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TP3 - Growth and Challenges, G7 (Jerry, Elvira, Shella, Angeline, Annie,…
TP3 - Growth and Challenges
Vertical Integration
owning or controlling its supply chain
Raw Material Production
Processing and Manufacturing
Packaging
Distribution
Sales and Marketing
aggressive marketing campaigns for products like Indomie
maintain Indomie’s position as a market leader in the instant noodle segment.
extensive distribution network of PT Indofood Sukses Makmur Tbk.
maintaining product availability and freshness
Bogasari Group became the first flour wheat producer in Indonesia to use degradable polypropylene for its 25 kg packaging.
self-sufficiency in packaging reduces reliance on external suppliers and helps manage costs and quality
The Agribusiness Group manufacturing and marketing of cooking oils,
maintain control over the quality and production processes of its products
Bogasari sources flour from its parent company PT Indofood Sukses Makmur Tbk's Bogasari flour mills.
Horizontal/Product Diversification
refers
:arrow_right:
a strategy that seeks ownership or increased control over a company's competitors
example
Indofood buying or taking control of Supermi and Sarimi, which are competitors of Indofood's product, Indomie. :warning:
Diversification
:one: Related Diversification :!!:
This is pursued by adding new products that are still related to the current products. :star:
example
Instant noodle products
Indomie, Pop Mie, Mi Telur cap 3 Ayam, Indomie Jumbo, Pop Bihun, Sarimi Ekstra Besar, Indomie Kriuk, Indomie Special, etc.
:two: Unrelated Diversification
This strategy involves adding or creating new products that are not related to the current products for the current customers. :check:
example
expand its industry by establishing Indo Property
to sees a significant opportunity in the property business in Indonesia.
:arrow_left:
BCG matrix
question mark :question:
:arrow_up: high growth & low market share :arrow_down:
Beverages (Fruitamin)
star :star:
:arrow_up: High growth & market share
Instant Noodle (Indomie)
dog :dog2:
:arrow_down: low growth & market share
Snack Foods (Chitato)
cash cow :cow2:
:arrow_up: low growth & high market share :arrow_down:
Seasonings (Sambal ABC)
Cooking Oils (Bimoli)
Joint Venture
PepsiCo
End Partnership
2021
1990
To expand their product line
Nestle
2005
End Partnership
2018
Geographical Expansion
Home country
🇮🇩
Business Operations
Manufacturing Facilities
Pasuruan, East java
Medan, North Sumatra
Makasar, South Sulawesi
Cikarang, West Java
Detailed Logistics Network
Distribution
Local
Fleet Size
Regional
Innovation in Logistics
Real - Time Tracking
Cold Chain Logistics
Motivation
Local Responsiveness
Product Customized
example
Indomie
Distribution Adaptation
example
Papua
Cost Pressure
Economies of Scale
example
Bogasari Flour Mills
supply Chain Control
Other Factors
Coordination vs Control
Centralized Control
Decentralized Coordination
E-commerce
Online
example
Host countries
Foreign Market Entry
Export :one:
Direct
Selling directly to end user
Local sales representatives or distributors
Attending trade fairs and making personal visits
Indirect
Agents
Intermediaries
Individuals
Organizations
Joint Venture :two:
Indofood & Tolaram Group
Dufil Prima Foods
Nigeria’s first and biggest t instant
noodle producer in Nigeria
Indofood Agri & J&F Investimentos
Canapolis Group
50:50 share
Acquired a sugar mill in Minas Gerais, Brazil
Wholly-ownes Subsidiary :three:
Merger & Acquisition
Indofood acquired
Pinehill
The largest instant noodle producer and distributors in Africa, Middle East & Central Europe
Greenfield
Establishing new
manufacturing plants
Morocco, Egypt and many more
Future Challenges and Suggestions
Future Challenges
strong competitor
product bussiness
ex. unilever,nestle
currency fluctuation
exchange rate
market conditions
economic growth
wheat inflation
india export restriction
market demand
health awereness
Suggestions
continue evaluations and improvement
innovate product offerings
enhance cost management
improve product branding
G7
Jerry
Elvira
Shella
Angeline
Annie
Jean
Michiko
