ANALYSIS OF CUSTOMER PERCEPTION AND MARKETING STRATEGY

OF INDOMIE: QUALITATIVE AND QUANTITATIVE APPROACH TO

MARKETING MIX

Abstract
Indomie has proven itself as a market leader, both in Indonesia and internationally,
through a series of product innovations, smart marketing strategies, and a consumer-focused
approach. By understanding customer perceptions and developing the right marketing
strategies, Indomie can not only increase its market share and profitability, but also have a
positive impact on the wider business ecosystem, including business partners, distributors, and
consumers. Indomie's success reflects not only the quality of its products, but also marketing
strategies that are able to create an emotional connection with customers. Indomie is produced
by Indofood, the pioneer of instant noodles in Indonesia, and one of the largest instant noodle
producers in the world. Indomie can increase its competitiveness by developing a premium
market segment, such as offering gourmet variants with more complex flavors to meet the tastes
of upper-class consumers. Innovation in taste and packaging also needs to be considered to
attract new consumers and maintain the loyalty of existing consumers.

Keywords: Indomie, Customer Perception, Marketing Strategy, Marketing Mix

Introduction
In an increasingly competitive and dynamic business world, a deep understanding
of customer perceptions as well as the ability to develop effective marketing strategies
have become key elements for the success of a company. In the fast food industry,
which is known for its fierce competition, challenges are increasing due to the ever-
changing market dynamics. These changes are often triggered by evolving consumer
preferences, product innovations that come in many forms, and intense competitive
pressure from competitors (Su, Zhang, & Wu, 2023).
Success in this sector is not only determined by a company's ability to meet the
basic needs of its consumers, but also by its ability to understand customer values and
expectationsv (Bansal, 2023). In this case, mastering consumer insights is an important
first step to designing targeted marketing strategies. Not only that, companies are
required to be able to innovate quickly and be responsive to new trends, including
health, sustainability, and personalization trends that are currently the main concerns of
consumers.
 One brand that has successfully risen to the challenge is Indomie, an instant
noodle product produced by PT Indofood CBP Sukses Makmur Tbk. Indomie has
proven itself as a market leader, both in Indonesia and internationally, through a series
of product innovations, smart marketing strategies, and a consumer-focused approach.
Indomie's success reflects not only the quality of its products, but also marketing
strategies that are able to create an emotional connection with customers (Ellitan,
Sindarto, & Agung, 2023). For example, Indomie often utilizes local values and pride in
Indonesian culture in their marketing campaigns, which is not only relevant to domestic
consumers but also appeals to international markets that appreciate cultural uniqueness.
Over its long journey, Indomie has demonstrated the ability to adapt to market
changes (Clifford, 2022). For example, when the demand for healthier food increased,
Indomie responded by coming up with instant noodle variants that were lower in fat or
even made from whole wheat. These moves reflect the company's deep understanding
of changing consumer preferences, as well as their commitment to staying relevant in a
challenging market.
With a holistic approach to innovation and marketing, Indomie has built a strong
brand ecosystem, encompassing high customer loyalty, market trust, and a significant
presence across multiple countries. This is proof that with a deep understanding of
consumers, consistent innovation, and the right marketing strategy, a brand can survive
and thrive even in a highly competitive industry like fast food (Derqui, Fayos, &
Occhiocupo, 2022).
Indomie is not just a product, but a cultural icon that reflects the tastes and habits
of the Indonesian people. With its diverse flavors and adaptive marketing strategies,
Indomie has won the hearts of consumers in various market segments, from the lower to
the upper economic classes (Susilo & Harliantara, 2023). However, behind its success,
there are great challenges to remain relevant in an increasingly complex market,
especially with the emergence of new competitors, changing consumption patterns, and
increasing public awareness of health.
Customer perception of a product is strongly influenced by the elements contained
in the marketing mix, namely product, price, place, and promotion (Darmawan &
Grenier, 2021). In this case, it is important to analyze how Indomie utilizes marketing
mix strategies to meet customer needs, build loyalty, and create added value that
differentiates it from competitors. The analysis of customer perceptions and Indomie's
marketing strategy in this study aims not only to evaluate the effectiveness of the
marketing strategies that have been implemented, but also to provide recommendations
that can be used by management in designing strategies that are more innovative and
responsive to market changes.
With the increasing adoption of technology and changing consumer preferences
influenced by global trends, Indomie is faced with the need to continuously innovate in
all aspects of the marketing mix. Through in-depth analysis and a multidimensional
approach, this research is expected to serve as a reference for Indomie and other
companies to better understand market dynamics and make data-driven strategic
decisions. By understanding customer perceptions and developing the right marketing
strategies, Indomie can not only increase its market share and profitability, but also have
a positive impact on the wider business ecosystem, including business partners,
distributors, and consumers.

Discussion
Indomie: Indonesia's Instant Noodle Icon
Indomie is produced by Indofood, the pioneer of instant noodles in Indonesia, and
one of the largest instant noodle producers in the world. Indomie comes in various
variants, ranging from classic flavors such as chicken, vegetable, and chicken curry, to
the most popular flavors such as Mi Goreng. Indomie is available in more than 100
countries around the world, including Australia, New Zealand, the United States,
Canada, Asia, Africa, Europe and the Middle East, with an annual production capacity
of 19 billion packs. No wonder Indomie is the world's favorite flavor.

Indomie's Competitors in the Instant Noodle Market

Indomie has several competitors in the instant noodle market, which are as
follows:
1. Supermi
Supermi is the pioneer of instant noodles in Indonesia, first introduced in 1968.
Supermi continues to innovate in developing its products, offering simple yet
distinctive flavors, and has been a mainstay of Indonesian society for generations.
2. Sarimi
 Sarimi is another Indofood product known for its bold flavor and strong aroma.
Product variants include regular Sarimi and Sarimi Isi 2.
3. Pop Mie
Pop Mie is a brand of instant noodles in handy cup packaging, perfect for travel or
daily activities.

Marketing Strategy Analysis (4P's)

The instant noodle industry in Indonesia is dominated by several well-known
brands that have unique strategies to reach their respective target markets. Each brand
utilizes their competitive advantage, either through product variations, marketing
strategies, or targeted distribution. Here is a more detailed description of each brand's
strategy:
1. Indomie. This brand is known for its wide variety of flavors, from traditional to
international flavors. Indomie uses a price penetration strategy to reach a wide
range of people, ensuring its products remain affordable. Promotion is done
massively through conventional media, such as television, and digital media such as
social media. This allows Indomie to build closer relationships with young
consumers. Global distribution is the main strength that brings Indomie to be
recognized overseas.
2. Supermi. As one of the oldest instant noodle brands in Indonesia, Supermi
highlights the traditional value attached to its products. With affordable prices,
Supermi targets consumers who prioritize nostalgia and simplicity. The promotional
strategy adopted tends to be conservative, utilizing local media to reach a more
specific market. Distribution is focused on local markets in Indonesia, ensuring the
product remains easy to find in the regions.
3. Sarimi. This brand targets consumers on a budget, offering products at friendly
prices without compromising on quality. Sarimi's main focus is on traditional
flavors that Indonesians love. Sarimi relies on local distribution to reach consumers
in specific regions, ensuring accessible product availability.
4. Pop Mie. Pop Mie stands out with its ease of consumption through its convenient
cup packaging. With this packaging, Pop Mie has a higher price point compared to
regular instant noodle products. This strategy targets consumers who need quick
and easy solutions, especially among young people and workers. Its wide
 distribution ensures Pop Mie is available in various locations, from supermarkets to
small shops in remote areas.

Each brand has a unique approach that is tailored to the needs and preferences of the
market, creating differentiation that becomes their competitive advantage.

Market Segmentation
Indomie successfully covers a wide market segment with geographic,
demographic, psychographic and behavioral approaches. Geographically, the product is
available in various countries with flavors tailored to local tastes. In terms of
demographics, Indomie targets all age groups and income levels, with affordable prices
and flavors suitable for all. In terms of psychographics, the product meets the needs of
busy lifestyles with ease of serving, while allowing consumer creativity in preparing it.
Behaviorally, Indomie is a flexible choice for quick meals, snacks, or main courses,
with a nostalgic appeal to many consumers. This combination of accessibility and
flexibility keeps Indomie relevant and competitive in the global market.

Indomie and the Transformation of Indonesian Consumer Culture

As one of the leading instant noodle brands in Indonesia, indomie has great
potential to develop untapped markets by targeting two potential segments. The first
segment is the premium or gourmet market, which has been limited. Amidst the
growing interest in premium products, Indomie can develop new variants with high-
quality ingredients, more complex flavors, or more exclusive packaging, to cater to the
tastes of upper-middle-class consumers who seek a more special culinary experience.
The second segment that can be reached is consumers who care about sustainability. In
an era that is increasingly aware of the importance of environmental sustainability,
many consumers prioritize products with environmentally friendly raw materials or
recyclable packaging. Indomie can develop products with this aspect in mind, such as
using organic raw materials or reducing the use of plastic, to appeal to consumers who
are increasingly concerned about the environmental impact of the products they
consume.
Indomie has become an integral part of Indonesian culture and daily life. Since its
launch, Indomie has managed to build a strong brand image among consumers, not only
as a convenience food, but also as a symbol of affordable convenience and
deliciousness. This success has been driven by a variety of factors, including an
extensive distribution network, which allows Indomie to be available in almost every
corner of Indonesia, from big cities to rural areas. In addition, Indomie's affordability
has made it the first choice of many people, from low to middle income groups. In
addition, Indomie has also successfully adapted to local tastes, offering a variety of
flavors that are uniquely Indonesian, such as soto, rendang, and mie goreng flavors,
which further strengthens the emotional connection between the product and consumers.
With this approach, Indomie not only meets people's consumption needs, but also
shapes the culture of Indonesian consumers who are familiar with the diversity of
flavors and the ease of enjoying delicious food.

Findings from Individual Interviews (IDI)

Based on the results of Individual Depth Interviews (IDI) conducted with several
respondents, several customer perceptions and behaviors related to instant noodle
brands, especially Indomie, were found. In general, respondents identified important
attributes in choosing instant noodles, namely taste, price, and ease of access. Indomie
is considered superior in all three aspects compared to other brands.
Respondents like Richard Hans emphasized that taste and price are the main
factors in choosing instant noodles. He considers Indomie to have an advantage in terms
of variety of flavors, especially the Mi Goreng variant, as well as affordable prices. This
opinion is in line with other respondents such as Daffa Wahyu, Nadinda, Howie, and
Rayhan, who also appreciate Indomie's delicious taste, competitive price, and wide
availability. Indomie is seen as having attractive advertisements, thus strengthening its
brand image among consumers.
The majority of respondents tend to choose Indomie as their go-to instant noodle
brand, with a high likelihood of continuing to purchase the product unless there is a
significant price increase. However, some respondents identified areas where Indomie
could improve. Richard Hans suggested that Indomie develop spicy variants with a
wider range of spiciness levels, while other respondents suggested healthy variants such
as low-sodium or whole-grain noodles.

Findings from Focus Group Discussion (FGD)

The following are the results of the Focus Group Discussion (FGD) based on the
discussion:
1) Consumer Needs and Preferences
 Consumers emphasized that taste, convenience, and price are the main factors in
choosing a product.
 Some participants pointed out that they consider options from other brands that
offer healthier choices, indicating an increased awareness of healthy eating.
2) Consumer Perception of the 4P Elements (Product, Price, Place, Promotion)
 Product: Consumers appreciated the superior taste of the product, but some
expressed a desire for a change in the texture of the noodles served.
 Price: The product is considered affordable, but it was noted that some
competitors provide more attractive promotions.
 Place: The product is easy to find in various locations, both online and offline,
so accessibility is considered very good.
 Promotion: Iconic advertisements are still remembered by consumers, although
some participants stated that their influence on purchasing decisions is
diminishing.
3) Brand Loyalty and Product Development
 Most consumers showed a high level of loyalty to the product. However, they
suggested further development, such as:
 Adding more spicy flavors.
 Larger portion sizes.

Analysis of Perceptions of Product Attributes

Perceptual analysis of product attributes is the process of understanding how
consumers perceive various product characteristics or features. Product attributes
include aspects such as price, taste, packaging, variety, availability, health
considerations, brand recognition, promotions and customer loyalty towards indomie.
These perceptions are formed from consumer experiences, marketing communications,
recommendations, and individual expectations of the product.
Graphics 1. Importance of Product Attributes

Graphics 2. Price
 Graphics 3. Taste

Graphics 4. Packaging

Graphics 5. Variety
 Graphics 6. Availability

Graphics 7. Health Considerations

Graphics 8. Brand Recognition

 Graphics 9. Promotions

Graphics 10. Customer Loyalty Towards Indomie

Statistical Analysis
1. Mean
Importance of Price: 4.40
Importance of Taste: 4.69
Likelihood of Buying Again: 4.71
Likelihood of Recommendation: 4.69
2. Standard Deviation
Price: 0.98 (high variation)
Taste: 0.60 (high consistency)
Likely to Buy Again: 0.59
Likelihood of Recommendation: 0.64
3. Hypothesis Testing
H₀: There is no significant difference in taste assessment between age/gender
groups.
H₁: There is a significant difference in taste assessment.
 Graphics 11. Snake Plot

Taste has the highest importance rating (4.7/5), indicating that taste is the most
critical factor for consumers when selecting Indomie or other brands in the instant
noodle category. Price also scores highly, but slightly lower than taste (4.5/5), showing
that consumers are price-sensitive but still prioritize taste slightly more. Packaging has a
moderate importance level (3.5/5), suggesting that packaging matters but is not a top
priority for most consumers. Availability has a relatively high importance (4.0/5),
indicating that ease of finding the product is an important factor but not as important as
taste or price. Health Considerations is the least important factor (2.5/5), suggesting that
health-related attributes (such as: nutritional content) are not a primary concern for most
consumers when selecting an instant noodle brand.

Graphics 12. Scatter Plot

Scatter Plot of Customer Satisfaction vs Likelihood to Recommend

 Taste: There is a positive correlation between satisfaction with taste and likelihood
to recommend Indomie. As satisfaction with taste increases, so does the likelihood
of recommending Indomie (from 3 to 5).
 Availability: Satisfaction with availability remains consistently high (around 5),
regardless of the likelihood to recommend. This indicates that availability is not a
key factor influencing recommendation.
 Price: Satisfaction with price shows a slight positive trend. However, the increase in
satisfaction from 3 to 5 does not drastically affect the likelihood to recommend,
suggesting price satisfaction has a weaker correlation with recommendations
compared to taste.

Total Satisfaction vs Likelihood to Recommend Indomie

 Total satisfaction is combined between satisfaction taste, price, and availability. It is
calculated to represent the customer satisfaction in general/combined.
 There is a slight positive correlation between total satisfaction (average of all
factors) and the likelihood to recommend Indomie.
 Respondents with a higher total satisfaction score are generally more likely to
recommend Indomie, although the increase is gradual rather than sharp.

Demographic Segment
1. Age
 Primary segment: Young adults (18-24 years), forming 67.4% of respondents
 Factors: Affordability, taste preference, and convenience
2. Gender
 Majority: Male (64.3%)
 Opportunity: Gender-specific marketing
3. Occupation
 Significant portion: Students (58.1%)
 Suggestion: Target educational institutions or student-focused campaigns

Income Segment
Consumers with a monthly income below Rp 6,000,000 represent the majority of
the respondent pool, highlighting a significant level of price sensitivity within this
demographic. This pattern suggests that individuals in this income bracket are
particularly cautious about their spending habits and prioritize affordability when
making purchasing decisions. This aligns perfectly with Indomie’s pricing strategy,
which is designed to cater to the needs of lower-income groups by offering its products
at a price point that is accessible and budget-friendly. By maintaining an affordable
pricing structure, Indomie ensures that its products remain within reach of a large
portion of the population, particularly those who may be more vulnerable to price
fluctuations and economic pressures. This strategic pricing not only boosts the brand’s
appeal among price-conscious consumers but also reinforces its position as a staple in
households across a wide range of socio-economic segments.

Behavioral Segments
Based on the data provided, taste preference is the most important factor for
consumers with a score of 4.7 out of 5. This suggests that superior taste quality is a key
attraction that influences purchasing decisions. In addition, price sensitivity also plays a
significant role, with a score of 4.5 out of 5, indicating that consumers are looking for
products that offer a balance between flavor quality and economic value. Meanwhile,
health considerations are at the lowest priority, with a score of only 2.5 out of 5,
indicating that although this aspect is relevant, consumers do not make it a major factor
in choosing a product.

The level of consumer loyalty and recommendation for this product is very high.
This is reflected in the scores of 4.71 out of 5 for repurchase intention and 4.69 out of 5
for likelihood of recommending the product to others. This data indicates strong
satisfaction from consumers, making loyalty one of the important assets to drive
business growth. Thus, a marketing strategy that focuses on high-quality taste,
competitive pricing, and capitalizing on customer loyalty could be the key to this
product's success in the market.

Indomie’s Current Target Market and Future Targets

Indomie, as a leading instant noodle brand, primarily targets young adults aged
18-25, a demographic characterized by a high consumption of convenient, affordable,
and flavorful food products. However, its appeal extends beyond this core audience,
resonating with a broader demographic due to its diverse flavor options and strong
cultural associations. To further leverage its market position, Indomie could explore
potential segments such as health-conscious markets by introducing a healthier product
line, like low-sodium or high-protein noodles, to meet the growing demand for
nutritious options. Expanding its premium collection with unique and gourmet flavors
could cater to customers willing to pay more for an exclusive experience. Additionally,
Indomie could innovate in niche markets, such as caffeinated noodles, targeting
adventurous consumers and those seeking new functional food products. These
strategies align with evolving consumer preferences and open up new growth
opportunities for the brand.

Identification of The Market Position of Indomie Relative to Competing Brands

Indomie has established a strong market position by combining taste and price
leadership, offering affordable products with superior flavor. This approach has
contributed to its high levels of brand loyalty, as customers often repurchase and
recommend the brand to others. Indomie’s extensive distribution network further
strengthens its market presence, ensuring the product is readily available to consumers
across various regions. The brand has also invested significantly in advertising, creating
memorable campaigns that emphasize its Indonesian roots, which resonate with local
consumers and reinforce a sense of national pride. In terms of brand positioning,
Indomie occupies a traditional and affordable niche in the instant noodle market. While
its main competitors, such as Mie Sedaap, focus on a premium market, and Mie ABC
targets health-conscious consumers, Indomie remains a go-to choice for those seeking
both value and authentic taste.

Key Differentiators from Competitors

Strengths:
 Superior taste and emotional connection: The product offers a unique and satisfying
taste that resonates deeply with consumers, creating a lasting emotional bond that
differentiates it from competitors.
 Strong brand recognition and advertising: The brand has a well-established
presence in the market, backed by effective advertising campaigns that enhance
consumer recall and loyalty.
 Widespread availability: The product is easily accessible to a wide range of
customers, ensuring consistent market presence across diverse retail channels.
 Competitive pricing: Offering good value for money, the product maintains
competitive pricing without compromising quality, appealing to cost-conscious
consumers.
Opportunities for Improvement:
 Health-conscious product lines: There is a growing demand for healthier options,
and the brand could introduce more health-focused products to cater to the
changing preferences of consumers.
 Innovative flavors and packaging: By exploring new and unique flavors, as well as
introducing creative packaging, the brand can attract new customers and keep the
existing ones excited about new experiences.

Marketing Mix Improvements

To increase competitiveness and business desire, it is important for companies to
continue to innovate in marketing strategies. One effective way is to make
improvements to the elements in the marketing mix (product, price, place, promotion,
people, process, and physical evidence) that can provide added value to consumers and
strengthen the brand's position in the market.
a. Product. Currently, the product range offers diverse flavors and formats to cater to
various preferences. To enhance this, we plan to introduce low-sodium, whole-
grain, and organic options, responding to increasing consumer demand for healthier
and more sustainable food choices.
b. Price. The pricing strategy is currently affordable, aiming to cater to a wide
customer base. An improvement could be the introduction of loyalty programs that
offer discounts or exclusive products, rewarding repeat customers and encouraging
brand loyalty.
c. Place. The current distribution strategy is extensive, ensuring broad availability.
However, to capitalize on current trends, strengthening partnerships with e-
commerce platforms and focusing on direct-to-consumer sales could improve
accessibility and enhance customer engagement.
d. Promotion. The current promotional approach uses a multifaceted strategy. To
further amplify reach, a shift towards digital marketing campaigns and
collaborations with influencers could provide more targeted and effective
engagement with younger, tech-savvy audiences.
e. People. Support for small business partners is already in place. An improvement
would involve implementing training programs to further empower partners,
alongside a more standardized approach to branding, ensuring consistent quality
and messaging across all partners.
f. Process. The current production and distribution processes are efficient, but
emphasizing sustainability in sourcing and manufacturing would align with
growing consumer concerns about environmental impact and strengthen the brand’s
commitment to sustainability.
g. Physical Evidence. The product’s packaging is already easily recognizable. To
improve this, switching to eco-friendly materials and incorporating clearer
nutritional labeling would provide consumers with a more transparent and
environmentally conscious choice.

Conclusion
Indomie has successfully established its position as a leading instant noodle brand,
both in the Indonesian and global markets, by relying on its advantages in varied
flavors, affordable prices, and wide distribution. This brand has succeeded in building a
strong emotional bond with consumers through a variety of flavors tailored to local
tastes, such as fried noodles and soto, which strengthens its presence in the consumption
culture of Indonesian society. This success is also driven by a massive marketing
strategy through conventional and digital media, which helps it reach a wider audience,
including the younger generation.
However, in facing the growing market trend, Indomie needs to consider
developing healthier and more environmentally friendly products. The demand for
healthier food choices, such as noodles with low sodium content or using organic
ingredients, is increasing, and this can be an opportunity for Indomie to expand its
market reach. In addition, attention to sustainability through the use of more
environmentally friendly packaging will further enhance the brand's image in the eyes
of consumers who are increasingly concerned about the environmental impact of the
products they consume.
Going forward, Indomie can increase its competitiveness by developing a
premium market segment, such as offering gourmet variants with more complex flavors
to meet the tastes of upper-class consumers. Innovation in taste and packaging also
needs to be considered to attract new consumers and maintain the loyalty of existing
consumers. In addition, strengthening the presence on digital platforms through
influencer-based marketing and more targeted campaigns can reach younger, more tech-
savvy consumers, strengthening Indomie's position in an increasingly competitive
market.
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