Indofood Dynamic Strategic

a. PT. Indofood Sukses Makmur, Tbk. is one of the most well-known large companies in
Indonesia. This company is engaged in food and beverage processing which was founded
in 1971 and has branches in almost all regions in Indonesia by declaring a commitment to
produce quality, safe, and halal processed food products for consumption. Aspects of
freshness, hygiene, nutritional content, taste, practicality, safety and halal consumption
have always been Indofood's priorities to ensure excellent product quality. Indofood is
the first food company in Indonesia, and dominates the domestic market through its
various products, including instant noodles, wheat flour, various brands of vegetable oils
and fats, baby food, and snacks. Indofood also produces food seasoning products. Brands
that play an important role in sustaining Indofood's business stability and Indofood's
fundamental strength include Indomie, Supermi, Sarimi and Sakura instant noodles,
Bimoli and Sunrise vegetable oils, Royal Palmia and Simas margarine, Chiki, Chitato and
Jet-Z snacks, food products baby Promina and Sun, as well as soy sauce Indofood and
Plate Lombok. Sources :https://www.indofood.com/
b. Dynamic Strategy of Company
a) Cost and quality
 Quality and price positioning
Indofood's product quality is the world's best quality product, especially in
instant noodle products, which have become worldwide. PT Indofood
Sukses Makmur (PT ISM), Tbk is an instant noodle producer in Indonesia
that produces instant noodles with 40 flavors and several brands. Indomie
is the only Indonesian brand to be included in the top 10 Global Brand
2017 according to the Brand Footprint Kantar World Panel, a research
institute from the WPP Group, the world's leading communications and
marketing agency network. According to research released by Kantar
Indonesia at the end of May, Indomie ranks as the eighth most frequently
purchased brand by households around the world. The global survey,
which is entering its fifth year, was conducted using the Consumer Reach
Point (CRP) metric which measures two variables, namely the number of
 households that buy the brand (penetration) and the frequency of the brand
being purchased by consumers (frequency). The Indofood company
implants Indomie instant noodle products in the minds of Indonesian
consumers that Indomie products are original noodles and belong to
Indonesia. As an original Indonesian instant noodle, Indomie also presents
the Indomie Selera Nusantara variant which comes with the most popular
flavors from various Indonesian specialties. Through this variant, Indomie
introduces this variant as Indonesian culinary tourism. The tagline created
by Indomie is “INDOMIE SELERAKU”, which everyone is very easy to
remember. The Indofood company implants Indomie instant noodle
products in the minds of Indonesian consumers that Indomie products are
original noodles and belong to Indonesia. As an original Indonesian
instant noodle, Indomie also presents the Indomie Selera Nusantara variant
which comes with the most popular flavors from various Indonesian
specialties. Through this variant, Indomie introduces this variant as
Indonesian culinary tourism. The tagline created by Indomie is
“INDOMIE SELERAKU”, which everyone is very easy to remember. The
Indofood company implants Indomie instant noodle products in the minds
of Indonesian consumers that Indomie products are original noodles and
belong to Indonesia. As an original Indonesian instant noodle, Indomie
also presents the Indomie Selera Nusantara variant which comes with the
most popular flavors from various Indonesian specialties. Through this
variant, Indomie introduces this variant as Indonesian culinary tourism.
The tagline created by Indomie is “INDOMIE SELERAKU”, which
everyone is very easy to remember.
 The move toward an ultimate value marketplace
In developing products to become the best consumer good company in the
world, Indofoof develops optimal product and marketing strategies. The
popularity of instant noodle products in various countries is due to their
consistent hard work since Indomie was first marketed to other countries
in 1992. Innovations in terms of quality and taste continue to be developed
 by adjusting the results of research on consumer desires and tastes. With a
wide market to foreign countries, Indofood also develops Indomie flavors
by region. Indomie has released many flavor variants, for example: green
chili fried indomie, satay fried indomie, skipjack fried indomie, rending
fried indomie, etc.
 Outflanking and niching
Indofood, with their flagship product, is targeting by selling products
focused on the lower, middle and upper middle market segmentation. In
addition, the company sets a specific product niche. For example, Indomie
products with fried and gravy variants have a target market for all ages
except infants and toddlers. For the Indomie My Noodlez product variant,
the target market is children. Indomie changes its target market strategy,
the company makes several product innovations that have different
characteristics, namely Indomie Goreng, Indomie Kuah, Indomie Jumbo,
Selera Nusantara, Mi Kriting, Taste of Asia, Indonesian Culinary, My
Noodlez, Real Meat, and the latest is Bite Me. This change was made to
meet consumer desires for Indomie variations.
b) Timing and know-how
 Capturing first-mover advantages
After Indomie was first marketed in 1982, PT Sarimi Asli Jaya produced
instant noodles under the Sarimi brand. Sarimi products were quite
successful and loved by the Indonesian people at that time. And after
considering it as a threat to Indomie products, PT Sanmaru finally decided
to acquire PT Sarimi Asli Jaya in 1984 (the two companies would later
join the Salim Group and form PT Indofood CBP Sukses Makmur A few
years after acquiring PT Sarimi Asli Jaya, namely in 1987, PT Sanmaru
launched instant noodles in the form of a cup branded Pop Mie.After in
1986 PT Supermi Indonesia was acquired by the Salim Group and in 1992
PT Sanmaru was also taken over by the Salim Group..The four instant
noodle products described above officially belong to the Salim Group, and
in order not to be complicated in managing their production and
 marketing, the Salim Group in 1994 merged its instant noodle companies
with its food company PT Panganjaya Intikusuma which was founded by
Suyodono Salim in 1994. Since then, the production of instant noodles has
begun to increase both for the needs of the Indonesian people themselves
and for export purposes, and the four instant noodle products have been
able to achieve success in both local and international markets, especially
Indomie products.
 Creating impediments to imitation
In order to create barriers to the market and also prevent the entry of
competitors, Indofood innovates in the development of both products and
corporate strategies in it. The strategy used by PT Indofood Sukses
Makmur Tbk. is product differentiation as evidenced by PT Indofood
Sukses Makmur Tbk. producing instant noodles in cup form.
Differentiation is related to the presentation of uniqueness (Kuncoro,
2006: 93-97). Opportunities for a company to create uniqueness can be
carried out in all company activities. Many products include services and
most services include product elements, creating uniqueness is really just a
matter of imagination. The goal of competition is to do something better to
provide what buyers are looking for, in a way that allows the company to
gain a competitive advantage and beat competitors in the competition. The
core of the company's competitive strategy consists not only of internal
initiatives in delivering superior value to customers. But it also includes
offensive and defensive actions to deal with competitors' attacks, actions
in mobilizing resources to improve long-term competitiveness and market
position, and efforts to respond to any current market conditions. Product
differentiation carried out by PT Indofood Sukses Makmur Tbk. carried
out to win the competition to dominate market share. Low cost leadership
is evidenced by PT Indofood producing instant noodles at a lower price
but using the same raw materials as others, for example supermi.
 Transformation or leapfrogging
 PT Indofood CBP Sukses Makmur Tbk (ICBP) began to transform into an
aggressive company in launching new production. The presence of new
products plus the strengthening of selling prices will strengthen the growth
of the company's financial performance going forward. Quoted from
Investor.id, Deutshce Bank Verdhana Securities Indonesia analysts Reggy
Susanto and Adi Putra said that the evidence for Indofood CBP's
transformation was evident from the launch of 10 new products in the last
four months, namely three instant noodle products and seven other snack
products. The number of products launched was recorded as the largest in
the history of the company. The company launched 10 products as a form
of fundamental change and product transformation
c) Entry barriers
 Building a geographic stronghold by creating and reinforcing entry
barriers
Indofood with its Indomie product segmentation geographically
throughout Indonesia, from Sabang to Merauke. Indofood has the widest
instant noodle distribution network in Indonesia, which penetrates to
almost every corner of the archipelago. The number of stock points
(warehouses) has been aggressively expanded since 2005, so as to provide
wider market penetration through the supply chain and delivery. Stock
warehouses are placed in areas that have many retail outlets, including
traditional markets, so that each warehouse can serve each geographic area
in the shortest possible time.
 Targeting the product market strongholds of competitors in other countries
Indofood also does not only market its products in Indonesia, but also in
many other countries such as Singapore, Malaysia, Saudi Arabia, Nigeria,
China, Japan, United States of America, Canada, England, Italy, and
France. In fact, in Nigeria, Indomie has become an instant noodle product
that is very well known and favored by most Nigerians. In the pricing
strategy, Indofood with Indomie prices is relatively economical, in
Indonesia in 2015, Indomie was valued at Rp. 1,550, - per pack or about
 10 US cents. In Australia, in 2009 Indomie sold for 25 cents per pack or
AUD 10 for a box containing 40 packs of Indomie, while in the United
States in 2009, Indomie usually sold for 1 dollar per 3 packs, and can be
found in various supermarkets. Asia such as Lion Supermarket, Marina
Food,
 Competitors react to new hurdles
The reaction of competitors to the development and nomination of
Indofood, especially in Indomie products, is by launching similar products
with lower prices and also tastier products than Indomie. An example is
Sedap noodles from Wings Group products. Mie Sedaap's initial target
was for the consumption of drivers and housemaids. But because the taste
of the oil is good, they then recommend it to the employer. That's what's
happening now. Gradually Mi Sedap began to undermine the market share
of Indofood's noodles. Mie Sedap's initial strategy was to play at a very
economical market price but the noodle seasoning provided was premium
class. The classic strategy is also applied by giving gifts in the form of
plates and glasses. Another major thing that should not be overlooked is
distribution. Although still dwelling in Java and Bali,
d) deep pockets
 The rise of a countervailing power
Indofood's main competitor is Wings with its Sedaap noodle product. Mie
Sedaap is an instant noodle brand produced by Wings Food and is the
second popular instant noodle product in Indonesia. Launched in 2003,
thirty-one years after Indomie. Apart from Indonesia, Mie Sedaap is also
sold abroad, including Malaysia and Nigeria.
From a geographical point of view, it can be seen that Sedaap noodles and
Indomie are competing. In this case, Mie Sedaap uses premium quality
ingredients to win the market. Meanwhile, Indomie develops products
with various flavors and variants that further add to the variety of Indomie
products.
 Large firm thwarts antitrust suit
 Initially, Indofood dominated the production of instant noodles in
Indonesia as well as the world. But now, this dominance ends with the
Mie Sedaap product from the Wings company as a competitor. Indofood
can be said as an indirect monopolistic company because it controlled
almost 100 percent of the instant noodle market before the entry of Sedap
noodles.
 Smaller competitors use courts or Congress to derail deep-pocketed firm
To date, no small company has had a dispute with Indofood, which
incidentally is the largest consumer company in Indonesia. Disputes that
occur in the company originate between other large companies such as
Pepsi etc.
c. Source
https://tirto.id/mi-instant-gurih-pasarnya-sengit-persaingannya-yeZ
https://document.tips/documents/analysis-pesaing-pt-indofood.html
https://benefitsforbody.blogspot.com/2018/05/pt-indofood-cbp-hasil-makmur-tbk.html
https://www.indofood.com/
https://investor.id/archive/product-baru-naikkan-kinerja-indofood-cbp
https://tirto.id/breaking-with-indofood-pepsi-fritolay-dilarang-enter-pasar-ri-gan9
https://hi.fisipol.ugm.ac.id/katalogtesis/strategi-pt-indofood-hasil-makmur-tbk-as-a-
multi-national-company-yang-sedang-berkembang-dalam-kompetisi-global/
http://aninditaayu12.blogspot.com/2016/08/analysis-segmenting-targeting.html
d. I chose PT. Indofood as part of the Dynamic Strategic analysis because the company has
a very broad business scope with products concentrated on consumer needs. In addition,
this company is now a company that has many international awards related to very high
product quality. The credibility of the company does not need to be doubted as a world-
class multinational company.