Strategy for developing Indonesian vanilla products to improve the added value

Vanilla is a world-well-known spice product, especially as food and beverage flavoring; however, the availability of (natural) vanilla is too little (less than 1%) to meet the demand for vanilla either industry or household. So far, most Indonesian vanilla is traded as a commodity in the international (export) and domestic markets. For producers who are primarily smallholders, these conditions create business uncertainty and added value. This paper aims to review the strategy of product transformation from general commodities into certified products or branded products by utilizing digital marketing (e-commerce), which leads to the stability of the price of vanilla products (reduced uncertainty), and creates an additional value. The method used in this study is the literature review method. Product transformation requires product development, where certified products must follow particular procedures in production to obtain certification, and branded products require differentiating features in products that consumers appreciate. In addition to product development as a primary strategy is also needed supporting strategies such as proper pricing and promotion. This review implies that there is an opportunity to transform a vanilla product from a commodity to certified and branded products; hence it should become vanilla development agenda.