Indomie Noodles in Africa: Lessons On Digital and Cultural Branding
Indomie Noodles in Africa: Lessons On Digital and Cultural Branding
Indomie Noodles in Africa: Lessons On Digital and Cultural Branding
DOI 10.1108/EEMCS-03-2017-0048 VOL. 8 NO. 1 2018, pp. 1-18, © Emerald Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
Nigeria to Ghana, Benin Republic, Ivory Coast, Cameroon and Congo. Despite these
achievements, certain trends were causing concern to Dufil. Although the revenues from
the noodle business had grown by approximately 67 per cent from 2010 to 2015, Indomie’s
market share in the same period had contracted by about 24 per cent. This was largely due
to rising competition from new market entrants (see Exhibit 1). Chikki noodles, Indomie’s
first competitor, was introduced into the market in 2005. Thereafter, other noodle brands
were introduced such as Golden Penny Noodles, manufactured by the Flour Mills Nigeria
Plc; Dangote Noodles (which was later acquired from Dangote Group by Dufil Prima[1]),
from the Dangote Group; Honeywell Noodles from Honeywell Superfine Foods; and several
other brands, all of which focused on the mother and child segment of the market[2]. As of
2016 in Nigeria, there were no less than 16 noodle brands struggling for a share of the
customer’s wallet. Brands such as Chikki, Cherie, Golden Penny and Tummy Tummy posed
stiff competition to Indomie. By offering me-too products at lower prices, these brands tried
to establish local strongholds on markets in specific regions. Cherie, for example, adapted
its product for the northern market, while Tummy Tummy strengthened its position in the
eastern market. Most competing brands attempted to offer a price advantage over Indomie
to gain market share. They also emphasized brand attributes that were similar to those of
Indomie such as convenience, quality and taste.
Another concern for Dufil was the shrinking wallets of instant noodle consumers caused by
the economic downturn in Nigeria that started in 2015 and continued into 2016. In
September 2016, the inflation rate had risen from a single digit to a whopping 17.6 per cent.
The interest rate was 14 per cent, the unemployment rate was 13 per cent, the
underemployment rate was 19 per cent and the value of Nigerian currency had
depreciated, A475
N ⫽ US$1[3]. Wages were not being paid when due, there were
thousands of job cuts, the spending power of shoppers was fast reducing and consumers’
wallets were under severe pressure. Dufil was concerned that demand for the product
would fall as a result of the challenging economic environment.
The biggest concern for Dufil was the situation of consumers in Northern Nigeria because
the consumption levels of Indomie were lower in this territory than the national average.
Despite its large population and relatively young demographic, Northern Nigeria had
accounted for only a tiny share of Indomie’s sales in the past four years. The marketing
director of Dufil summarized the company’s concern for Northern Nigeria in the following
words:
Our market share position in Northern Nigeria has generally been higher than the national
average (see Exhibit 2). The issue we face in the north is low consumption. If you look at the
category penetration it stands at 60 per cent, this number is far lower compared to the national
average of 80 per cent. Although we face stiff competition from Cherie, Golden Penny and
Dangote, I would say that our core focus for the north is how to grow the category by increasing
penetration and thereby improving the per capita consumption which stands at approximately
1/3rd the national average currently.
Kenneth was mindful of Dufil’s history of success and wanted to maintain the legacy. He
began to reflect upon the nature of the instant noodles market in Africa.
As social media engagement around the brand increased, Dufil made efforts to moderate
the brand-related discussions effectively and focused on responding to the consumers’
comments in real time to improve interaction. A team of four was put together to manage
consumer interactions on social media, including aggregating and responding to
consumer feedback. The objective of the team was to achieve an 80 per cent response rate
to consumers’ online demands so that by 2016, there were 10,000 to 15,000 reactions to
each post on the company’s Facebook page. In the first quarter of 2016, Dufil used social
media to support the launch of a new variant of Indomie.
Other consumers wanted the health benefits of the brand to be emphasized in the
advertising campaigns. These and other insights could be obtained through data analytics.
Yet Dufil was yet to have a fully detailed digital marketing strategy in place. The company
began to consider a more systematic use of website optimization and social media
analytics tools.
Critical decisions
Kenneth was convinced that the growth in consumption levels in Northern Nigeria was
critical to improve the market position of Dufil in Nigeria, as that region accounted for almost
30 per cent of its sales. While sipping a cup of coffee, he pondered the critical decisions
that needed to be taken. The first issue was related to the consistency of Indomie’s brand
message across Nigeria. He recalled the remarks of Mr Onome, product manager for Belle
full :
I think the company has very strong capability when it comes to marketing and communications.
However, I think as a brand, we need to define the key area we play in so as not to say too many
things and get confused. Sometimes when you fragment so much information, it gets filtered
out. For us, we know that we are talking about taste, nutrition and fun, but, how well is the
product or position as a brand sitting with our consumer? Have we said too much or do we need
to say fewer things with more frequency?
Furthermore, research suggested that Northern Nigerian women enjoyed cooking for long
periods of time because this practice reflected their womanhood and maternity. On the
other hand, Indomie was positioned as a quick-fix meal that could be prepared within a few
minutes. An issue to be addressed was whether social media marketing would be more
effective than traditional marketing in building the brand within Northern Nigeria. Indomie’s
social media pages across different platforms had achieved reasonable traction among the
young adults in the north. Social media marketing would speed up the access to
underserved segments within Northern Nigeria, allow for more customized campaigns and
foster real-time interactivity between sales people and the consumer. Eventually, social
media engagement would make it possible to understand how online sources of influence
and inter-personal dynamics help consumers in the north make purchase decisions.
Therefore, focusing on increasing the social media patronage of Northern Nigeria
consumers seemed promising except for the fact that the Northerners appeared somewhat
uninterested in social media engagement. According to Mr Tope, the social media
manager:
Northerners are not attached to social media as the other regions in Nigeria. I think it is a cultural
thing. Most of the people in the north prefer to listen to their radios and they seem to enjoy
listening to skits on radio. We are investigating the issues with social media engagement in the
North and social media habits in Nigeria.
A study of media habits in Northern Nigeria had been quite informative. (In the event where
Dufil had grown the consumer base in Northern Nigeria through BTL activities such as
school sampling, road shows, etc., it was unclear whether social media as a channel would
be more effective to move consumers from brand awareness to brand loyalty in Northern
Kenneth was particularly worried about how to craft Dufil’s social media and digital
marketing strategy to cater for brand enthusiasts and consumers in other regions of the
country. If noodle consumers from the north had radically different consumer behaviors
from those in the south, how could Dufil integrate the social media strategy? Kenneth feared
that the media communication messages for consumers in the north might alienate
consumers from the brand in the south. There was also the concern that any attempt to
integrate the media messages for both segments could trigger confusion about the brand’s
positioning. Clearly, Northern Nigeria consumers needed to be addressed in the language
that they could understand but would digital engagement serve this purpose?
Dufil was also convinced that crafting a compelling social media and digital marketing
strategy for Nigerian consumers was a shortcut for understanding how to build the brand
in Ghana and Ivory Coast. Dufil found there was a need to educate the markets in these
countries to try noodles. A lot of effort was required to move the consumers past brand
awareness and into brand loyalty. In Ivory Coast, communal eating was common just as in
Northern Nigeria. Ivoirians enjoyed inviting others to join them for a meal. It was believed
that those who were blessed enough to prepare a meal should share their good fortune with
others. Ivorians believed that eating not only gave the body nourishment but also united
people with community spirit.[5] In Ghana, noodles were consumed at night and were
perceived as fast foods with adverse health effects. Some Ghanians reportedly believed
that it took the human body over 10 h to properly digest noodles, thereby leading to
obesity[6]. Perceptions and practices as mentioned above resulted in limited sales for the
brand in sub-Saharan countries. The sales in Lagos alone were higher than the combined
sales in Ghana and Ivory Coast. It would not be profitable to open a plant in Ghana because
of the limited market size; thus, there is a lot of pressure on the Nigerian plant.
Kenneth thought deeply about the advice from Mr Tope who stated:
We cannot integrate the social media activities across Ghana & Ivory Coast and Nigeria. We
might need to take different campaign routes. Some of these countries are way ahead of others
in their consumption of digital content. We should concentrate our campaigns in these countries
on taste and quality in order to drive category penetration.
Keywords:
Kenneth could not afford the luxury of time to take these critical decisions. He only had a
Marketing,
month to come up with Dufil’s social media strategy for brand building in Northern Nigeria
Brand management/equity,
and the company’s digital marketing strategy for the next three years which would help
Social media strategy
Dufil grow its consumption level in Northern Nigeria.
Notes
1. Vanguard Newspaper Nigeria, April 19, 2017.
2. http://authorityngr.com/2016/03/Battle-of-noodles–Indomie-Noodles-Vs-Honeywell-Noodles/
3. www.nigerianstat.gov.ng
4. National Bureau of Statistics, December 2014: Statistical Report on Women and Men in Nigeria.
5. www.foodbycountry.com/Algeria-to-France/C-te-dIvoire.html#ixzz4N3E1Vu2z
Table EI
Year 2010 (%) 2011 (%) 2012 (%) 2013 (%) 2014 (%) 2015 (%)
Figure E1
Figure E2
Table EII
Grade Social class Traditional occupation
Table EIII
Year 2010 2011 2012 2013 2014 2015
Table EIV
Regions Facebook Twitter Instagram
Corresponding author
Uchenna Uzo can be contacted at: [email protected]