HANOI UNIVERSITY

FALCUTY OF MANAGEMENT AND TOURISM

INDOMIE

TUTORIAL: 2
TUTOR: NGUYỄN TUẤN ĐẠT
GROUP: 3
DƯƠNG NGUYỄN MINH KHUÊ: 2204000058
NGUYỄN THỊ QUỲNH ANH: 2204000008
ĐỖ VŨ CẨM VÂN: 2204000103
ĐÀO VŨ THU PHƯƠNG: 2204000084

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 Summary Executive
With its tagline "Flavor, Fun, and Convenience," Indomie has become a prominent instant noodle
brand, dominating the Indonesian market and gaining international recognition. Our report begins
with an overview of Indomie's history and its role in introducing instant noodles to Vietnam. We then
analyze the current market landscape, conduct a SWOT analysis to assess the brand's performance
and identify areas for improvement. Additionally, we explore the Marketing Mix Strategy (4Ps) to
outline how Indomie can achieve its goals effectively. The report concludes with an Action Program
detailing implementation steps, monitoring procedures, and evaluation mechanisms to ensure
successful strategy execution.

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 TABLE OF CONTENTS

I. Company Introduction 4
I.1. Company Overview 4
I.2. Product 4
II. Current Marketing Situation 4
II.1. Internal Environment 4
II.2. Micro Environment……………………………………………………………………………5
II.3. Macro Environment……………………………………………………………………………7
III. SWOT Analysis………………………………………………………………………………8
IV. Main Issues……………………………………………………………………………………11
V. Marketing Objectives…………………………………………………………………………11
VI. Marketing Strategies…………………………………………………………………………12
VII. Action Program………………………………………………………………………………13
VIII. Illustration For Proposed Action Program……………………………………………………13
IX. Monitoring And Control……………………………………………………………………14
X. Conclusion 15

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I. Company Introduction

I.1. Company overview

Indofood, a leading manufacturer of instant noodles, boasts 16 production plants globally. With over
28 billion Indomie packets produced annually, the brand is exported to more than 90 countries.
Launched in June 1971 by PT Sanmaru Food Manufacturing, Indomie was later acquired by PT
Sarimi Asli Jaya, owned by Bogasari flour mills, in 1984. The two companies merged as PT Indofood
Sukses Makmur in 1994. In 2010, Indomie debuted a new design in Indonesia on January 3. This
design became popular in export markets during the mid-2010s.
I.2. Product
Four flavors—Mi goreng (dried fried noodles with special flavor), Mi goreng rasa Iga Penyet (dried
fried noodles with spicy beef rib flavor), Mi Goreng Pedas (stir-fried noodles with spicy beef rib
flavor), and Mi goreng Rendang (spicy beef fried dry noodles)—were introduced by Indomie to the
Vietnamese market in 2013. At the moment, Indomie is conveniently available in all Vietnamese
supermarkets. One may even argue that among Vietnam's favorite kind of dry fried noodles is
Indomie.

II. Current Marketing Situation

2.1. Internal environment (4Ps Review)

2.1.1. Product:

Core Customer value: convenience, affordability, and consistent taste across various flavors of
options that Indomie provides the customers.

Second layer - the Actual product represents the quality level, features, and packaging.
+ Quality level: Indomie, always known as one of the most famous international instant
noodles brands, has been favored by customers because of the fact that their products are made of
strictly selected ingredients, using the best quality flour and fresh natural Indonesian spices.
+ Features: the brand provides Variety of flavors and product lines for customers which help
them to choose more easily (e.g., Indomie Chicken, Indomie Onion Chicken, Indomie oriental,
Indomie pepper soup, etc.). The brand meets the needs of busy people who prefer quick and easy
preparation.
+ Packaging: Unlike other brands, Indomie cleverly designs its cover with a black dish of
noodles, while other brands use white or colored dishes. Due to this, the brand recognition is
increased to customers.

2.1.2. Price

Each product generally has a similar price, from 5k to 6k. In addition, Indomie’s segment focused
mainly on youngsters and people with low incomes, and according to it, 65% of Vietnamese citizens
are living in rural areas. Thus, Indomie prices must be affordable to match the needs and pockets of
customers' value as well as be competitive in comparison with other brands in Vietnam. In the pricing
strategies, Indomie targeted on remaining competitive on price to attract board customers; especially

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ones with low income and youngsters. Furthermore, the price of each product does not vary, basically
the same.

2.1.3. Place

Indomie mainly focused on the indirect marketing channel, which is selective distribution by a one-
level distribution channel. Thus, customers can easily find Indomie instant noodles in most
convenience stores, and supermarkets; for example: Circle K, Big C, and Winmart,.... Customers
could reach online retailers through e-commerce accessibility such as Shopee, Lazada,...

2.1.4. Promotion

To promote the products, Indomie has provided various special offers for customers. For instance,
giving away a box of Indomie noodles if customers can collect enough seven letters I N D O M I E in
each pack of noodles. Moreover, Indomie has also cooperated with office supply brands to increase
brand recognition.

2.2. Micro environment

The microenvironment of Indomie marketing refers to the factors that directly affect Indomie's ability
to create, communicate, and deliver value to its customers. These factors are closely controlled by
Indomie and its immediate partners.

2.2.1. Suppliers

Raw materials such as wheat flour, palm oil, and spices are signature features of Indomie. Therefore,
Saudi Arabia and Edo State are the two most important materials suppliers of Indomie.
Moreover, negotiating favorable prices and ensuring consistent supply are crucial. Packaging
suppliers also play a role in the design and functionality of Indomie's packaging, impacting brand
perception and product preservation.

2.2.2. Intermediaries

Indomie has a wide network of sellers and distributors across Vietnam. For distributors, they are
responsible for providing Indomie products to retailers and wholesalers. Moreover, Indomie reaches
Vietnamese consumers through various retail channels, including e-commerce and traditional markets
such as Shopee, Lazada, Circle-k, Big C,... Convenience stores, traditional markets.

2.2.3. Customer analysis

a. Segmentation
Types of segmentation Segmentation criteria Segmentation target segment
Geographic Region Vietnam
Areas Urban/ Rural
Demographic Gender Male/Female
Age All ages
Income Low/ Middle
Psychographic Social class Lower class, working-class

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 Lifestyle
Behavioral Benefit desired Time and cost - saving, flavourful meals.

In terms of Geographic and Demographic, Indomie products are allocated in both Urban and Rural
areas in Vietnam due to the brand’s ability to provide a wide range of products, making it suited to
satisfy people of all ages with different incomes, from low to middle.

With regard to Psychographic and Behavioral, people from all groups (especially those from the
lower and working class) can approach to advantages that Indomie provides; for instance, time
productivity, cost, and flavorful meals.

b. Targeting
Indomie has differentiated its products from others by “Indian flavor”. As mentioned, Indomie is a
brand from Indofood, a company from India, a country located in Asia that has some similar features
in culture to Vietnam. The most significant reasons that Indomie products set apart from other
brand’s products lie in the sauces with strong flavors affected by Indian cuisine which are made of
salt, sugar, soy textured protein, dried chili, garlic powder, nutmeg powder, yeast extract, and so on

c. Positioning
Indomie claims that:” Our noodles are made from carefully selected ingredients, the best quality
flour, and fresh spices from the natural resources of Indonesia.”
Indomie distinguishes itself from other domestic brands in Vietnam by its Indian flavors with strong
fresh spices and qualified flour and affordable prices. In the Vietnamese instant noodles market,
Indomie stands out by its prices and varied flavorful taste; compared to SamYang - a Korean brand,
also a foreign brand in Vietnam similar to Indomie. Moreover, both Indomie and Samyang have done
their best. While Samyang is considered a high-end product with high quality and high price, Indomie
is favored by customers with low income because of its low prices but high level of quality.

d. Competitors
Indomie needs to monitor and differentiate itself from competitors through marketing strategies and
product innovation since Indomie is facing competition from both local and international instant
noodle brands in Vietnam such as Hao Hao, 3mien, Samyang. By understanding competitors and their
strengths, Indomie can position itself effectively in the Vietnamese market. They can focus on

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highlighting their unique selling points, like specific flavors or brand heritage, while remaining
competitive on price and potentially offering healthier options to cater to evolving consumer
preferences.

e. Publics
In Vietnam, publics for Indomie include government bodies regulating food safety and labeling,
health and wellness organizations concerned with nutrition, and media outlets that influence public
perception. In 2023, Taiwan and Malaysia.. found banned ingredients in some products of Indomie
which led to controversy in Vietnam, since Indomie is familiar to Vietnamese consumers.
Public
Indomie has successfully navigated the Vietnamese market more effectively, leveraging its strengths
and addressing challenges to grow its market presence.

2.3. Macro environment

2.3.1. Political

In Vietnam, the political system and consistent policies have been evolving which are much more
stable, making it attractive to foreign investors to invest more capital that will promote businesses to
develop production and expand market share. However, the legal system is incomplete, which causes
legal loopholes so that mischievous people can do profiteering.

2.3.2. Economic

Overall, Vietnam's economy presents a promising picture. The country has achieved remarkable
growth and has been transitioning towards a more service-oriented economy since 2020. However,
addressing income inequality, infrastructure development, and climate change will be crucial for
sustained economic prosperity. According to the World Bank, Vietnam has been a development
success story whose GDP per capita increased 3.6 times, reaching almost US$3,700. Poverty rates
(US$3.65/day, 2017 PPP) declined from 14 in 2010 to 3.8 percent in 2020.

2.3.3. Social

Instant noodles are deeply integrated into Vietnamese culture, serving as a convenient, affordable, and
sometimes even nostalgic food choice. The Vietnamese way of consuming instant noodles often
involves customization and creativity, reflecting the country's rich culinary traditions. Due to the busy
lifestyle with long working hours, the Vietnamese tend to choose instant meals, for example, instant
noodles since they are able to save time but consume beneficial products. According to WINA, in
2022, Vietnam consumed about 8.5 billion packages of instant noodles, ranking 3rd in the world, and
ranking 1st in the world in terms of the average number of packages consumed per capita, on average
each Vietnamese person eats 85 packages of noodles/year.

2.3.4. Technology

By implementing automation in quality control systems and utilizing advancements in food science,
Vietnamese producers can optimize production efficiency and ensure high-quality products in the

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competitive instant noodle market. For example, HaoHao, a domestic brand, has increased
automation levels and invested in modern lines with high capacity, enabling production of nearly 600
packages of noodles per minute. Additionally, the company has installed advanced quality control
systems, such as weighing and X-ray machines, as well as a laboratory with modern equipment for
quick, accurate, and objective testing of raw materials and finished products. These measures aim to
deliver the most delicious, safe, and high-quality instant noodle products to consumers. However, the
cost of these technologies can be a disadvantage.

III. SWOT Analysis

3.1. Strengths

- Strong brand recognition: Indomie is a well-established brand in the world, known for its taste
and quality -a pioneer in Indonesia's instant noodle industry. Currently present in more than 100
nations worldwide, including those in Australia, Canada, America, New Zealand, throughout Asia,
Africa, and the Middle East. With over 20 billion packets of noodles consumed annually, it makes
sense that Indomie is one of the most ubiquitous noodle tastes in the world.
- Specially processed: Indomie noodles are processed by air drying rather than frying in oil like other
types of noodles. The amount of fat absorbed in fried noodles is 85g, corresponding to about 30% of
the amount of fat needed for a person at 2000 calories per day. Thus, Indomie is appealing to people
who do not like to eat fat or are prescribed a low-fat diet
- Distribution network: Indomie has been successful in penetrating the market, urban as well as
rural. It has had distribution plans suitable for each locality and hierarchy in the supply chain such as
street stores, mobile vending carts, distributors, etc. to bring its products to the market
- Versatility: The noodles can be easily customized with local ingredients, catering to preferences
and culinary traditions. For example, an Australian restaurant combines Indomie noodles with unique
toast. Even the Indomie webpage features a recipe section that uses Indomie noodles and is regarded
as quite delectable and appropriate for most consumer tastes.

3.2. Weakness

- Not diverse in types: For now, Indomie's primary focus is on making fried noodles. Despite the
wide variety of noodle types across competitors:
+ Hao Hao: water noodles, fried noodles, salty noodles, vegetarian noodles
+ Gau Do: water noodles, salty noodles, vegetarian noodles
+ Omachi: water noodles, fried noodles
- Public criticism: Instant noodles, including Indomie, are often criticized for their high sodium
content and preservatives, which may deter health-conscious consumers. These unfavorable public
remarks have a detrimental impact on consumers' trust and reputation, which lowers sales.
- Recall product (2023): Health officials had detected a compound called ethylene oxide in
Indomie's "special chicken" flavor noodles. Ethylene oxide is a colorless, odorless gas used to
sterilize medical equipment and spices. According to the US Environmental Protection Agency, this
gas can contribute to an increased risk of cancer.
- Packaging methods and designs are not diversity
+ Packaging methods: There is just one method for bag packing. Meanwhile, on the market,
many other noodle brands are packaged in bags and boxes (convenient for people who want to take
them away).

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 + Designs: The product name of Indomie is less appealing since it is printed in a smaller font
than the flavor name and is located in the left corner of the noodle packaging. One restriction that has
to be addressed by Indomie is the lack of emphasis on the brand name.
On the other hand, rival companies like Omachi, and Hao Hao all emphasize their brand
names in the center of their eyelash packaging, giving them a similar visual element. Customers will
become more familiar with the brand as a result of the product's increased uniqueness,
recognizability, and ease of recall.

3.3.Opportunities

- Large consumer market

According to the World Instant Noodles Association, Vietnam ranked fifth globally in 2019 for instant
noodle consumption, with an estimated 5.43 billion servings. This represents a 4.4% increase from
the previous year. With 56 servings per person, Vietnam has the highest average annual food
consumption per capita. This consistent ranking over the past five years indicates the popularity of
instant noodles among the Vietnamese population. Approximately 90% of Vietnamese households
rely on instant noodles, making them an essential staple.
- Product quality and individual wellness are becoming more vital for consumers. 96% of
Vietnamese consumers are concentrating on being healthier, according to polls. To address the
increasing demands of customers for nutrition and health, Indomie now has the chance to provide
high-quality, health-conscious instant noodle products.
- Huge market potential but entering this market for new businesses is challenging

3.4. Threads

- Rising production costs: Increasing production costs, such as raw materials or packaging, could
squeeze profit margins for Indomie, especially amidst global supply chain disruptions or inflationary
pressures.
- High competition: There are over 50 producers in the Vietnamese instant noodle market, Acecook
Vietnam, Masan Consumer, Uniben, and Asia Foods are the four "big players" that control the
majority of the market. As per Retail Data, during the first nine months of 2020, this group accounted
for almost 88% of the output and 84% of the revenue in the instant noodle market.
- Substitutes: While instant noodles maintain a significant position in the market for convenience
foods due to their ease of preparation and affordability, The alternatives to instant noodles include

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various food options that consumers might choose to satisfy their need for quick, convenient, and
affordable meals:
Ready-to-Eat Frozen Products: This category includes frozen pizzas, burgers, or other frozen meals
that only need to be heated in a microwave or oven.
Food Delivery Services: With the rise of the sharing economy, food delivery services such as
GrabFood, offer quick access to a wide range of dishes from local to international cuisines without
the need for personal preparation.

IV. Main issues

Indomie faces challenges in Vietnam related to its product offerings. The limited flavor options fail to
cater to the diverse tastes of Vietnamese consumers, which puts the brand at a disadvantage and
lessens its appeal. This lack of variety also impedes cultural exploration, thereby stalling innovation.
Moreover, concerns over product safety have eroded consumer trust, leading to a switch to other
brands and negative media coverage. Stricter regulations and increased costs have further exacerbated
the situation. Additionally, Indomie's packaging does not resonate with local preferences, failing to
differentiate itself in a crowded market. These issues not only result in direct sales losses and market
share decline but also threaten long-term brand loyalty and market presence in Vietnam.

V. Marketing Objective

5.1. Product Strategy Objective

Introduce three new product lines specifically tailored for the Vietnamese market: a low-sodium
option, a vegetable-enriched noodle variant, and a local flavors series.
Next, launch at least one product from each new line within the next 12 months, totaling a minimum
of three new products. The development phase is completed within 6 months, with the launch phase
spread over the following 6 months. The full range should be available in the market by the end of the
12 months.
Then, conduct market research within the next 2 months to identify the most popular local flavors and
specific health concerns related to sodium and vegetable intake. Product development by month 3,
aiming to complete initial prototypes within 4 months. Collaborating with local chefs or food
influencers for insights and endorsements of the local flavors series. Pilot test the products in select
markets by month 7 for immediate consumer feedback, allowing for any necessary adjustments.

5.2. Price Strategy Objective

Achieve a 5% reduction in production costs through efficiencies and optimizations without

sacrificing product quality.
- Reduction of overall production costs by 5%. Within the next 18 months.
+ Audit current production processes within the next 3 months to identify areas for cost
savings.
+ Explore alternative sourcing for raw materials and negotiate better terms with suppliers by
the end of month 6.
+ Implement process improvements and monitor their impact on costs quarterly, adjusting
strategies as necessary to achieve the 5% cost reduction goal within the 18-month timeline.

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5.3. Place Strategy Objective

Increase distribution coverage by 20%, particularly focusing on online marketplaces and underserved
rural areas.
- 20% increase in distribution points, including online and rural areas. Expand distribution within 24
months.
+ Identify key regions and online platforms lacking Indomie's presence within the first 3
months.
+ Establish partnerships with online retailers and local distributors in target areas by month 6.
+ Roll out distribution to new areas incrementally, aiming for complete coverage by the 24-
month deadline.
+ Utilize direct feedback from new distribution areas to fine-tune product offerings and
marketing strategies.

5.4. Promotion Strategy Objective

Revamp packaging for greater brand visibility and launch a targeted marketing campaign highlighting
the new healthier and local flavor product lines.
- Complete redesign of packaging across all products and execution of a comprehensive marketing
campaign within 6 months. Implement the new packaging design and start the marketing campaign
within the next 6 months, with the campaign running for at least 3 months.
+ Work with a design agency to create new packaging that emphasizes the Indomie brand and
appeals to health-conscious consumers, to be finalized within 3 months.
+ Develop a marketing campaign that includes social media engagement, influencer
partnerships, and traditional advertising, focusing on the health benefits and local relevance of the
new product lines.
+ Coordinate the campaign launch with the availability of new products in the market to
maximize impact.
+ Measure campaign effectiveness through consumer surveys, social media analytics, and
sales data, adjusting strategies as necessary to meet the objectives.

VI. Marketing strategy (new planned 4Ps)

6.1. Product

- Diversification and Innovation: Introduce a range of new products that cater to the Vietnamese
palate, including water noodles, vegetable-enriched options, low-sodium and preservative-free
varieties, and local flavor profiles (e.g., Pho, Bun Bo Hue). Focus on health by incorporating whole
grains or offering gluten-free options.
- Quality and Safety enhancements: Implement rigorous quality control measures to ensure safety,
addressing concerns like the presence of ethylene oxide. Certify products with health and safety
standards (ISO, HACCP) and prominently display these certifications on packaging.

6.2. Price

- Competition-based pricing strategy: To maintain a competitive edge, this involves considering

both the value of healthier options and the cost sensitivity of the target market. By offering enhanced
features, Indomie can create more customer value, which may justify higher prices.

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- Value-Based Pricing:
+ Value-added pricing: For products with enhanced features (reduced sodium, added
vegetables), employ a value-based pricing strategy that reflects the added benefits to the consumer,
ensuring that the price increases are justified by the perceived value.

- Segmented pricing:
+ Product-form pricing: by raising new characteristics of Indomie, there must be a new
version of Indomie's noodles for those who care about healthier products. Therefore, the price of this
new version can be set a bit higher to reach customer’s preferences.

6.3. Place

- Expanded distribution network: Strengthen the distribution by collaborating with local retailers,
supermarkets, and online marketplaces to improve shelf visibility and accessibility.
- Direct-to-consumer channels: through an e-commerce platform, allowing for customized orders,
subscription models, and exclusive online products.

6.4. Promotion

- Rebranding and packaging redesign: Undertake a rebranding initiative focusing on health and
local culture. Redesign packaging to be visually appealing, with prominent brand placement, clear
communication of product benefits ("Low Sodium," "Rich in Vegetables"), and use eco-friendly
materials to appeal to environmentally conscious consumers.
- Integrated Marketing campaigns: Launch comprehensive marketing campaigns that utilize
traditional media, social media, influencer partnerships, and public relations efforts for brand image.
Focus on transparency, showcasing the steps Indomie has taken to address health concerns and
highlight the introduction of new, healthier product lines.
- Community engagement: Engage with the Vietnamese community through corporate social
responsibility (CSR) initiatives focused on health and nutrition (sponsoring local health awareness
events, contributing to community vegetable gardens).

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VII. Action program

VIII. Illustration for the proposed action program

7.1. Product

- Prototype Samples: Create demo versions of the new product flavors (RICH IN VEGETABLE)
and formulations (WATER NOODLE VERSION), used in taste tests and focus groups.

- Visuals for Prototypes: High - quality images and detailed descriptions in brochures and online
platforms showcasing the unique attributes.

7.2. Promotion

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- Posters and In-Store displays: Vibrant posters that highlight the health benefits and local flavor
profiles of the new products, including QR codes linking to detailed product information and
customer reviews.
Television commercials (TVC): Story of Indomie's commitment to health and local tastes, featuring
scenes of Vietnamese families enjoying the new noodle varieties.

7.3. Social Media

- Schedule daily posts on platforms like Facebook, Instagram, and TikTok, showcasing new products,
behind-the-scenes R&D efforts, and CSR activities.
- Launch hashtag campaigns #TasteofVietnam to encourage user-generated content, where customers
share their meal creations using Indomie's new products.

7.4. Pricing Strategy

- Pricing list design differentiates between the classic product lines and the new, premium options,
explaining the value provided by the enhanced features like added vegetables or reduced sodium.

7.5. Store Layout and design

- Virtual Tour: Offer a 3D virtual tour of a redesigned store layout that prioritizes the new Indomie
products, showing optimized shelf placement and promotional displays.

7.6. CSR Activities

- Interactive Installations: Design interactive installations at events where participants can learn
about noodle production, and nutritional facts, and even create their noodle flavors.

IX. Monitoring and Control

8.1. Key Performance Indicators (KPIs):

8.1.1. Product Development

- Time to market for new products.

- Consumer feedback on new product varieties.
- Achievement of ISO and HACCP certifications by the deadline.

8.1.2. Pricing Strategy

- Market share changes post-repricing.

- Profit margin stability

8.1.3. Distribution

- Percentage increase in distribution coverage.

- Online sales growth from the direct-to-consumer platform.

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8.1.4. Promotion

- Increase in brand recognition and recall measured through consumer surveys.

- Engagement rates (likes, shares, comments) and conversion rates from digital campaigns.
- Attendance and feedback from CSR events and community engagements.

8.2. Monitoring:

- Monthly review meetings: To review progress against KPIs, budget usage, and timeline adherence.
- Annual Audit: Comprehensive review of strategy effectiveness, future planning.

8.3. Contingency planning:

- Set aside a contingency budget of 10% ($155,000) for unforeseen costs or to bolster any area
lagging in KPIs.

X. Conclusion

Indomie's marketing strategy effectively meets the evolving preferences of its diverse customer base
through digital marketing, social media engagement, and strategic partnerships, enhancing brand
visibility and consumer connections. The introduction of new flavors inspired by traditional
Vietnamese cuisine underscores Indomie's commitment to culinary innovation and cultural diversity,
catering to a global audience looking for both convenience and authentic taste experiences.
Additionally, Indomie's influencer marketing campaign leverages the influence of local personalities,
improving brand image and extending market reach. This approach highlights the importance of
social media in shaping consumer preferences and bolstering brand loyalty. Indomie’s commitment to
excellence and adaptability to market trends ensures its continued popularity in Vietnam, offering
innovative flavors that resonate with local tastes.

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REFERENCE

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