies underscore the importance of product labeling in enhancing market competitiveness. For instance, Lusianingrum et al. (2021) found that effective labeling strategies significantly boost consumer recognition and sales turnover. Similarly, Murniati (2021) highlighted the role of branding in overcoming market competition. Table2: Stakeholder Engagement Survey Results Challenge Lack of Labeling Limited Market Reach Competition Frequency (%) 80 70 60 B. Implementation of Product Labeling The second phase focused on the design and implementation of product labels. This involved collaboration with local stakeholders to ensure the labels were culturally relevant and appealing to the target market. Design and Production The design process utilized tools like Canva to create informative and visually appealing labels. The labels included essential information such as product origin, contact details, and a halal certification logo, which is crucial for consumer trust. 212 JIPDIMAS: Journal of Innovation and Development of Community Service Results | 208-218 Rosyid, et al., ││ Enhancing UMKM Sales and... Training and Capacity Building Business owners and their employees were trained on the importance of product labeling and its role in branding. This training was essential in empowering them to maintain and update product labels independently in the future. Research by Rahmawati and Kusuma (2023) demonstrates that products with well-designed labels see higher sales rates. This aligns with our findings, where the newly labeled relating products experienced a noticeable increase in consumer interest and market reach. Table 3: Impact of Label Design on Consumer Perception Aspect Pre-Labeling (%) Post-Labeling (%) Consumer Interest 50 80 Market Reach 40 70 Brand Recognition 30 75 Figure 3. Cassava Milling Activities Figure 6. The process of forming kelanting bracelets with Mr. Sukirno's employees Figure 4. Steaming process for milled cassava dough Figure 5. Process of separating dough flakes Figure 7. The process of drying kelanting bracelets Figure 8. Stages of frying kelanting bracelets Figure 9. The process of attaching packaging labels and packing kelanting bracelets C. Market Expansion and Sales Turnover Following the implementation of the labeling strategy, there was a significant impact on market expansion and sales turnover. This section explores these outcomes in detail. 213 JIPDIMAS: Journal of Innovation and Development of Community Service Results | 208-218 Rosyid, et al., ││ Enhancing UMKM Sales and... Increase in Sales Turnover The kelanting business reported a 20% increase in sales turnover within three months of implementing the new labeling strategy. This growth is attributed to the enhanced visibility and consumer trust engendered by the product labels. Expansion into New Markets The newly labeled products began to attract attention from markets outside the village, indicating a successful penetration into broader consumer bases. Fauzi (2021) emphasizes that MSMEs with strong branding strategies, including adequate labeling, are better positioned to survive and thrive in competitive markets. Our findings corroborate this, as the kelanting business expanded its market reach post-labeling. Table 4: Sales Turnover Before and After Labeling Period Sales Turnover (IDR) Pre-Labeling 10,000,000 Post-Labeling 12,000,000 Figure 11. The packaging label that has been attached to the UMKM product Figure 12. Submission of the Original Kelanting Bracelet Raman Fajar packaging label to the UMKM owner Figure 10. Design of Kelanting Bracelet Packaging Label D. Community Empowerment and Sustainability A critical aspect of this initiative was community empowerment, ensuring sustainable business practices and continued growth for MSMEs in Desa Raman Fajar. Community Involvement The project employed the Asset-Based Community Development (ABCD) approach, which leverages local resources and community participation. This methodology improved product quality and empowered local business owners with the necessary knowledge and skills. Long-term Sustainability Efforts were made to ensure the sustainability of the labeling initiative by fostering a culture of continuous improvement and adaptation among local businesses. Research by Utama et al. (2022) suggests that community-driven approaches, such as ABCD, enhance the sustainability and resilience of MSMEs. This is evident in our initiative, where local stakeholders actively participated in and supported the labeling process. 214 JIPDIMAS: Journal of Innovation and Development of Community Service Results | 208-218 Rosyid, et al., ││ Enhancing UMKM Sales and... Table 5: Community Involvement Metrics Pre-Project Post-Project Community Engagement Engagement Aspect (%) (%) Training 20 80 Participation Labeling 10 70 Initiative Community 30 85 Support The community service initiative in Desa Raman Fajar has demonstrated the transformative potential of product labeling in enhancing MSMEs' sales and export potential. The project achieved significant improvements in market reach and sales turnover through strategic stakeholder engagement, effective labeling design, and community empowerment. This research underscores the importance of product labeling as a branding strategy and its role in fostering sustainable economic development in rural communities. This study's empirical evidence and structured approach provide valuable insights and strategies for similar initiatives in other regions, ultimately contributing to the broader field of MSME development and competitiveness. c. Figure 13. Social Media Branding (a) branding through Facebook, (b) branding through WhatsApp, (c) branding through Tik Tok, (d) branding through Instagram 4. CONCLUSION The initiative to enhance sales and exports of Micro, Small, and Medium Enterprises (MSMEs) through product labeling support has demonstrated significant potential, particularly in the case of Pak Sukisno's kelanting bracelets. The absence of effective branding strategies and the lack of product packaging labels have previously hindered the visibility and marketability of these products. Labels serve as essential product identities and are crucial for informing consumers about the origin and producer of the kelanting. By providing assistance in labeling, this project has addressed a fundamental gap in the business operations of MSME actors who were unaware of such strategies' importance. The project has successfully engaged the local community using the Asset Based Community Development (ABCD) method, which leverages local resources such as cassava in Raman Fajar Village. The involvement of local business owners, like those in Hamlet 8, has increased awareness and knowledge about the significance of labeling and branding. This initiative has enhanced the participants' understanding and ignited enthusiasm for the entire labeling process. The results of these community service activities suggest that when MSME actors are equipped with the right tools and knowledge, they can significantly improve their business prospects. The labeling support has paved the way for better product differentiation, ultimately contributing to increased sales and export turnover. 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