Abstract

In 1989, Ajinomoto Indonesia succeeded to launch Masako, a product that positioned Indonesia as one of key overseas sales drivers. Unfortunately, the 2009-2013 total sales of Ajinomoto dropped at 4% CAGR. During this time period, sales from domestic food products almost halved, declining from 626.8 billion yen in 2009 to 337.5 billion yen in 2013. This loss was only partially offset by increase in sales of overseas food products from 214.6 billion yen in 2009 to 293.2 billion yen in 2013. This trend meant that the sales from overseas food products, including Masako, could never be emphasized enough, with contribution to total sales almost doubling from 18% in 2009 to 30% in 2013. With the plummeting domestic demand, there was only one way for Ajinomoto to succeed: Focus on overseas market, especially Indonesia. In order to boost its sales from the country, Ajinomoto should grow its seasonings and cosmetics ingredients businesses in Indonesia by leveraging its strength in technology and localized marketing.

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