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This paper discusses the development of new products of Micro, Small and Medium Entreprises (SMEs) to identify what attributes are considered by consumers, as well as combinations of attributes that need to be analyzed into the main preferences of consumers. The purpose of this research is to increase the added value and competitiveness of SMEs through product innovation. The object of this study is banana chips produced by SMEs from the province of Lampung which it considered to be unique souvenirs of the province. The research data were collected by distributing questionnaires in Jakarta which has heterogeneous population, in order to develop banana chip’s marketing and increase its market share in Indonesia. Data processing was performed using conjoint analysis and cluster analysis. Segmentation was performed using conjoint analysis based on the importance level of attributes and part-worth of level attributes of each cluster. Finally, characteristics and consumer preferences of each cluster will be a consideration in determining the product development and marketing strategies.This paper discusses the development of new products of Micro, Small and Medium Entreprises (SMEs) to identify what attributes are considered by consumers, as well as combinations of attributes that need to be analyzed into the main preferences of consumers. The purpose of this research is to increase the added value and competitiveness of SMEs through product innovation. The object of this study is banana chips produced by SMEs from the province of Lampung which it considered to be unique souvenirs of the province. The research data were collected by distributing questionnaires in Jakarta which has heterogeneous population, in order to develop banana chip’s marketing and increase its market share in Indonesia. Data processing was performed using conjoint analysis and cluster analysis. Segmentation was performed using conjoint analysis based on the importance level of attributes and part-worth of level attributes of each cluster. Finally, characteristics and consumer preferences of each cluster will be a ...