Effect of positioning and product differentiation on consumer loyalty of Indomie instant noodles

Abstract

The competition between industries in the food sector in the modern era has increased significantly. One of the significant instant noodle brands is Indomie. The companies must create a strategy to increase income and profits and maintain market share. The objective of the research to analyze the influence of positioning and product differentiation on the consumer loyalty of Indomie instant noodles. The method of this research used a quantitative descriptive. The sample for this research had as many as 100 respondents. The technique of sampling used a purposive sampling. The technique of data analysis is a multiple linear regression analysis using the classical assumption test, F-test, t-test, and coefficient of determination test. The data was processed using the SPSS-25 program. The results show that positioning and product differentiation are significant to consumer loyalty to Indomie instant noodles. Partially, the positioning positively and significantly affects consumer loyalty to Indomie instant noodles. At the same time, product differentiation has no significant on consumer loyalty. The coefficient of determination test (R²) shows that positioning and product differentiation have an effect of 50.8% on consumer loyalty, while other variables influence 49.2%. Companies should increase product differentiation by attempting instant noodle variants made with healthier ingredients.