Swot Of Indofood Company

Indofood Sukses Makmur TBK

Indofood Sukses Makmur Tbk (Indofood) is one of the biggest foods company in Indonesia. The products of the company itself is prove to be very successful in the market , including instant noodles, wheat flour, branded edible oils and fats, baby foods, seasonings products and snack foods. Nowadays, Indofood is the biggest instant noodles manufacturer in the world, with production capacities of approximately 13 billion packs and 3.6 million tons per annum. In it home country, Indofood already owns the largest distribution network and successfully monopolized 80% market shares of instant noodles.

Supermi, Sarimi and Sakura instant noodles, Bimoli and Sunrise cooking oil, Royal Palmia and Simas margarine, Chiki, Chitato and Jet-Z modern snacks, Promina and Sun baby food products, and the Indofood and Piring Lombok range of food seasonings. These are the main products that build Indofood business stability and Indofood strong fundamentals.

The most well-known and trusted brands of Indofood are Indomie. This instant noodle successfully got the attention of all Indonesia people and became the only one instant noodle products of Indonesia. With monopoly, Indofood continues to benefit from its competitive advantages in Indonesia, such as its low production cost, mainly due to its economies of scale, its extensive distribution, no competitor and a good marketing capability.

The company itself has a Triple “A” production strategies, which are:

Acceptability by focusing on high quality products with strong brand equity and brand loyalty

Affordability by maintaining low cost production through economies of scale

Availability by ensuring the freshness and availability of its products across the country, through strategic manufacturing locations and extensive distribution network

Fact about this company:

пЃµ This company have 34 manufacturing plants which includes 121 instant noodles productions lines to complete all the operations

пЃµ They have about 150000 retail outlets in Indonesia

пЃµ Total employees of more than 60000 people

пЃµ Achievement of the company at 2006, net sales grew 14.3% and net income up to 48.3%

пЃµ Sudono Salim (Leim Sioe Liong) is the CEO of the Salim Group and also owners of Indofood Company.

Taken from: http://www.indofood.co.id/content/index.asp?fuseaction=list_artikel&venue_id=010502&topic_id=1

External Environment

Competitor

This is the main threat for all businesses. A competitor that you can’t control and predict what they will do to kick you out from the market. As a businessman we always need to think about a way to win the market against our competitors. Sometimes it even need to used dirty trick to compete with each other.

The main problem that cause decreasing sales is due to the new competitor. In the past, Indofood has always succeed in monopolized instant noodles market in Indonesia, no competitor can stand again them because they are already a big and strong company in producing and also funding process. It ends when a new instant noodles company appears, it called Mie Sedap. This company products launch with a massive advertisement on TV. In no time, Mie Sedap succeeded at gaining the people's heart. This lead a problem for the Indofood, 1/3 of their loyal customer have already change their brand to Mie Sedap. To counter this new challenger, the marketing teams of Indofood prepare a counter massive advertisement to take back their loyal costumer. There are few things those they already done:

в--Џ Big and huge advertisement campaign

в--Џ Promotion вЂ" Grand Prize Quiz

в--Џ Testimonial of top actress and actors

в--Џ New and innovative products

These 4 steps prove to be successful in stopping costumer from moving their brand. Until nowadays, these two companies still compete between each other in Indonesia market. This competitiveness itself is not so bad, it forces both of the companies to keep improving with a good quality and best price of products.

At this time the marketing team already doing pretty good, they successfully make an advertisement that can “call back” the loyal costumer of Indomie. The designer team also is very fast in research and developing the new innovative products that can suit the costumer tastes. Overall the performance of Indofood team are well done, they are fast at anticipating a new competitor.

I found something that is interesting at the advertisement campaign of Indomie. They are always trying to show the costumers that Indomie are more delicious than any other instant noodles. Nothing wrong with that, but I'm sure that they can get a better result if they can show to the costumers that Indomie are the real tastes of Indonesia noodles in their advertisement. Why? As we know that, Indomie is a very old product of Indonesia, many people are already eating Indomie from their childhood time. With advertisement we can conveying a message to the costumers “Indomie are the noodles that Indonesia people eat from the first time they know about instant noodles”.

Technological Environment

New machine and engine that can produce products faster and more efficient than others are needed in all businesses. Change in way of production because of new machine also can boost the productivity of a company, therefore we must always aware of the advancement in technological states .

Like other companies, Indofood still want to keep growing by producing more products. But they have one big problem, they lack of technology that can support them in producing the new products. This can cause the business to lose it opportunity to maximize their profit.

The problem solves, on the date of 28/02/05 officially Indofood joint