Indomie Noodles

MKTG361 - MARKETING RESEARCH PROJECT (PART 1)

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Table of Contents
1. Introduction.............................................................................................................................. 2
1.1 Company Overview............................................................................................................2
1.2 Definition of Research Statement.......................................................................................3
2. Secondary Data Analysis......................................................................................................... 3
2.1 Literature review.................................................................................................................3
2.2 PESTLE Analysis............................................................................................................... 4
3. Hypotheses development........................................................................................................8
4. Conclusion............................................................................................................................... 8
5. References.............................................................................................................................. 9
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1. Introduction
Indomie Noodles are associated with the company Indofood. Indofood is an Indonesian company
that is famous for its instant noodle brand named as Indomie Noodles. The company is renowned
for its food products offered at the lower prices. The food products offered by the company can
be prepared quickly. Therfore, a large number of working families prefer to purchase the
products offered by the company. The coampny introduced its first product named as “Rasa
Kuah Kaldu Ayam” which is actually chicken flavoured noodles. Since its foundation, the
coampny has obtained a strong brand name because of its instant noodles. The coampny has
covered 72% of thinstant noodle market in Indonesia and is considered as the most popular
noodle brand of the country (Akpabio, 2008). Today, the company has expanded its buisness in
around 80 countries of the world. The main aim of the company is to meet with the taste
expectations of the customers by providing them tasty as well as healthy products. Now the
country has also focused on meeting with the expetations of the foreign customers, that is why, it
is planning to expand its buisness in Malaysia and Thialand.

1.1 Company Overview

The company Indomie distribute its food in various different countries of the world. The name of
the company consists of two different words “Indo” and “Mie”. The word Indo refers to
Indonesia and Mie stands for noodles. Therefore, the company only deals with the noodles. The
company was establsihed in 1972 in Indonesia. In 1988, it expanded its business in Nigeria.
Delicious taste of the noodles manufactured by the company Indomie has won the heart of
customers in almost all the countries (Ighodalo et al, 2011). TheIndomie instant noodles were
introduced in Saudi Arabia in 1986. The premium wheat noodles offered by Indomie in Saudi
Arabia are the choice of every home in the region. The indomie factory was opened in 1994 in tis
region which produces 2 million packet of noodles everyday (Asiagwu & Olannye,2020). It was
after joining hands with the Pinehill Arabia Food Limited, the largest noodle manufacturing
company of the world, Saudi Arabia became self sufficient in the production of the noodles.
Saudies acquire the taste of Indomie noodles very fast and this taste also speread to other Arabic
countries in the MENA region. Pinehill Arabia Food Limited continuously made efforts to
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addnew flavours to the noodles so that it can attract more new customers. Today, Pinehill Arabia
Food Limited is known as the only trustworthy manufacturer of instant noodles. It is with this
success a new plant of the company was set up in Dammam in 2007. The manufacturing capacity
of this plant is around 4 million packets per day (Agu, 2018). In all over GCC, Dammam’s
factory is the only supplier of instant noodles. It is to meet with the increasing demand of the
noodles in MENA region, the company also set up its plants in Egypt, Ethiopia, Morocco, Sudan,
Syria, Turkey and Yemen.

1.2 Definition of Research Statement

The company Indomie has climbed the steps of success from the day it has established its
business. But the company might have faced various challenges while establishing its business in
the different countries of the world. There are very few research studies that have conducted
secondary data analysis to explore the strengths and weaknesess of the company and how the
company meet with the different challenges while expanding its business in different regions
especially in the MENA region (Odidika et al, 2020). Therefore, this reaserch study is focused on
the analysis of secondary data using PESTLE and SWOT analysis to explore the impact of
different factors on the performance of the company and how the company meet with the
challenges with its strength. It would also explore the weknesses, opportunities and threats for
the company.

2. Secondary Data Analysis

This section of the report discusses the analysis of the company by reviewing the studies of the
previous resaerchers.The main focus of the section is to explore the impact of political,
economical, social, technical, environmental and legal factors on the company while expanding
its buisness.

2.1 Literature review

The literature review section of the report has discussed the views of different reserachers on the
marketing strategies adopted by the businesses for their expansion.
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Marketing strategies are known as the driving force for the companies that highly contributes for
the success of the organization. It is only through well developed marketing strategies, the
potential of the coampnies can be incraesed (Uzo & Nzegwu, 2018). These strategies help the
companies to achieve their desired goals with the limited available resources. The marketing
strtaegies adopted by the companies should focus on the two key aspects i.e. marketing strategy
decision and marketing strtaegy decision making. Marketing strategy decision should be based
on the availabity of the resources and the choice of target market and decision making of the
marketing strategy should also be in the hand of right persons (Choi et al, 2017). It is the key
asset to achieve the objectives of the firms. The firms can adopt top bottom ot bottom top
strategies for the achevement of goals of the oragnization. The marketing stategy content of the
oranization can also be based on the explicit and implicit factors associated with the firm
(Abubakar, 2014). The PESTLE analaysis of the coampny and region where the business is to be
started or expanded plays an important role. SWOT analysis of the oragnization is also very
imporatnt before making decisions related to marketing strategies of the firm. In well defined
marketing strategies, it is important for the managers to give first priority to the objective as well
as visison of the firm to achieve the desired goals. It is essential to focus on the factors that may
result into the conflicts.
The report has focused on the PESTLE and SWOT analysis of the company Indomie in the
MENA region. It has also discussed the point of view of previous resaerchers regarding this
company and has tried to explored the factors that can impact the business and how the strength,
weaknesses, opportunities and threats of the company can play role.

2.2 PESTLE Analysis

PESTLE analysis:

There are some political issues which can be a big

Political
challenge for the business in MENA region. It is due to

factors political instability in many MENA countries, there is

risk of terrosrits attacks. There is high corruption in the
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countries Egypt, Lebanon, Yemen and Jordan. Poor

governance in the economies results into lack of
transparency, lack of accountability, elitist social classes
and barriers to entry. The coampny Indomie Noodles
would have to conduct a market resaerch for the country
where it wants to expand its buisness.

In all MENA countries, the conomic status of the

Economic factors
countries is varying due to the changing GDP in the
economies. Increasing GDP of MENA countries is the
indicator of growth of the economies in future as well.
It reflects that people have high potential to purchase
products because of their high per capita income.
Majority of the population in these economies is
working. Therefore, they prefer to have instant food.
This is a god opportunity for the company to earn huge
profits.

COVID 19 has restricted the people to go out. Therefore,

Social Factors
they prefer to enjoy the fast food at home. Therefore, the
demand of instant food products has increased. Thus, it
is good opportunity for the company to expand its
buisness in the MENA countries (Akpabio, 2008). There
is diversified community in Dubai. People prefer to like
different variety of foods. Therefore, it is a good
opportunity for indomie company to expand its business
in these countries. But if the company is planning to
open its outlets, it would be difficult to attract customers
due to health concern in this pandemic. 40% population
of MENA region is of young adults and only 2% are
elderly people (Akpabio, 2008). These young adults
remain attractive towards such instant food products.
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Online delivery of food products is the key technical

Technical Factors
factor that can impact the business in MENA region.
Most of the businesses are being successful due to the
online delivery of food products. Therefore, for Indomie,
it is a good opportunity to attract the attention of the
customers. QR codes menu and cloud kitchen are the
another option for the business to enhance the brand
recognition.

Source: (Al-Hamidawi, 2015)

From the above diagram, it is clear that majority of
population in MENA region prefer to purchase online
rather than visiting the stores. There are 136 million
people in the region which are active on social media
(Al-Hamidawi, 2015). It is a good opportunity for
Indomie company to focus on this region for expansion
of its buisness.

The government of the countries in MENA region have

Legal factors
set up regulations for vaccinated staff, saeting capacity
at the restaurant and social distancing. The coampny
Indomie is already focusing on the legal rules and
regulations of all the countries where it is expanding its
buisness. Therefore, the company has no threat
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regarding legal rules and regulations to set up its

business in other countries.

In Mena region, most of the countries have high

Environmental Factors
temperature. Therfore, people prefer to have online
delivery of the products. If Indomie open its outlet in
MENA countries, it would run well during winter season
i.e. 3-4 months and during summers, it can run its
business well with online delivery of instant noodles
(Alabi et al, 2014).

SWOT analysis:

Strength Weakness

○ Best quality of Noodles ○ Lack of brand identification

○ Durability of the Noodles
○ Available at less cost
○ Differentiated product
○ Manufactured in large amount
○ Less budget
○ Lack of trained staff
○ Lack of brand promotion
○ Deals with single product
○ Lack of brand promotion
○ Lack of attractive packaging
○ No restaurants or food outlets to
provide sitting facilities to the
customers where they can enjoy the
noodles
○ Poor strategies for promotion on social
media

Opportunity Threat

○ The company can open its food outlets ○ The company has close proximity to
where people would be able to enjoy various competitors which is the
the Noodles with their friends and biggest threat for the existance of the
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family.
○ Maximum branches of the food outlets
would help in attracting a large
number of customers
○ Social media markeing can help in
brand promotion
○ The coampany can also introduce
healthy food concepts such as Atta
Noodles to attract the attention of the
health concious people
○ Attractive menu for a variety of
noodles can help in attracting tourists
in these MENA regions
company.
○ It is due to COVID 19, health concern
of people has incraesed that is why the
attention of the customers towards
such type of fast food has decreased.
○ In Arab countries, people prefer to
have Arabic food. Even tourists prefer
to have taste of cultural food of Arabi
countries which can b a challenging
factor for the company in the coming
days.

3. Hypotheses development

H0: There is no significant relationship between restuarnt ambience and increasing interest of the
customers for Indomie Noodles in MENA regions.
H1: There is significant relationship between restuarnt ambience and increasing interest of the
customers for Indomie Noodles in MENA region,

4. Conclusion
This part of the report has discussed the PESTLE and SWOT analysis of the coampny Indomie
noodles to explore the factors that can affect the performance of the coampny in the MENA
regions. The report has also developed hypothesis on the basis of which further study can be
conducted.
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5. References

Abubakar, H. S. (2014). Brand loyalty and consumers of northern noodles Nigeria limited: An
analysis of factors. European Journal of Business and Management, 6(8), 64-72.
Agu, A. G. (2018). Impact of Television Advertisement on Undergraduate Students’ Purchase
Decision on Indomie Noodles. Journal of Economics and Management Sciences, p27-p27.
Akpabio, E. (2008). Management of “killer” indomie scare and impact on consumer confidence:
a case study. International Journal of Strategic Communication, 2(4), 244-252.
Alabi, O. A., Esan, E. B., Odunukan, O. C., & Shokunbi, O. S. (2014). Assessment of the
mutagenic and genotoxic potential of indomie noodle seasoning using bacterial (Salmonella)
reverse mutation and SOS Chromo tests. Journal Innovative Biology, 1, 210-214.
Al-Hamidawi, A. A. A. (2015). NORM in Instant Noodles (Indomie) Sold in Iraq. J Environ
Anal Chem, 2(147), 2380-2391.
Ali, R. A. A. (2018). Impact of Cooking and Additives on the Chemical and Microbiological
Characteristics of Indomie Noodles (Doctoral dissertation, Sudan University of Science and
Technology).
Asiagwu, E., & Olannye, A. P. (2020). The Impact of Sales Promotional Activities on Customer
Loyalty: A Study of Consumers of Indomie Noodles in Burutu Town. Journal of Talent
Development and Excellence, 12(2s), 4375-4394.
Choi, G., Pophale, C. S., Patel, B., & Uniyal, P. (2017). China Manufacture Indomie Noodles
Equipment. Journal of Korean Neurosurgical Society, 60(5), 485.
Ighodalo, O. A., Zoukumor, Z., Egbon, C., Okoh, S., & Odu, K. (2011). Processing water
hyacinth into biomass Briquettes for cooking purposes. Journal of Emerging Trends in
Engineering and Applied Sciences, 2(2), 305-307.
Odidika, C. C., Eboagu, N. C., Okonkwo, C. P., Oli, C. C., & Okonkwo, T. B. (2020). Analysis
of Heavy Metal Content in Selected Noodles Sold in Main Market, Onitsha, Anambra State,
Nigeria. Journal of Bioscience and Bioengineering, 7(2), 26-29.
Uzo, U., & Nzegwu, L. (2018). Indomie Noodles in Africa: lessons on digital and cultural
branding. Emerald Emerging Markets Case Studies.