421 American Journal of Economic and Management Business e-ISSN: 2835-5199 Vol. 4 No. 5 May 2025 Developing Business Model Innovation of Tattoo Business (Case Study: Deadhead Tattoo Studio) Jessica Xaviera Handawi1*, Dina Dellyana2 Institut Teknologi Bandung, Indonesia EmailJ: jessica_xaviera@sbm-itb.ac.id1*, dina.dellyana@sbm-itb.ac.id2 Abstract This study examines business model innovation for Deadhead Tattoo Studio, a female-friendly tattoo studio in Bandung, Indonesia, leveraging the Ten Types of Innovation framework—a novel approach compared to prior studies focusing solely on operational or branding improvements in the tattoo industry (e.g., Due Hatue and Tatutatu’s diversification tactics). While existing research highlights competitive strategies like merchandise and partnerships, this work uniquely integrates the Ansoff Matrix’s Product Development quadrant with the Ten Types of Innovation to systematically identify untapped revenue streams while preserving Deadhead’s core brand identity. Through SWOT analysis, competitor benchmarking (e.g., StabLab’s decentralized management, Rowawi Clinic’s bundled pricing), and semi-structured interviews with stakeholders, the study reveals that Deadhead can enhance sustainability by introducing bundled pricing, flash design books, and piercing services—innovations not yet explored in Bandung’s tattoo market. The findings demonstrate how creative SMEs can balance artistic integrity with scalable growth, contrasting with broader industry studies that prioritize expansion over niche positioning. Key implications include a structured Business Model Canvas for implementation and a call for future research on quantifying the impact of diversification in localized creative sectors. This research contributes to niche literature by merging strategic frameworks to address the unique challenges of tattoo studios, offering a replicable model for similar businesses in emerging markets. Keywords: business development, ten types of innovation INTRODUCTION A tattoo is a design or symbol created by inserting colored ink into the layers of skin. Tattoos can be applied to human or animal skin, and tattoos on humans are a form of art for body modification (DeMello, 2014; Miranda, 2020; Raghavan & Patel, 2024). Tattoos have existed since 3250 BC and were originally created as symbols or markers of national identity, social status, symbols believed to have positive meanings at the time, pride, beauty, or even as identifiers for individuals considered criminals in their era. Tattoos gradually spread worldwide, including to Indonesia, notably among the Dayak tribe in Kalimantan (Ansori, 2018; Suswandari et al., 2022). However, when Protestantism was introduced to Indonesia by Dutch colonists, tattoo traditions were prohibited as they were considered incompatible with the teachings of the religion mailto:jessica_xaviera@sbm-itb.ac.id mailto:dina.dellyana@sbm-itb.ac.id American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 422 (Dubov, 2021). Furthermore, Indonesia’s reputation as a religious country, combined with the New Order era’s policies that prohibited tattoos and associated them with criminality, made tattoos highly taboo. Since the early 2000s, however, Indonesian society has gradually begun to accept tattoos again due to exposure to global cultural influences and shifting social norms (Imray Papineau, 2019). Alongside the development of religious and cultural perspectives, tattoos are no longer viewed negatively in urban communities, although stigma persists in more conservative areas. This gradual acceptance has led to increasing demand for tattoos and the emergence of tattoo service businesses. Indonesians, who once shunned tattoos as taboo, have started to embrace them, particularly among the younger generation. This shift is due to modern individuals being exposed to global culture, influenced by their surroundings, and viewing tattoos as a form of self-expression and artistic appreciation. Some people even have tattoos representing their identity, such as religious symbols or images that reflect their place of origin or family (Sims, 2018; Velliquette et al., 2006). . Of these According to Google, there are 104 tattoo studios in Bandung, only six have been operating for more than ten years, 12 for more than seven years, five for more than five years, and six for more than three years. The rest have either been operating for less than seven years, have no recorded operational history, or are no longer active. This data demonstrates the rapid growth of the industry in Bandung. One studio that has been operating for more than three years is Deadhead Tattoo Studio. However, this rapid growth poses challenges for Deadhead Tattoo Studio to keep up with the evolving landscape and survive amidst the fierce competition in the ever- growing tattoo business. The rapid growth of the tattoo industry in Indonesia, including in Bandung, has been remarkable (Hegarty, 2017; Zulfa & Suraya, 2024). According to data I gathered from Google in October 2024, there are 104 tattoo studios in Bandung, but only six have been operating for more than 10 years, while the rest are either newly opened or no longer active. This presents a challenge for Deadhead to not only survive but also become a leading tattoo studio in Bandung amidst the rapid industry growth. Currently, Deadhead is a strong player in Bandung. However, compared to more prominent tattoo studios in Jakarta or Bali, Deadhead is relatively standard in comparison to studios that continuously innovate in various aspects (Ferré Gras, 2023). Therefore, Deadhead faces the challenge of evolving by introducing new innovations that align with its branding and target market audience (Kim & Mauborgne, 2014). The tight competition in Bandung's rapidly expanding tattoo industry is making it difficult for Deadhead Tattoo Studio to maintain their position in the market. To enhance their branding, make stronger customer relationships, and coming up with innovative ways to run more efficiently are the biggest obstacles to staying ahead of the competition (Gupta et al., 2024; Tandon et al., 2022). Based on Google data, Bandung is home to 104 tattoo studios. Among them, only six have been in operation for over a decade, 12 for more than seven years, five for more than five years, Jessica Xaviera Handawi, Dina Dellyana 423 and six for more than three years. The others are either newer establishments, lack documented, or have not been on operations (Dai & Wells, 2004). This shows the rapid expansion of the tattoo industry in Bandung (Riyadi, 2025; Tristina, 2025). Deadhead Tattoo Studio, with over three years in operation, is part of this growth. However, the fast paced development of the industry presents the significant challenges for Deadhead if they are able to adapt to the business dynamics and remain competitive in this crowded tattoo business. According to the observations, some of the most popular tattoo studio (based on their instagram’s followers and studio’s activities) also have other supporting business activities, like for example Due Hatue studio in Bali also open a customized furniture with their iconic ornaments that are often used in their tattoo design, Revolver studio runs coffee shop in their studio to gain more profit and adding their unique selling point, Emerald studio have piercing service in their studio, and Inkrare studio have tattoo removal services. This study aims to identify tailored innovation strategies for Deadhead Tattoo Studio to strengthen its market position, evaluate how branding innovations affect customer engagement and retention, analyze operational plans that improve client satisfaction and business growth, and compare the studio’s practices with competitors in Indonesia to uncover competitive advantages and improvement opportunities (Cinthya & Rustiadi, 2023; Mayendra, 2024). This research presents a novel integration of the Ten Types of Innovation framework with the Ansoff Matrix’s Product Development strategy to systematically innovate Deadhead Tattoo Studio’s business model, distinguishing it from prior studies that focused mainly on operational or branding enhancements. Unlike previous cases—such as Due Hatue's merchandise expansion, StabLab’s decentralized artist autonomy, and Tatutatu’s tourism-driven collaborations—this study combines strategic tools with qualitative insights from SWOT analysis, competitor benchmarking, and interviews to develop a holistic and replicable innovation model. Key innovations include flash design books, bundled pricing, structured mentorship, and personalized client experiences within a female-friendly space, offering a multidimensional and scalable approach for creative SMEs in emerging markets. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 424 RESEARCH METHODS ..... This research employed a qualitative approach to analyze Deadhead Tattoo Studio’s business challenges, generate innovative strategies, and develop an actionable business model. The methodology combined SWOT analysis to assess internal and external factors and semi-structured interviews with the studio’s team and customers (guided by a value proposition framework) to gather insights on innovation opportunities and challenges. Narrative analysis interpreted interview data, identifying key themes related to strategic positioning, while triangulation Jessica Xaviera Handawi, Dina Dellyana 425 (comparing stakeholder insights, competitor data, and industry reports) ensured validity. Ethical considerations included anonymized responses, informed consent, and secure data storage. The findings informed actionable strategies to enhance business growth and competitive advantage in Indonesia’s tattoo market. RESULT AND DISCUSSION Analysis A business framework called the 10 Types of Innovation is used to analyze both the internal and external business models. This framework is the right choice because it breaks down in detail the different types of innovation a company applies. In the next paragraph, more explanation about the internal and external analysis that has been conducted will be elaborated. StabLab Profile Stablab is a tattoo studio located in Kemang, Jakarta, established in June 2023. The studio was founded by Ferryan Aulia, also known as Stabby, and it currently has five tattoo artists and one apprentice, including Stabby himself. Stablab is known for its fun and playful vibe, making the studio feel more like a creative playground than a traditional tattoo shop. The artists are friendly and relaxed, which helps customers feel comfortable and at ease during their tattoo appointments. While the studio mainly focuses on fineline tattoos, each artist brings their own unique style, adding more variety and personality to the work done at Stablab. Innovation Tactics From an interview conducted to Ferryan Aulia for as known as Stabby, the founder of Stab Lab, his answers were put in 10 types of innovation business model. From his interview, it is known that there are 11 innovation tactics. Overall, Stab Lab tattoo studio is built to make room for the artists to work and create their art with their own style and pricings. With their playground look studio interior, Stab Lab wants to make clients feel welcomed with their friendliness. They make sure every artist will make the clients feel comfortable and make every tattoo process a collaboration between the artist and the customers. Different with Due Hatue that is pretty idealistic with the tattoo design, Stab Lab lets customers breakdown what they want and Stab Lab’s artists will customise the design for the clients. And not only selling tattoo service, StabLab also has piercing service, selling tattoo aftercare kit, and soon they will have tattoo removal service. In the future, Stabby hoped that he could bring the studio into a bigger business scale, such as a place for artists to gather and create art other than tattoo, like paintings and sculpture. They hoped the studio would expand to be a place for the artists community. Here are the explanations for each tactics that they had implemented in their studio: a. Profit Model 1. Flexible Pricing: Stab Lab is flexible by letting the artists set their own pricing but also maintaining the bottom line of the price. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 426 "We allow the artists to set their own rates, but we set a bottom line." said Ryan in the interview. b. Network 1. Collaboration: Even though they have not done collaborating externally yet, they have the plans to work with brands in the future. But somehow they are already making collaboration internally with their in-house artists for merchandise. "We haven't done any external collaborations yet, just merch collabs with artists in the studio, but we plan to collaborate with other brands in the future." said Ryan in the interview. c. Structure 1. Decentralized Management: Artists have the freedom to create but still contribute to the studio branding. "We want to turn the studio into an active creative space, even beyond tattooing. A collective space for creating." said Ryan in the interview. d. Process 1. Process Efficiency: Tattooing is seen as a collaboration between artist and client, streamlining the design process and building mutual trust. "A tattoo is a collaboration between the client and the artist. We try to listen to what they want and translate it into a visual style we like, so we can meet in the middle." said Ryan in the interview. 2. Lean Production: They focus on simplified and personalized tattoos without delivering it with delays. But still they let the artists work freely and quickly. This tactics were seen through the artist autonomy and custom work mentioned through the interview. said Ryan in the interview. e. Product Performance 1. Customization: Every tattoo is specially made for each person inspired by the client’s story and preferences. Other than to make it unique and personal, as well to keep the originality. "A tattoo is a collaboration between the client and the artist... it's more about the artist’s preferred style." said Ryan in the interview. f. Product System 1. Complements: Other than tattoos, Stab Lab also offers piercing services and tattoo aftercare kits. They also plan to offer laser tattoo removal in the future. "Piercing, tattoo aftercare and piercing aftercare. We have even considered offering laser tattoo removal." said Ryan in the interview. g. Service 1. Personalized Service: Tattoos are created based on the client’s references and ideas, and then crafted according to the artist’s own style. Jessica Xaviera Handawi, Dina Dellyana 427 "We listen to what the client wants and turn it into a visual that fits our style."said Ryan in the interview. h. Channel 1. Non-traditional Channels: Stab Lab connects with clients via Instagram and shows their existence through Google Reviews. i. Brand 1. Values Alignment: The studio breaks the traditional intimidating image of tattoo studios by creating a playful and friendly atmosphere. "A studio with a fun vibe... our tattoo studio is playful and less intimidating just like a playground." said Ryan in the interview. j. Customer Engagement 1. Personalization: The artists are encouraged to be engaged with the clients through the whole tattoo process, from the consultation, design, and aftercare process. They also make sure the clients are satisfied and comfortable. "Customer trust is the core of the business... once they trust us, they'll follow whatever we suggest." said Ryan in the interview. Tatutatu Profile Tatutatu started in 2019, founded by Kane and two of his partners. They decided to start their own tattoo business because at that time, it was difficult to find work in existing tattoo studios, as job openings in the tattoo industry were mostly for close connections only. Located in the heart area of Canggu, Tatutatu quickly gained success and popularity by building a strong brand known for high-quality tattoos, lots of styles, and a friendly atmosphere. The studio is not just a place to get a tattoo, it’s also a welcoming spot where clients can hang out and feel at home. Most of Tatutatu’s clients are foreign tourists visiting Bali, and the studio has been smart in taking advantage of business opportunities by collaborating with other tourism related businesses in the area. Innovation Tactics From an interview conducted to Kane, the founder of Tatutatu, his answers were put in 10 types of innovation business models. From his interview, it is known that there are 17 innovation tactics. Overall, Tatutatu is different from the other two studios elaborated above, because if Stab Lab and Due Hatue is only by appointment, Tatutatu also welcomes walk-ins. Located in the heart of Canggu, Bali makes Tatutatu have a slightly different business focus. Other than making personalized tattoos with a very friendly environment, Tatutatu also has several other profit American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 428 streams. Having a tourist-heavy customer base makes them have the idea to partner with local businesses like food and beverages business, dental clinic, and other tourism places. They are open for several types of partnerships like trade for benefits or monthly payment. For example they are giving dental clinics and food or drink vouchers for every client and in return the team gets free dental treatment from the clinic and free food and drinks once in a while. And they also have a TV in the living room that lets local businesses play their business ads on their TV in exchange for a monthly rate. Other than partnerships with other businesses, Tatutatu also has production houses to make their own contents and also open for projects for external businesses as well by using their tattoo artists as talents. In the future, Kane wished to make Tatutatu to become not only a tattoo studio but also an exhibition art space for any artists to showcase their art. a. Profit Model 1. Bundled Pricing: Tatutatu offers deals made of several things bundled in one price. Such as combining aftercare kits, F&B vouchers, and discounts for several tattoos done at once. "There's a promo for 3 small tattoos for 1.5 million... tattoo + free consultation... tattoo aftercare, and F&B, dental, and other vouchers." said Kane in the interview. 2. Ad-supported: Brands are welcomed to collaborate with Tatutatu by promoting their ads in the studio. "There are some TV displays for playing ads from local brands... we give them the product, make a video, and play it on the TV." said Kane in the interview. 3. Freemium: Tatutau previously charged consultations but then they changed it now to free consultations to attract more clients. "Now we give tattoos with free consultation, because it used to be paid." said Kane in the interview. b. Network 1. Alliances: Tatutatu partners with local businesses such as F&B, dental clinics, tourism businesses, and other artists to expand their services. "Because we are located in the middle of a touristy place, it is pretty often for local businessed like F&B and even a dental clinic came to our studio asking to collaborate with us. We are also open to collaborate with other artists." said Kane in the interview. 2. Supply Chain Integration: They collaborate with suppliers from the external side for products like aftercare kits and other goods. "Income doesn't just come from money, but also from treatments and facilities provided by other people." said Kane in the interview. c. Structure 1. Decentralized Management: They have a brand manager who is taking care of the studio’s operations, developing the brand identity, and giving artists creative space. Jessica Xaviera Handawi, Dina Dellyana 429 "We have a brand manager to help view and maintain the brand from a broader perspective." said Kane in the interview. d. Process 1. Localization: They target tourists in Bali and they make their studio experience according to the tourist's preferences. "We position ourselves as a tourist-friendly place." said Kane in the interview. 2. Strategic Design: Not only as a tattoo studio, they also make the studio as a creative space with hangout spots, art displays, and exhibition areas. "We don’t want to just be a tattoo studio, we want it to be an art space... a space for other artists too." said Kane in the interview. e. Product Performance 1. Customization: Tattoos are designed based on the client’s preferences or client’s inspirations based on important moments. "They don't think of tattoos as a big deal, just a one-hit moment to remember something current, such as when covid strikes people tend to get a covid tattoo, and when Trump was elected in the United States they made a Trump tattoo." said Kane in the interview. 2. Environmental Sensitivity: Tatutatu wants to lead and inspire Bali’s tattoo industry to use ecofriendly equipment. "We want to be a pioneer in Bali’s tattoo studios for waste sorting, ink needle usage, etc. — all eco-friendly." said Kane in the interview. f. Product System 1. Modular System: Tattoo projects were ended by a photography and video shoots session. Tatutatu’s content creator team have amazing and engaging result that other local businesses are interested to use their service to make contents for their own brands using as well their tattoo studio background and their tattoo artists as the talent. Therefore Tatutau created bundled creative packages. "We have a strong content creator team that other businesses are willing to pay us to make content for them using our tattoo studio background and tattoo artists as talent, so funny enough now we are becoming a production house too." said Kane in the interview. g. Service 1. Superior Service: They offer free drinks, stickers, snacks, and make sure the tattoo artists stay present with clients. "Free drinks, stickers, candies... tattoo artists should never leave the client alone, they need to company and keep chatting with them." said Kane in the interview. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 430 h. Channel 1. Go-Direct: Tatutatu connects directly via Instagram, TikTok, and WhatsApp Business. "We have Instagram, TikTok, bookings through WhatsApp Business." said Kane in the interview. 2. On Demand: Clients can walk in without booking an appointment. "People can just walk in without booking."said Kane in the interview. 3. Flagship Store: Their studio is also a creative venue and art gallery other than being a tattoo space. "We want to make it into an art space and exhibition... some even want to hold fashion shows in the studio." said Kane in the interview. i. Brand 1. Brand Extensions: They support other activities such as art exhibitions, video ads, collaborations, and even fashion shows. "We’ve already done video ads in the studio... fashion shows... art curation."said Kane in the interview. j. Customer Engagement 1. Community and Belonging: They create a creative community that connects tourists and local artists through art experiences. "We are also a hangout space for clients , our visitors are mostly tourists and artists. So we want to build a space for creators." said Kane in the interview. Rowawi Clinic Profile Rowawi clinic is a family legacy of dermatology cilinic and has stood since 1960 for three generations. Dr.Yudha is one of 6 dermatologists available in Rowawi Clinic and he is the participant of the interview for Rowawi Clinic. Rowawi Clinic maintains their focus on medical first over aesthetics and prioritizes patient health over the profit as the core of their business model. The clinic also makes sure the treatments will be dependent on the patients needs rather than the trends. The clinic is located in Jalan Cibadak, Bandung and has a big building with modern, very clean, and aesthetic interior looks, which makes patients feel very comfortable being there. Innovation Tactics From an interview conducted to Yudha, the owner of Rowawi clinic, his answers were put in 10 types of innovation business models. From his interview, it is known that there are 17 innovation tactics. Overall, Rowawi clinic puts medical urgency first than aesthetic purposes, which makes a fast turnover of customers is the ideal situation. Rowawi clinic has been running since 1960 and has an excellent reputation until now, which makes their clinic still very busy even though they are Jessica Xaviera Handawi, Dina Dellyana 431 only counting on mouth to mouth marketing. Not only for medical treatments and consultations, Rowawi clinic also offers spa, nail care, and tea lounge. Rowawi clinic also keeps up with the newest technology for online booking systems and medical records. a. Profit Model 1. Bundles Pricing: Rowawi have bundle prices for several services like laser combined with injectables for better result and cheaper option. "Yes, like 4x laser, or laser + injectables. The best-selling one is laser + profhilo because the results are consistent and everyone benefits from it." said Dr.Yudha in the interview. 2. Flexible Pricing: The price is customized to each patient’s condition and treatment plan. "We tried selling packages like other clinics, but it didn’t really work. Our core isn’t selling. When conditions change, the package often becomes irrelevant to the new complaint." said Dr.Yudha in the interview. b. Network 1. Complementary Partnering: Rowawi makes partnerships with other businesses to expand their services. "There’s a tea lounge area, though it’s not managed by us directly. There’s also a small salon for manicure-pedicure and cream baths, and a spa for relaxation massages." said Dr.Yudha in the interview. c. Structure 1. Competency Center: The clinic is using standardized medical protocols and they also have specific training for the staff. It is shown through how they prioritize medical reasons mentioned throughout the interview. 2. IT Integration: Online medical records, online booking, and patient management are used in their clinic. They use remote consultation if either the patient or the doctor cannot come themselves to a face to face consultation. d. Process 1. Lean Production: They prioritize quick turnaround from clients while doing proper care because for them the faster the client healed the better their service is. "Quick patient turnover is encouraged, but we still try to maintain good service, even if it’s not a luxury level." said Dr.Yudha in the interview. 2. Process Automation: Patients can consult through WhatsApp. "Every patient can send complaints through WhatsApp. If it’s about health, the doctor will evaluate and solve it via WA, or ask them to visit again if needed." said Dr.Yudha in the interview. e. Product Performance 1. Focus: They focus on solving real medical problems rather than offering aesthetic treatments. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 432 "We really prioritize medical aspects. Even though most treatments are aesthetic, we don’t treat patients as money makers."said Dr.Yudha in the interview. 2. Customized: Treatment is personalized and adjusted based on the client’s need and condition so there are no standard packages. "Every client has a different condition that needs tailored medical care." said Dr.Yudha in the interview. f. Product System 1. Complements: They provide additional services such as spa, tea lounge, and nail care. 2. Modular Systems: They combined several treatments according to the client’s needs and conditions. "We combined several treatments based on the client’s needs to boost a better result, for example laser combined with injectables packages." said Dr.Yudha in the interview. g. Service 1. Total Experience Management: They care for the patients from beginning to end while making sure they are comfortable with their service’s flow, treatments, building’s hygienic and environment. "First, from a clean and comfortable building, then we make sure the service flow isn’t confusing." said Dr.Yudha in the interview. h. Channel 1. Go-Direct: Rowawi earns patients mostly from word of mouth and has been around since the 1960s. "We’re thankful that the clinic has existed since the 1960s and across generations, so word of mouth still works best." said Dr.Yudha in the interview. i. Brand 1. Values Alignment: They are committed to their business core and their mission, which is to have accurate and ethical medical service. "We still focus on health. The goal isn’t to gain as much profit as possible from aesthetics."said Dr.Yudha in the interview. 2. Transparency: They make sure the patients are educated properly about the treatments they are going to have and what to expect. "Doctors educate patients and communicate openly." said Dr.Yudha in the interview. Jessica Xaviera Handawi, Dina Dellyana 433 j. Customer Engagement 1. Personalization: Each treatment is adjusted according to the client’s needs, and clients are also approached properly. "Every patient has a different condition that needs adjusted medical needs." said Dr.Yudha in the interview. 2. Community Building: They maintain relationships with the patients even across generations. "We’ve had patients since decades. Our base is built on loyalty and trust." said Dr.Yudha in the interview. Business Solution To keep up with the fast changing times, Deadhead can't just stay still and do nothing. Deadhead needs to keep innovating, creating new ideas, and improving what already exists to stay ahead and not fall behind competitors who are growing quickly. By analyzing internal conditions and external innovation framework, it is now clear what should Deadhead improve to get better and what should be added to gain more profit streams. Before creating the draft of the new 10 types of innovation, Ansoff Matrix was used to create a clear and strategic growth plan. It helps Deadhead to get the best strategy for their growth, and reduces the risk of choosing the wrong strategy. From four matrices, Deadhead suits the Product Development matrix, which introduces new services, packages, and products while keeping the same market as before, since the main purpose is also to add new profit streams. Finding a new market will be more challenging since Deadhead’s business core still needs to be strengthened. Adding a new market could be done after it has a strong brand identity, firm business core, and stable operational systems. Ten Types of Innovation Framework The draft of the new 10 types of innovation framework were discussed with Deadhead team members to see which could work and which should be skipped. And here is the result of the final framework. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 434 Figure 1. New Deadhead Innovation Tactics From the framework above, there are 23 tactics that are possible for Dead Head to implement in their business. Some tactics are completely new which are marked in red title, and some tactics are still the same from the previous framework. The tactics will be elaborated on the paragraph above: 1. Profit Model a. Freemium Some tattoo studios charge extra for consultations, design, or retouching. However, Deadhead wants clients to feel comfortable and not see the studio as just chasing money. That’s why consultations are free, design costs are already included in the final tattoo price, and retouching is offered as a guarantee if any part of the tattoo needs improvement. b. Bundling Pricing Unlike the old tactic where the tattoo aftercare balm was sold separately, Deadhead's new approach is to include a standard aftercare balm with every tattoo session. This makes clients happier since they save money and don’t have to worry about buying aftercare separately. However, the free balm will be a standard quality, and for those who want a more advanced formula with extra benefits, Deadhead will still offer premium aftercare products for sale. 2. Network a. Complementary Partnering This tactic has been done before, such as collaborating with the clothing brand Eotes for a limited edition collection with Deadhead, and working with Ayokboss and Ziato Gelato, where clients received free products from these food brands during a specific month. Moving forward, Jessica Xaviera Handawi, Dina Dellyana 435 Deadhead is open to collaborating with other brands to increase brand awareness and create additional profit streams. b. Supply Chain integration For this tactic, Deadhead will expand the range of products sold in the studio to create additional profit streams. Like offering a more complete and premium tattoo aftercare kit, special skincare products for tattooed skin, and official Deadhead merchandise. 3. Structure a. Competency Center Just like Deadhead has done before by mentoring junior artists to help them grow and master professional tattooing skills, this can now be expanded on a larger scale. The mentorship program will be made more formal and structured, with a fixed schedule, a clear learning syllabus, and well defined rules, which can lead to a more effective and professional training experience. b. Organizational Design One of Deadhead's biggest challenges has been an operational system that puts too much burden on the tattoo artists. Instead of focusing on their art, they also have to handle logistics, manage artist schedules, plan marketing, manage finances, communicate with external partners, and create tattoo content. By hiring a studio manager and a content creator, the workload will be reduced, and the artists are able to focus on their craft while the studio grows more efficiently and rapidly. 4. Process a. Process Efficiency Similar to what Deadhead has been doing, many customers only want a small tattoo, which often doesn't match the effort required for tattoo preparation and results in low profit margins. However, some of these clients frequently return to get other small tattoos. To make this more efficient, Deadhead introduced bundled pricing, such as offering 2-3 small tattoos at a discounted price compared to purchasing them individually or a "bring a friend" bundle, where customers who come together on the same day get a special deal. b. Process Automation There is a challenge where artists struggle to respond to customer messages quickly. To solve this, Process Automation Tactics will be implemented using WhatsApp and instagram auto reply. When a client starts a chat, they will receive an automated greeting message guiding them to send their desired tattoo design, size, color, and preferred appointment date. This will make better communication and make the booking process more efficient. c. Lean Production For this tactic, artists can save time on designing each tattoo by creating flash designs. Flash designs are pre-made tattoo designs that clients can choose from with little to no adjustments, making the tattoo process faster and more efficient. But, Dead Head will still continue to accept fully custom designs for clients who prefer a more personalized tattoo. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 436 5. Product Performance a. Customization Similar to previous tactics, Deadhead always creates custom designs based on each client's vision, translating their stories into tattoo art. Another reason for this approach is to make exclusivity, so no two clients end up with the same tattoo. This also helps avoid copyright issues that could arise from using someone else’s design. b. Focus This tactic can be implemented by creating a book that contains a collection of flash designs from Deadhead artists, released quarterly throughout the year, with each edition focusing on a different theme. Releasing a flash design book can help increase the number of clients, as many potential customers want a tattoo but struggle to decide on a design. This flash book will make it easier for them to choose, and each design will be sold only once, to the first buyer, to keep it exclusive. 6. Product System a. Complements Similar to the previous tactic of selling tattoo aftercare balm, Deadhead will now offer a more advanced tattoo aftercare kit. Since the standard aftercare balm is now included with every tattoo purchase, the focus will shift to selling higher-= quality, more complete, and more varied aftercare kits with premium ingredients for clients who want extra care for their tattoos. b. Extensions To increase profit streams, Deadhead plans to introduce new services in the studio. The most relevant service to tattoos is piercing, which will be the first addition. However, in the future, Deadhead remains open to other ideas for adding complementary services. 7. Service a. Loyalty Programs To keep clients loyal to Deadhead, launching a membership card would be a great strategy. Clients will receive a stamp for each tattoo purchase, and once they reach 5 or 10 stamps, they can redeem rewards such as discounts or free aftercare products. b. Total Experience Management To make the customer experience better, this tactic focuses on improving studio hospitality. Clients who are getting tattooed or waiting will be provided with candy, drinks, snacks, and blankets for added comfort. Artists will also be encouraged to engage with clients, ensure they feel at ease, and provide the best possible service, making the overall experience more enjoyable and welcoming. Jessica Xaviera Handawi, Dina Dellyana 437 c. Personalized Service From the one on one consultation between the client and the artist, to the customized tattoo design, and through the tattooing process, everything will be made personalized to ensure a unique and meaningful experience for each client. d. Guarantee Just like the previous tactic, Deadhead always provides free tattoo retouch as a guarantee if the tattoo results are not optimal, so that customers are always satisfied and keep the tattoo on high quality. 8. Channel a. Non traditional Channels Just like the previous tactic, Deadhead is already active on various social media platforms like Instagram, and also using Google Reviews and WhatsApp for communication. However, Deadhead will expand the channels by creating Instagram Reels content and adding TikTok as a new platform to reach a bigger audience. b. Pop-up presence Deadhead has previously hosted pop-up tattoo events at several locations and mostly cafes, like Kuro Koffee, Gion Izakaya, Pollen, and Strings. In the future, Deadhead plans to expand collaborations and organize more pop-up tattoo events in new locations or maybe new cities. 9. Brand a. Values Alignment Deadhead positions itself as a tattoo studio that breaks the traditional stigma of tattoo shops being dark, hidden, and intimidating. Instead, Deadhead is located in a public, accessible space, with a bright and comfortable interior. Deadhead has mostly female artists which makes female clients feel more comfortable getting tattooed by other women. b. Brand Extensions To increase brand awareness and reach more audience, Deadhead can collaborate with other brands or artists, creating unique partnerships that expand its visibility and attract new customers. 10. Customer Engagement a. Status and recognition With higher pricing compared to other studios in Bandung, Deadhead positioned themselves as an exclusive tattoo studio with high quality, professional tattoo work. Deadhead wants the clients to have pride in their tattoos, knowing they are getting a premium experience and artwork from Deadhead. b. Community Brand American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 438 To build a stronger connection with customers and increase brand awareness, Deadhead can host art related workshops, such as drawing sessions or tattoo related classes. And Deadhead can also collaborate with other businesses to organize events, creating unique experiences that engage the community and attract a wider audience. Business Model Canvas The Business Model Canvas (BMC) is a tool to help businesses visualize their business model visually. It helps businesses to design, describe, and analyze their business model in a structured and easier way. After the Ten Types of Innovation from Deadhead Studio was structured and made, Deadhead could also structure their BMC for the business owner to see the business model easier and in a more structured way. Here is Deadhead’s final BMC and the explanation for each building block: Figure 2. Deadhead’s Business Model Canvas 1. Key Partnerships: a. Complementary Partnering: Making collaborations with other brands like fashion, F&B businesses for wider promotion and adding profit streams. Collaboration that is already done was with Eotes, Ayokboss, and Ziato Gelato. b. Supply Chain Integration: Offer more products sold in the studio by working together with external suppliers like aftercare kits, merchandise, and currently with a vape brand as well. Jessica Xaviera Handawi, Dina Dellyana 439 2. Key Activities: a. Mentorship Program: Train junior artists a mentorship program but in a formalized way with clear syllabus in order to raise highly skilled tattoo artists. b. Tattoo Design Creation: Continue making customized designs based on the client’s brief. Customization design is needed to make the artwork unique, exclusive, and personalized. c. Pop up Events: Do tattoos outside the studio like in cafes or events to mainly increase brand awareness. 3. Key Resources: a. Tattoo Artists: Deadhead’s tattoo artists are mostly female, all highly skilled, professional, and trained to make clients comfortable and feel welcomed. Each artist has their own style. b. Studio Space: Deadhead has a well designed studio, not intimidating, and female friendly which is located in an easily accessible area. c. Brand Identity: Deadhead maintained a strong, unique,and exclusive brand image that is also friendly and welcoming to clients. 4. Value Propositions: a. Freemium Model: Deadhead offers free consultations, free design fees and free tattoo retouching in order to make sure the client feels satisfied. b. Bundled Pricing: Each tattoo purchase gets a free simple aftercare balm and every client who wants more than one tattoo in a day could get a special bundling price. c. Customization: Designs are made based on each client’s story and preferences to keep exclusivity. d. High Quality: Deadhead focuses on delivering high quality tattoos by also offering high skilled artists and using top quality materials. 5. Customer Relationships: a. Loyalty Programs: A membership card where clients can earn stamps per tattoo, and redeem rewards like discounts or free products after several visits. b. Personalized Service: Offering one on one consultations and making personalized tattoo designs for each client. c. Building Community: Building long term relationships by making workshops and making collaborations with other artists and businesses. 6. Channels: a. Non-traditional Channels: Deadhead are active on Instagram, TikTok, and Google Reviews in order to reach new audiences and also keep engaged with existing clients. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 440 b. Pop ups: Opening tattoo booths in public areas like cafes or events to increase brand awareness and promote Deadhead’s services and products. 7. Customer Segments: a. Tattoo Enthusiasts: Deadhead’s clients are people who value customized, exclusive, artistic, and high quality tattoos. They appreciate clients who can appreciate arts, trusting the process, and wanting meaningful customized designs. b. Female Clients: The studio is specifically female friendly since most of the tattoo artists are women, therefore the studio is a comfortable space for female clients. c. Art Lovers and Tourists: Deadhead aimed at people who enjoy making tattoos and those who're visiting from other areas. 8. Cost Structure: a. Fixed Costs: The operational costs consist of rent for the studio, studio and tattoo utilities, and salary for artists and staff. b. Variable Costs: Marketing, collaboration expenditures with other brands, supplies for tattoos and other products sold at the studio. c. Investments in Equipment: Tattoo equipment and furniture. 9. Revenue Streams: a. Tattoo Services: Getting main revenue from tattoo services. b. Aftercare Products: Selling aftercare kits and other products available in the studio. c. Merchandise Sales: Selling Deadhead’s merchandise like clothing, accessories, and other merchandise forms in the future. d. Workshops & Collaborations: Getting income from hosting workshops, and collaborating with other brands or artists for special events. CONCLUSION This research explored innovation opportunities for Deadhead Tattoo Studio, a female- friendly tattoo studio in Bandung with strong brand values but reliance on a single revenue stream, using the Ten Types of Innovation framework alongside SWOT analysis, competitor benchmarking, and customer interviews. Findings revealed that competitors like Due Hatue and Tatutatu expanded through diversified offerings (merchandise, partnerships), while cross-industry examples like Rowawi Clinic provided additional insights. By applying the Ansoff Matrix’s Product Development strategy, Deadhead can introduce bundled pricing, merchandise, and flash books to enhance competitiveness and long-term sustainability. Future research could examine "The Implementation of Diversification Strategies in Creative Industries," evaluating Deadhead’s new revenue streams, cross-industry applicability, scalability beyond Bandung, and quantitative impact to guide creative SMEs in balancing innovation with business growth. Jessica Xaviera Handawi, Dina Dellyana 441 REFERENCES Ansori, S. (2018). The Fabrication of Local Identity: Marginalization of the Indigenous Dayak Beverage in Central Kalimantan. Kawalu: Journal of Local Culture, 5(2). Cinthya, H., & Rustiadi, S. (2023). Proposed Business Growth Strategy for an Advertising Production Company That Penetrates the Small and Medium-Sized Business Market in Jakarta: A Business Case, Rentjana. Journal of Business and Management Studies, 5(4), 52– 71. Dai, C. X., & Wells, W. G. (2004). An exploration of project management office features and their relationship to project performance. International journal of project management, 22(7), 523–532. DeMello, M. (2014). Inked: Tattoos and body art around the world. Dubov, K. (2021). Journey to the Republic of Indonesia: Review & Analysis. Ferré Gras, M. (2023). Desarrollo de una web segura. Gupta, S., Guha, S., & Kumar, S. (2024). EXPRESS: Advancements in Inventory Management: Insights from INFORMS Franz Edelman Award Finalists. Production and Operations Management, 10591478241310224. Hegarty, B. (2017). ‘No nation of experts’: kustom tattooing and the middle-class body in post- authoritarian Indonesia. The Asia Pacific Journal of Anthropology, 18(2), 135–148. Imray Papineau, É. (2019). Hey! Ho! Let’s Go [Back to Islam]!: Exploring the Interplay of Punk and Piety in Java, Indonesia. Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press. Mayendra, A. (2024). Proposed Strategy For Maintaining A Small-Family-Business Enterprise In A Competitive Property Market. Journal of Syntax Literate, 9(9). Miranda, M. D. (2020). Tattoos and tattoo inks: Forensic considerations. Wiley Interdisciplinary Reviews: Forensic Science, 2(1), e1360. Raghavan, S., & Patel, D. (2024). The Intriguing Art of Bite Mark Tattoos: An Analytical Study of Symbolism and Self-Expression. Arab Journal of Forensic Sciences & Forensic Medicine, 6(2), 158–166. Riyadi, F. (2025). Social Change and Legal Compliance Among Tattoo Removal Participants in the Brave Wani Hijrah Kudus Community. Sims, J. P. (2018). “It Represents Me:” Tattooing Mixed-Race Identity. Sociological Spectrum, 38(4), 243–255. Suswandari, S., Armiyati, L., & Azid, N. (2022). Local wisdom of dayak ethnic groups in central kalimantan, Indonesia. ETNOSIA: Jurnal Etnografi Indonesia, 7(1), 67–85. Tandon, U., Khovanskaya, V., Arcilla, E., Hussein, M. H., Zschiesche, P., & Irani, L. (2022). Hostile ecologies: Navigating the barriers to community-led innovation. Proceedings of the American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 442 ACM on Human-Computer Interaction, 6(CSCW2), 1–26. Tristina, N. (2025). Deconstruction Of Female Tattoo Artists From A Postmodern Feminist Perspective. Commsphere of Media and Society, 1(1), 64–82. Velliquette, A. M., Murray, J. B., & Evers, D. J. (2006). Inscribing the personal myth: The role of tattoos in identification. In Research in Consumer Behavior (hal. 35–70). Emerald Group Publishing Limited. Zulfa, Z., & Suraya, R. S. (2024). Exploring the Role of Tattoo Discourse in Matotonan Village: Mentawai Tattoo Batik as an Effort to Preserve Tradition in Mentawai. Journal of Pragmatics and Discourse Research, 4(1), 78–89. Copyright holders: Jessica Xaviera Handawi, Dina Dellyana (2025) First publication right: AJEMB – American Journal of Economic and Management Business