Track: Modeling and Simulation

Abstract

This study aims to obtain empirical findings on "how-to" a product innovation based on the recent trends that can improve sales performance. This study uses a quantitative approach to the object of research in sales performance and product innovation at Chandelle Co., a business unit of the craft industry that produces aromatherapy. The research strategy uses action research through a series of plan-act-observe-reflect stages for eight months in a business incubator. The research participants, among other customers, are respondents who will assess the results of action research conducted by the owner as researchers. Data analysis uses a linear regression equation with SPSS20 statistical software on the results of questionnaires distributed randomly to 100 customers of Chandelle Co. as the unit of analysis. After going through a series of action research cycles, it was found that product innovation based on the recent trends was able to have a significant positive impact on Chandelle Co's sales performance through the actions steps that consist of idea generation, idea screening, concept testing, market strategy analysis, product development, market testing, commercialization, monitoring and evaluation. The results of this study are useful for aromatherapy entrepreneurs in the creative industry, especially in the craft subsector, to find the right product innovations that can significantly increase their product sales.