Branding Strategies for Coffee Products Based on Local Terroir: A Case Study of Argotirto Coffee

Abstract

Background: The Indonesian coffee sector continues to grow rapidly, driven by specialty coffee demand and strong regional identities shaped by terroir, while effective branding plays a key role in differentiating products and influencing consumer perceptions in an increasingly competitive market. Aims: This study aims to analyze the implementation of branding strategies for coffee products based on local terroir and to examine how these strategies contribute to building brand equity and enhancing the competitiveness of Argotirto coffee. Study Design: This research adopts a qualitative case study approach, focusing on an in-depth exploration of terroir-based branding practices within the context of a local coffee enterprise. Place and Duration of Study: The study was conducted in Argotirto Village, Sumbermanjing Wetan District, Malang Regency, Indonesia. Data collection took place over a period of approximately 3–4 months, covering observation, interviews, and documentation processes. Methodology: This study employs a qualitative research method using a case study design. Data were collected through in-depth interviews with coffee farmers group, local entrepreneurs, and stakeholders, complemented by field observations and document analysis. The data were analyzed using thematic analysis, involving data reduction, data display, and conclusion drawing. The study integrates concepts of terroir, local branding, and digital branding to develop a comprehensive analytical framework. Results: The findings reveal that terroir-based branding is effectively implemented through the integration of geographical origin, environmental characteristics, and local cultural narratives into the brand identity of Argotirto coffee. Storytelling, visual branding, and digital platforms play a crucial role in communicating terroir values to consumers. The results indicate that such strategies enhance perceived authenticity, strengthen brand trust, and increase purchase intention. Furthermore, terroir-based branding contributes significantly to the development of brand equity by improving brand awareness, brand associations, and customer loyalty. However, challenges such as limited branding knowledge, inconsistent communication strategies, and resource constraints were also identified. Overall, the study highlights that terroir is not only a production factor but also a strategic asset in building competitive advantage for local coffee products in the digital era. Conclusion: This study concludes that terroir-based branding is a strategic and effective approach for enhancing the value and competitiveness of coffee products, particularly in the case of Argotirto coffee. The findings demonstrate that the integration of local terroir elements—such as geographical origin, environmental characteristics, and traditional cultivation practices—into branding strategies creates a distinctive product identity that is difficult to replicate by competitors.The study also reveals that the use of storytelling, visual identity, and digital platforms significantly strengthens the communication of terroir values to consumers. These strategies contribute to the development of perceived authenticity, brand trust, and emotional attachment, which in turn positively influence purchase intention and customer loyalty. As a result, terroir-based branding plays a crucial role in building brand equity, including brand awareness, brand associations, and long-term customer relationships.