People Innovation Excellence

[Case Study] Breaking the Instant Noodle Market Domination: Mie Sedaap (WingsFood) vs Indomie (Indofood)

Year: 2007

Case number: 107-1006-001

Case Author: Amalia E Maulana

Course Major: Marketing

Related Topics: Competition

Teaching Note Availability: –

Abstracts:

Before the year 2003, Indomie domination (Indofood) in instant noodles market was unbeatable. It succeeded with hardly any competitors. Several attempts to take over the market share of instant noodle market was done by competitors and failed. Instead Indofood succeeded to defeat them. Even multinational company like Unilever which had skill to develop brand and wide distribution network tried to enter the instant noodle market to no avail.  Mie&Mie brand (Unilever) was forced to exit market by Indofood. This also included the failure of Tara Nasiku, an instant rice brand launched by Unilever in 1999, with intention to switch consumer buying behavior from instant noodle to instant rice. Although the production budget and development of Tara Nasiku exceeded boundary of new product launching, consumers still preferred Indomie.

Initially, Indofood did not suspect that Mie Sedaap from Wingsfood would succeed in taking over the market share. Although Wings Group was long enough in toiletries industry, supported by solid marketing team and a wide range of distribution network, Indofood still believed that food business needed special expertise. And Indofood, indeed, did not think that Wingsfood had that. Indofood was not seriously counter the aggressive marketing activities done by Mie Sedaap. It could be said without any obstacles Mie Sedaap glided to the market.

Slowly Indofood’s Indomie domination broke down. Its market share fell. Their 90% market share in 1999 declined to only 70% in 2003. The national instant noodle market itself was worth 8 trillion rupiahs, thus Indofood’s sales decline disturbed the plan to increase their sales in the country.

What super strategies did Wingsfood use with its Mie Sedaap to overpower Indomie’s domination in instant noodle market?   What effort and attempt did Indofood take to regain and restore their lost market? How were the consumers’ perceptions after of this noodle war?

 


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