Brand Positioning of Indomie
Porter’s Generic Strategy
The overall cost leadership is the most appropriate strategy for Indomie (mie goreng) as the dominant market leader in response to the price war competition in the market with their follower and challenger. To compete effectively in price-sensitive market such as instant noodles, Indofood concentrates upon achieving the lowest costs of production and distribution costs with setting its prices at a lower level than its competitors (Kotler, 2003). This is the choice of generic strategy in order to maintaining Indofood as the market leader in instant noodles industry with slightly increase according to the objective in year of 2006, which is 40 percent Indomie as the highest sales percentage brand in Indofood.
According to what stated in Wilson (1997, p.329), “rather it provides management with an opportunity to learn how the triad of technology, management and labor can be used effectively”. Therefore, instead of the large scale economies of Indomie production, stricter controls also are being implemented including better production management to reduce cash tied up in inventory and others of operating costs. After restructuring the operations, from focus on divisional profitability to core product profitability, the management will work in better coordination. In addition, focusing distribution in potential area also will help the cost cutting but still capture the wide market coverage.
Market Targeting
Indomie in general or Indomie (Mie goreng) fried noodle as the substitute product of staple food, has concentrated its product based on the demographic segmentation of people aged older than 5 years old we categorized for all ages, from children, teenager to older. This flavour of Indomie has an extremely wide range of segment’s overall attractiveness, because of the full market coverage in undifferentiated marketing strategy with its mass production product, mass distribution, and mass promotion of one product for all consumers
The overall cost leadership is the most appropriate strategy for Indomie (mie goreng) as the dominant market leader in response to the price war competition in the market with their follower and challenger. To compete effectively in price-sensitive market such as instant noodles, Indofood concentrates upon achieving the lowest costs of production and distribution costs with setting its prices at a lower level than its competitors (Kotler, 2003). This is the choice of generic strategy in order to maintaining Indofood as the market leader in instant noodles industry with slightly increase according to the objective in year of 2006, which is 40 percent Indomie as the highest sales percentage brand in Indofood.
According to what stated in Wilson (1997, p.329), “rather it provides management with an opportunity to learn how the triad of technology, management and labor can be used effectively”. Therefore, instead of the large scale economies of Indomie production, stricter controls also are being implemented including better production management to reduce cash tied up in inventory and others of operating costs. After restructuring the operations, from focus on divisional profitability to core product profitability, the management will work in better coordination. In addition, focusing distribution in potential area also will help the cost cutting but still capture the wide market coverage.
Market Targeting
Indomie in general or Indomie (Mie goreng) fried noodle as the substitute product of staple food, has concentrated its product based on the demographic segmentation of people aged older than 5 years old we categorized for all ages, from children, teenager to older. This flavour of Indomie has an extremely wide range of segment’s overall attractiveness, because of the full market coverage in undifferentiated marketing strategy with its mass production product, mass distribution, and mass promotion of one product for all consumers