BrandZ™ Top 50 Most Valuable Indonesian Brands

Transcription

TOP
50
1
2
3
4
5
6
7
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10
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TOP 10 BRANDS
15
49
18
50
BIGGEST
CATEGORY
US$9,918 Mil.
US $8,285 Mil.
US $6,373 Mil.
US $6,153 Mil.
US $5,882 Mil.
US$2,145 Mil.
US$2,042 Mil.
US$1,939 Mil.
US$1,767 Mil.
US$1,669 Mil.
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CATEGORIES
2%
1%
Soft Drinks
2 Brands
Entertainment
1 Brand
FMCG BRANDS LEAD BRAND CONTRIBUTION
Home Care
1 Brand
The top names in the ranking for Brand Contribution are
led by household names in food, drink and personal care.
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Telecom Providers
3 Brands
13%
5
47
Retail
4 Brands
5%
US $402 Mil.
5%
5
5
US $1,039 Mil.
5
US $949 Mil.
US $1,767 Mil.
US $659 Mil.
Internet Penetration
US $323 Mil.
Brand Value
US $398 Mil.
2012
Brand Value
2012
46
42
35
2015 (est.)
24%
29%
2013
2014
2015
Compiled by GroupM. Historic sources: eMarketer,
Portio Research, comScore, Akamai
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33
32
31
30
29
28
27
www.brandz.com
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17%
10.6%
Brand Value
37
2014
26
43
Smartphone
Penetration
Brand Value
US $2,145 Mil.
% of Total Value of BrandZ™ Top 50
Most Valuable Indonesian Brands
38
2013
25
23
6
US $461 Mil.
39
36%
26
The average innovation score for brands
in the Indonesian Top 50 is 103.
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29%
24%
30
33%
24
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HUGE DIGITAL POTENTIAL AS
INTERNET PENETRATION GROWS
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BRICKS-AND-MORTAR RETAILERS
MAKE STRONG SHOWING
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Banks
12 Brands
US $267 Mil.
Brand Contribution (BC) measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 highest
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120
119
119
5%
4
4
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The top six brands indexed according
to consumer perceptions that they ‘set
trends’ are from five different sectors.
Tobacco
7 Brands
43%
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5
US $354 Mil.
US $484 Mil.
‘Sets trends’ score
45
5
US $110 Mil.
4
US $5,882 Mil.
INNOVATION
DRIVES SUCCESS
23%
Real Estate
8 Brands
5
Food & Dairy
4 Brands
2%
Personal Care
7 Brands
Banks comprise 24 percent of the
total number of brands in the Top 50
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11
1%
Airlines
1 Brand
<1%
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24%
IN DON E SI A H A S A N A BU N DA NCE OF YOU T H F U L E N E RGY
A L MOST H A L F T H E P OPU L AT ION I S U N DE R T H E AGE OF 2 5
CONTENTS
CONTENTS
THOUGHT
LEADERSHIP
56
Indonesian Narratives
By Lara-Lee Burn,
Head of Firefly Millward Brown
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Empowered Youth
By Daniel B. Siswandi,
Chief Strategy Officer, J. Walter Thompson
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64
14
18
22
24
34
36
40
42
46
47
48
50
Overview
Key Results
Cross-Category Trends
Key Take Aways
Economy and Demographics
History
Media Spending
Brand Value
Brand Age
Brand Ownership
Brand Contribution
Brand Indonesia
Demanding Consumers
By Suresh Subramanian,
Managing Director, TNS
INTRODUCTION
124
Big Ideals
By Katryna Mojica,
Chief Executive Officer, Ogilvy & Mather
126
Localization
By Richard McLeod,
Account Director, Millward Brown
E-Commerce
By Maneesheel Gautam,
Leader, Invention, MindShare
Lessons from China
By Peter Walshe,
BrandZ™ Global Strategy Director, Millward Brown
From Fragile to Agile
By Thomas Sutton,
Technical Advisor, Landor
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122
The Truth About Premium
By Nadya Ardianti,
Account Director, Kantar Worldpanel
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BRAND BUILDING
BEST PRACTICE
130
Happily Ever After
By Avinash Pareek,
Strategy and Communications Planning Director, Maxus
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Creating Complex Brand Personalities
By Kris Constantoulas,
Head of Strategy, Y&R
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Diving into Digital
By Manoj Damodaran,
Head of Digital, MEC
THE INDONESIAN
TOP 50
RESOURCES
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78
80
86
90
96
100
106
110
117
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BrandZ™ Top 50 Most Valuable Indonesian Brands 2015
Indonesian Top 50 Ranking
Our Insights
Brand Profiles 1-12
Our Insights
Brand Profiles 13-24
Our Insights
Our Insights
Our Insights
140
144
150
158
160
BrandZ™ Valuation Methodology
BrandZ™ Reports, Apps and iPad Magazine
WPP Company Contributors
WPP Company Brand Building Experts
BrandZ™ Global Top 100 Team
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WELCOME
WELCOME
OPTIMISM AND
ENERGY DRIVE
THIS VIBRANT
EMERGING MARKET
Growth, stability and consumer confidence
create perfect conditions for brand-building
Indonesia is a country
whose time has come.
Overshadowed somewhat
by the headline-grabbing
growth of its neighbors
China and India, Indonesia
has its own story of
transformation to tell that
is no less extraordinary.
The country that is now
the economic powerhouse
of Southeast Asia is in
the midst of change on a
massive scale.
As the country begins a momentous
phase in its development, blending
tradition with modernization, we
inaugurate the WPP BrandZ™
Top 50 Most Valuable Indonesian
Brands 2015. This ground-breaking
study ranks the country’s most
accomplished brands, analyz es
their success, and identifies the key
forces that are driving brand growth
in this market. It is the first edition
of an annual study that will track
and anticipate the rapidly evolving
environment for brands in Indonesia,
and will chart the changing value of
the country’s most valuable brands.
Indonesia’s quarter-of-a-billion people
make it the world’s fourth-mostpopulous country in the world, and
the third-largest democracy. But while
these numbers paint a compelling
picture of growth and potential in this
market, what sets it apart in the region
and makes it such an attractive longterm market for brands is its people’s
vitality and sense of optimism.
Market liberalization and
decentralization are not only
stimulating economic growth but also
bringing unseen levels of consumer
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spending power. There is a rapidly
expanding middle class, and even for
those millions of Indonesians who
can only yet dream of joining its ranks,
there is a strong sense that things are
getting better.
As Indonesia marks its 70th anniversary
of independence, there is positivity,
energy, and determination. As
President Joko Widodo said when
he was elected last year, the time has
come to “move together to work,
work and work” towards a better
future. The Asian Development Bank
forecasts GDP growth in Indonesia of
5.5 percent in 2015, and 6 percent for
2016 - strong, but sufficiently modest
to be sustainable.
The pace of market change being
seen in Indonesia is breath-taking,
thanks to the speed with which
economic restructuring and opening
up is being implemented.
Such swift change does not come
without difficulty and environmental
impact. The rush-hour traffic jams on
the streets of Jakarta are testament
to the challenge of managing the
effects of a sudden surge in consumer
affluence. But Indonesia is, without
doubt, a land of opportunity, both
for its people and for the brands that
seek their loyalty.
Whether you’re an Indonesian or an
international company, in this report
you’ll find knowledge and insight to
help you create and grow brands in
Indonesia more effectively.
On page 24, Take Aways provide
succinct, action-oriented
recommendations for brands based
on our expert analysis of the market.
We’ve also included summaries of
Indonesia’s Top 50 most valuable
brands. Brand experts from WPP
companies across Indonesia share
their market wisdom and sharp
insights through extensive Thought
Leadership and Best Practices essays,
and we present all this with stunning
photography and a vibrant design that
reflects the dynamism and variety of
the country itself.
At WPP, the global communications
services leader, our companies have
been engaged in Indonesia for 16
years. Today, 1,500 people work
across WPP companies providing
advertising, marketing, insight, media,
digital, shopper marketing and PR
expertise. It’s part of our global
presence in 112 countries. By linking
all this talent, creativity, wisdom, and
horizontality, we amplify global trends
and insights that help our clients in
useful and unique ways.
We invite you to access our unrivalled
BrandZ™ resource library. Along
with the new BrandZ™ Top 50 Most
Valuable Indonesian Brands report,
the library includes these annual
studies: BrandZ™ Top 100 Most
Valuable Global Brands, BrandZ™ Top
100 Most Valuable Chinese Brands,
and BrandZ™ Top 50 Most Valuable
Latin American Brands. To download
these and other reports, please visit
www.BrandZ.com. For the interactive
BrandZ™ mobile apps go to
www.BrandZ.com/mobile.
The backbone of all this intelligence
remains the WPP proprietary
BrandZ™ study. The planet's largest
and only consumer-focused source
of brand equity knowledge and
insight, and the unique and world
authoritative BrandZ™ brand
valuation methodology by Millward
Brown. First we analyze relevant
corporate financial data and strip
away everything that doesn’t
pertain to the branded business.
Then we take a critical step that
makes BrandZ™ unique and
definitive among brand valuation
methodologies. We conduct
ongoing, in-depth quantitative
consumer research with more
than 170,000 consumers annually,
across more than 50 countries, to
assess consumer attitudes about,
and relationships with, over 100,000
brands.
Our database includes information
from over three million consumers.
It reveals the power of the brand
in the mind of the consumer
that creates predisposition to buy
and, most importantly, validates a
positive correlation with better sales
performance.
At WPP, we’re passionate about
using our creativity to create and
build strong, differentiated brands
that deliver lasting shareholder
value. To learn more about how to
apply our experience and expertise
to benefit your brand, please
contact any of the WPP companies
that contributed expertise to
this report. Turn to page 150 for
summaries of each company and
the contact details of key executives.
Or feel free to contact me directly.
Brand
Selection
Criteria
Our proprietary BrandZ™ brand
valuation methodology makes the
Top 50 Most Valuable Indonesian
Brands the definitive study of brands
in Indonesia. The uniquely consumerfacing BrandZ™ methodology
combines extensive and on-going
consumer research with rigorous
financial analysis. (See page 140 for
the full methodology and criteria.)
We gathered brand perceptions from
consumers across the Indonesian
market, in both urban and rural areas,
and asked about brands with all kinds
of ownership structures: individual
private brands, family-owned
conglomerates, MNCs (Multinational
Corporations), and SOEs (State Owned
Enterprises). We selected brands
that met either of the two qualifying
criteria: The brand was originally
created by an Indonesian enterprise
and is owned by an enterprise listed
on a credible stock exchange; or the
brand is owned by an enterprise listed
on Jakarta Stock Exchange.
This approach produced a carefully
conceived ranking of brands in 11
consumer-facing categories, such as
home care, personal care, food and
dairy, and soft drinks. The ranking
does not include any business-tobusiness brands, regardless of value,
because they are outside the scope of
this report.
To learn more about the BrandZ™
valuation methodology, please
contact:
Elspeth Cheung
Global BrandZ™ Valuation Director,
[email protected]
David Roth
CEO The Store WPP, EMEA
[email protected]
Twitter: davidrothlondon
Blog: www.davidroth.com
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WHERE EUROPEAN CLIPPERS ONCE DOCKED IN SEARCH OF SPICES
I N T E R N AT I O N A L B R A N D S S E E K A S H A R E O F G R O W I N G C O N S U M E R W E A LT H
SECTION
INTRODUCTION
Introduction OVERVIEW
SECTION 01
INTRODUCTION
OVERVIEW
NEW ERA OF
GROWTH AND
TRANSFORMATION
Modern Indonesia is being shaped by sizeable forces – some
old, some new – and to understand their effects is to begin to
appreciate the changing expectations and opportunities of the
Indonesian consumer market.
This is a land of contrasts and
contradictions. There is tension
between young and old, modernity
and tradition, aspiration and
risk-aversion.
Overwhelmingly,
though, this is
a market being
driven forward
by the youth of
its population
– among the
youngest in the
region – and by
the energy of its
people.
There is growing
wealth in
Indonesia; many
millions of people
are enjoying their
first taste of discretionary spending,
as they move from subsistence living
to stability and the ability to plan.
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The ranks of the middle classes,
meanwhile, are expanding apace, and
are forecast to represent between
130 and 140 million people by 2030.
At the top end
of the income
spectrum, a small
but significant
group of superrich are living truly
luxurious lives.
This contrast,
not just between
rich and poor
but also between
the country’s
rich heritage and
the onslaught of
modern life, is
evident all over
the country.
Cybercafés, designer boutiques and
traffic jams are juxtaposed with the
simplicity of life for those who remain
reliant on the land and the sea for
their livelihoods. Tiny street-side
warungs – family-run shops often
crafted from wood – still have a
place in a retail landscape that runs
from wet markets to gleaming malls.
Urbanization is intensifying, as
Indonesia’s cities act as beacons
of opportunity; the number of
Indonesians living in urban areas
is expected to reach 71 percent of
the total population, or 209 million
people, by 2030. And while citydwellers have much in common,
there are still significant distinctions
between the country’s urban centers.
Jakarta is the country’s financial
powerhouse, a cosmopolitan center
with a worldly population, while the
city of Yogyakarta, just an hour’s
flight away, has a distinctly different
flavor, retaining greater closeness
to Javanese heritage and traditional
values.
Introduction OVERVIEW
SECTION 01
INTRODUCTION
But differences such as these have
always been synonymous with
Indonesia. Diversity runs deep
through this nation, which unites
17,000 islands, 700 languages and
dialects, and 300 ethnicities.
What’s exciting now is the sense
that Indonesia is entering a new,
pivotal stage in its development,
and that the consumer and brand
landscape is, therefore, on the cusp
of tremendous change.
Just five years ago, building a brand
in Indonesia tended to involve
two steps: first, ensuring national
distribution of the product, and
second, achieving widespread
visibility on television. Those days are
gone, and a very different dynamic
is at work.
Consumers are now far more
sophisticated and selective; they
expect a more complex relationship
with the brands they make part
of their lives, and they are being
influenced by an ever greater range
of media – often using several at the
same time.
For the businesses seeking to build
brands here, these winds of change
signal a great opportunity. Not only
do people have more money to
spend, they are buying a greater
range of
products and
are increasingly
interested
in brands.
They’re also
increasingly
likely to
become brand
advocates;
research shows
that consumers
are 29 percent
more likely to
recommend
a brand to family and friends than
they were just three years ago.
Kantar Worldpanel data shows
that consumers are shopping less
frequently than before, but for a
more varied range of goods. In
2013, the average Indonesian family
bought from 45 different product
categories over the course of the
year – up from 43 just a year earlier.
With an increasingly alluring
consumer market, however, also
comes more intense competition
from newcomers. In 2013 alone,
there were 173 new food brands
launched
in the
country, 61
new drinks
brands, and
26 new
names in
personal
care.
This all
makes
the task
of a brand
owner more
challenging,
as they seek to be heard above the
growing chorus, but it is also more
complicated. Brands need to ask
a new set of questions: How well
does the brand meet the functional
needs of consumers? Are they
communicating the brand’s story in a
meaningful way? And how does this
combination of story and function
make people feel?
To many international brand
managers, and to the most
successful and nimble brands in
Indonesia, these are questions they
are already addressing, but they are
especially important to
appreciate now.
Indonesian people
are seeking out the
brands that help
them embrace
modernity, progress
and technology - but
without having to
sacrifice their heritage
and spiritualism.
Successful brands – both local and
international – are telling stories that
reach across the diversity of modern
Indonesia, and are helping people
navigate the tensions they manage as
their lives change.
Few Indonesian brands
have established a global
presence, but those
pioneering names expanding
across the region are doing
so from a strong position in
this complex and demanding
home market. More local
brands will, in the coming
years, start to realize
their regional and global
aspirations.
WHAT’S EXCITING NOW
IS THE SENSE THAT
INDONESIA IS ENTERING
A NEW, PIVOTAL STAGE
IN ITS DEVELOPMENT
Just four years ago,
a BrandZ™ study into what was
setting the strongest brands apart
from the competition found that
saliency played the dominant role
in consumer choice – essentially,
the ease with which a brand name
sprang to mind was the key to its
success. Now, however, the role of
saliency has declined significantly,
and it is a brand’s ability to make
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a meaningful connection with a
consumer that matters most. It is no
longer enough to be visible; brands
must have something relevant to say
after they get noticed.
Advertising has tremendous power to
help consumers identify the brands
and products that can enrich their
lives. But to advertise successfully in
Indonesia means achieving a delicate
balance between reflecting cultural
values that resonate across a diverse
nation, and at the same time being
sufficiently creative to stand out in a
cluttered advertising environment.
There remains a sizeable, long-term
opportunity for brands to grow in
Indonesia. While personal wealth is
greater and more widely distributed
than it’s ever been before, affluence
is still a relative concept, and much
potential remains unmined.
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Introduction KEY RESULTS
SECTION 01
INTRODUCTION
KEY RESULTS
SPOTLIGHT ON
OPPORTUNITIES
FOR BRANDS
INDONESIA TOP 50 TOGETHER
WORTH US$65 BILLION
The combined value of the BrandZ™
Top 50 Most Valuable Indonesian Brands
hit US$64.6 billion, not far behind the
total value of the Top 50 brands in
India in 2014 (US$69.6 billion), but just
one-seventh of the value of the Most
Valuable 50 Chinese brands this year.
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BRAND EQUITY IS STRONG
Indonesian brands are proving effective at creating a
consumer predisposition to purchase – on a par with the
most valuable Chinese brands and performing better in
this area than many leading global brands. In the BrandZ™
Power Index, a brand equity measurement, the Indonesian
Top 50 scored 210, compared with 212 in China, 222 in
India and 161 in Brazil; the average of all brands worldwide
is 100, so a score of 150 indicates that a brand is performing
50 percent better than the average brand.
BANKS AND TOBACCO ARE
BIGGEST PERFORMERS
BCA IS INDONESIA’S
MOST VALUABLE BRAND
Financial services brands occupy
24 percent of the Top 50 brands in
Indonesia by number of brands, and
banks take four of the top 10 places
in the rankings, including first and
second. Tobacco brands are unique in
Indonesia across the BrandZ™ rankings
in having such a strong presence
among leading brands, with six
tobacco brands featuring in the top 12,
and seven making the Top 50.
BCA, or Bank Central Asia, tops the
inaugural BrandZ™ Indonesia rankings,
having built its reputation over more
than 50 years in this market, during
which time it has established a network
of more than 1,000 branches around
the country. Its innovations in the
provision of card services have helped
make it one of the most widely used
consumer banks in the country. The
bank’s private-label BCA card is now
widely accepted in Singapore. BCA’s
brand value places it just outside the
Global Top 100 Most Valuable Brands;
the bank is on track to become the first
Indonesian brand to make the global
ranking.
MEGA BRANDS DOMINATE
The Top 5 brands account for 57 percent
of the total value of the BrandZ™
Indonesia Top 50, or US$37 billion. This
concentration of value at the top of the
ranking is similar to India, China and
Brazil. In contrast, the Top 5 brands in the
Global Top 50 account for only about a
quarter of the ranking’s total value.
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Introduction KEY RESULTS
SECTION 01
INTRODUCTION
TOP 5 LEARNINGS
FOR MARKETERS
Make branding a priority and reap the rewards
Now is the time to focus on branding; Indonesian consumers are
more aware of and engaged with brands than ever. They talk about brands
and recommend the ones they love. The BrandZ™ ranking shows that
businesses in Indonesia that nurture the power of their brands are four times
more valuable than those that don’t. CEOs should see a clearly articulated
and communicated brand mission as essential to growth.
Safety in numbers – the value of trust
RETAILERS PROVE
SOLID PERFORMERS
Four retail brands feature in the
Indonesian Top 50; this is not unusual
in itself, but what is interesting about
the retailers that make the rankings
here is that they are all bricks-andmortar stores, whether department
stores as in the case of Matahari
Department Store, or grocery outlets
such as Alfa, Ace and Hypermart. The
top performing retail brands globally,
and in China however, tend to be those
focused on e-commerce. The rate of
e-commerce is growing in Indonesia,
as smartphone penetration and the use
of credit and debit cards grows, but is
still nascent by world standards.
FAST-MOVING
CONSUMER GOODS
WELL REPRESENTED
Fast-moving consumer goods brands
make up 28 percent of brands in the
BrandZ™ Indonesia Top 50 – a very
high proportion when compared
to other countries’ rankings. Wellloved and highly successful homegrown noodle, water and tea brands
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feature strongly in the Top 50. Brand
strength for names such as Indomie,
Pepsodent, SariWangi, and Bimoli has
helped these brands punch above
their financial weight in the rankings.
The personal care category’s success
reflects investment by multinational
corporations, which have introduced
and developed their brands in
Indonesia.
extra value that is worth paying for. In
categories where there is one dominant
player, this premium factor is often
seen; in Indonesia, it applies to brands
such as Matahari Department Store,
Rinso, and Garuda Indonesia.
CATEGORY LEADERS
PROVE PREMIUM VALUE
Indonesia’s most valuable brands are
doing as good a job as the strongest
global brands when it comes to being
meaningfully different, and salient;
where they lag is in being lovable and
innovative. The Top 50 Global Brands
average an innovation score among
consumers of 120, while Indonesia’s
Top 50 manage just 103; likewise,
global brands achieve 131 on the love
scale, while Indonesia’s Top 50 only
get to 108. The importance of these
measures to a brand’s overall value is
clear when the Top 50 is split in half and
ranked according to their innovation
score. The top half then are collectively
worth US$51.9 billion, while the bottom
half, those seen as less innovative, are
valued at just US$12.7 billion.
Leading Indonesian brands have
strength enabling them to command
a premium price that is well above
that seen among leading brands in
other markets. The BrandZ™ Premium
Index, one of several measures that
count towards brand value, is 120
among the Top 50 brands in Indonesia,
which compares to 111 in the Global
Top 50, 104 in India’s Top 50, and 109
for the leading 50 brands in China. The
average among all brands worldwide
is 100. This does not necessarily mean
that the top brands are more expensive
than the competition, but does mean
consumers see them as providing
STRONG AND DIFFERENT –
BUT LACKING LOVE
AND INNOVATION
The value of being a trusted brand is underlined by analysis of the
Indonesia Top 50. Among banking brands, for instance, almost 90 percent
of the brand value in the ranking is concentrated at the top, among just
three brands. These three banks far outperform other banks on measures of
fairness, responsibility, and trust in the eyes of consumers. Economic crises
have shaken this market, and wary consumers seek out brands they feel are
safe. Emphasize scale, a long history, and popularity to foster consumer trust.
Emotional connections take brands to new heights
Brands that focus on making meaningful connections with consumers
can punch above their financial weight in the BrandZ™ rankings. These
connections must be about more than simply being well-known or
delivering quality and value. They must be built on emotion, and the most
successful brands deliver meaning not just through their products but
through their communications, creating emotional, memorable links that
connect with consumers’ lives.
Local relevance helps consumers straddle two worlds
Local brands dominate the Top 50, and Indonesians take tremendous
pride in home-grown success stories. But the BrandZ™ rankings also
show that multinational brands can succeed in this market by tailoring their
attributes to the Indonesian market - not just with a local look, but by making
a locally relevant connection with consumers. Multinational brands can
help consumers resolve the tension they feel between wanting to maintain
traditional values and their desire to be worldly and modern.
Innovate and prosper
Innovation in digital services and digital media investment drives
up a brand’s value. The Top 5 most valuable brands in the Indonesia
ranking invest significantly more in digital compared to the lowest-ranked
brands. Technology can make service brands more accessible, and digital
communication in this mobile-driven market is essential. Brands should
exploit multi-screen behavior by consumers to build layers of meaning –
but should still remember the value of TV, which is immensely popular
and remains an effective driver of reach.
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Introduction CROSS-CATEGORY TRENDS
SECTION 01
INTRODUCTION
CROSS-CATEGORY TRENDS
PROGRESS AND
TRADITION IN
MODERN BLEND
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THE SEARCH
FOR VALUE
A DESIRE FOR
LOCAL MEANING
Robust economic growth is putting
more money in people’s pockets,
but demand is no less intense for
great value for money. Consumers
are not necessarily buying the
cheapest products available, but
they are looking for more efficient
ways to buy, and want to strike the
right balance between quality and
price. Kantar Worldpanel Indonesia
has tracked increasing demand for
large pack sizes on FMCG products
ranging from biscuits to shampoo,
which deliver better overall value
for money. Even relatively affluent
consumers are on the lookout for
great value, and are increasingly
buying budget brands. In fact, urban
households are more likely than
those in rural areas to buy brands that
position themselves as economical,
and top-tier households (A or B on
the SES socio-economic scale) are
almost twice as likely to buy these
brands as are those shoppers at the
lower end of the scale.
Across every aspect of their lives,
Indonesian consumers tend to be
drawn to products and brands that
they perceive to be aligned with
their own lives and beliefs. While this
puts local brands in a strong position
to make meaningful connections
with consumers, it also provides
opportunities for international brands
that can provide a locally relevant
expression of their brand – and, in
some cases, a localized version of
their product – that feels at home in
this market. McDonald’s has localized
its offering with rice-based meals,
British American Tobacco makes
hand-made kretek clove cigarettes
for this market, and to many people,
Kit-Kat and Oreo are fondly regarded
because they have generated a sense
of familiarity that has a local ‘feel’ to it.
PREMIUMIZATION
Demand for aspirational brands and
products are fuelling the growth of
premium goods across categories,
from cars and fashion, to soap
and chocolate. Consumers are
willing to pay for the brands they
see as providing something that
goes beyond simply meeting their
needs. Those who can afford it are
buying top-end BMWs and premium
Samsung mobile phones, while
others are treating themselves to little
luxuries. Kantar Worldpanel found
sales of premium liquid soap, for
instance, were up 39 percent in a
year (2013), while premium chocolate
sales rose 35 percent and top-end
mouthwash saw a 15 percent surge
in sales in the same period. Premium
instant coffee, toothpaste and baby
products are also on the rise. This is
not simply about consumers splashing
out; premium products must prove
they deliver something extra that
justifies their premium pricing.
CONVENIENCE
People are leading increasingly
complex and busy lives, so are keen
to buy products that help them free
up time, either for time with family
and friends at home, or for the
pursuit of hobbies, entertainment
and socializing. Many city-dwelling
couples now both go out to work,
and commute times can be long,
so ready-to-heat and ready-to-eat
meals, canned and frozen food and
disposable nappies are all enjoying
growth. At retail, shoppers are drawn
to services that help them save time
in store or make the experience
simpler. While urbanization is behind
some of the drive for convenience,
consumers outside major centers
are also seeking out time-saving
products and services, as they seek
an improved balance between work
life and their personal lives.
NEW SPHERES
OF INFLUENCE
Television remains the cornerstone of
national campaigns for mainstream
products and brands, providing
unparalleled reach across Indonesia.
But increasingly, particularly among
young consumers, digital media is
providing new sources of information
and inspiration. Given the nearubiquity of mobile phones and the
popularity of social media, online
forums are alive with opinion, and
the sources of influence are many
and varied. More than 62 million
Indonesian consumers are on
Facebook, and local social networking
site Kaskus has nearly 6 million. While
only about one in four mobile phone
users currently has a smartphone,
that figure is rising rapidly, and with it,
so will the effect of online word-ofmouth and digital advertising.
E-COMMERCE
This is still a nascent area of retailing
in Indonesia, and is far from a
mainstream activity, but it is one that
is rapidly growing as smartphone
penetration and trust in buying online
increase. KADIN Indonesia, the
country’s Chamber of Commerce,
expects that by the end of 2015, 10
percent of internet users in Indonesia
will be buying online, as consumers
do banking online and buy groceries
and big-ticket items via e-commerce.
One of the biggest hurdles to growth
is the fear of being duped, along with
a lack of clarity over e-commerce
regulations, the complexity of
delivering items across a sprawling
network of islands, and the fact
that many consumers don’t have a
payment card they can use online
to complete a transaction. However,
there is a sense that a tipping point
for e-commerce is near, as individual
brands launch e-commerce ventures
and as B2C e-commerce companies
such as Lazada Indonesia, Rakuten,
and eBay gain users.
23
Introduction KEY TAKE AWAYS
SECTION 01
INTRODUCTION
KEY TAKE AWAYS
BUILDING
VALUABLE
BRANDS IN
TODAY'S
INDONESIA
MAKE PROMISES,
NURTURE TRUST
Trust, reliability, and authenticity are
essential credentials for a successful
brand to possess in Indonesia.
Brands need to ensure that the
promise of their brand is aligned
with what is actually delivered, as
only then will trust be established.
Brands such as Garuda Indonesia,
Sunsilk and Indomie have done
this over many years; Oreo and
Milo have achieved high levels
of trust more recently by finding
a locally relevant expression of
their international DNA, making
a promise that speaks directly
to Indonesian consumers, and
delivering on that promise.
MATCH ASPIRATION
WITH AFFORDABILITY
Consider how different levels
of affluence affect consumer
preferences; there’s being rich,
and then there’s being really rich.
For huge numbers of Indonesians,
owning a motorcycle is no more a
badge of wealth than owning a pair
of shoes – it’s simply essential. Having
a car, however, means someone has
reached a new level of economic
success, but it’s having a car with your
own driver that shows you’ve really
arrived. Consumers right across the
income spectrum may have similar
desires, but need different ways
of realizing them. Mobile phones,
personal care products, innovative
food items, and even cars are just a
few of the categories that span a broad
range of budgets, from economy to
premium, so tailor your range, pricing,
and emotional benefits accordingly.
24
HELP CONSUMERS
MAKE SMART DECISIONS
Indonesian consumers are extremely value-conscious, and while
traditional price discounts and sale periods may help attract buyers, what
consumers appreciate more are brands that they feel are providing an
honest product or service at the right price. Consumers in some of the
poorer, more remote areas buy low-cost products out of necessity, but are
looking beyond headline prices for the bundle or deal that provides the
best value. More affluent consumers are just as keen on buying economy
brands when they feel they are not sacrificing quality for a good deal.
Marketers need to understand what is perceived as good value in a given
category, align with that definition and deliver it.
STUDY THE
YOUNG, VIEW
THE FUTURE
Indonesia has one of the youngest
populations in the region, with a
median age of 29 – far younger
than China (36) and the U.S. (median
age 38). Young people have grown
up with democracy, freedom, and
access to information in a way that
the older generations, who lived
under a dictatorship, could only
have dreamed of. They have a taste
for the newest products, from food
to technology, and are prepared to
pay for them. They have, however,
inherited something of their parents’
and grandparents’ sense of frugality
– of being prepared for a rainy day.
So, while they are less risk-averse
than older people, there is little
ostentatious spending when it could
be construed as wasteful indulgence.
Help young Indonesians balance their
desire for the new with their fondness
for tradition.
25
THE APPETITE FOR SOCIAL MEDIA IS INTENSE
R E F L ECT I NG T H E SO CI A L NAT U R E OF I N D ON E SI A N SO CI E T Y
SECTION 01
INTRODUCTION
KEY TAKE AWAYS
MIND THE CLUTTER,
WATCH FOR GAPS
Indonesia is a market that is now crammed with
advertising, to the extent that Maxus Indonesia report
that TV audiences are now subjected to an average
of 13 to 14 ads in a typical prime-time ad break. While
the color and dynamism of advertising is welcomed as
novel entertainment in some of the more remote parts
of the country, in the cities, especially in the capital,
there’s weariness among consumers who feel they
are bombarded by advertising that has become so
ubiquitous it is no more effective than wallpaper. The
importance of creating advertising that can cut through
this clutter is, therefore, vital to appreciate, particularly
as the overall investment being made in advertising
continues to rise, and is forecast by GroupM to grow a
further 13.5 percent in 2015.
PREPARE FOR E-COMMERCE, BUT DON'T
LOSE FOCUS ON PHYSICAL RETAILING
E-commerce is the shopping mode of the moment, but it is only practised by
a tiny proportion of the population despite gradual progress being made in
delivery services, the ability to pay online, and in overall consumer trust that
shoppers will receive the goods they’re paying for. Physical stores remain where
the action is, and while a shift from wet markets and neighborhood warungs
towards the modern trade is well under way, independently owned general
stores, cafés, restaurants and clothing shops are where many people spend
the majority of their money. The appeal of the modern trade to marketers is
the ease of gaining scale and consistency of display in an efficient way, but
distribution and promotion through more traditional retailers remains important.
HELP CONSUMERS AVOID
AMBIGUITY – PROVIDE
PRAGMATIC SOLUTIONS
There are few places where it matters more than in
Indonesia that a product “does what it says on the tin”.
Consumers here are widely perceived to be rational
shoppers, making decisions about products and brands
based on information about what that item can do
for them – and at what price. Millward Brown’s Link™
research in Indonesia reveals that the most persuasive
ads are characterized by a demonstration of the product
benefits and composition. In fact, 82 percent of the
most persuasive ads demonstrate the benefits of a
product, compared to only 66 percent of the lowest
performers. Marketers must demonstrate that their brand
delivers clear benefits – and, of course, great value.
DON’T RELY SOLELY ON
FUNCTION TO SELL
ALIGN WITH LOCAL
VALUES AND ‘FEEL’ LOCAL
Function is an important and powerful part of the
story for Indonesian consumers, but brands risk falling
behind if they rely solely on a compelling expression of
their functional benefits in their advertising. Ultimately,
the most powerful communication in Indonesia has a
balance of associations, both practical and emotional
– rooting an emotionally compelling brand story in
a core product truth. In Indonesia, half of the most
persuasive advertising strikes this balance between
function and emotion, compared to 43 percent
globally. A great example of this in action is chocolate
milk brand Milo, which shows mothers supporting
their children’s sporting achievements by giving them
the nutritious energy of Milo.
Give your brand a local identity – even if it’s a global
success – by offering something new and aspirational
that works with, rather than in opposition to, respected
traditions. Millward Brown Link™ data shows that
Indonesia has the lowest receptivity of any Southeast
Asian market to ads coming from other markets in
the region, with only 39 percent of high-performing
regional ads also performing well here. But adding a
local face to an international campaign is only getting
localization half-right. Making a real connection means
relating to consumers with a human truth that feels
relevant and familiar – but without using tired national
stereotypes. International brands can achieve this just
as well as local brands; global shampoo brand Sunsilk,
for instance, is fondly regarded as an Indonesian favorite
because it ‘feels’ local.
BE MINDFUL OF REGIONAL
VARIATION IN ATTITUDES
While Jakarta is the center of commerce and is where
trends are set for many other cities, it’s important
to remember that only 4 percent of the country’s
population calls the capital ‘home’. Businesses seeking
to build national brands need to look to other major
cities and beyond, and consider the differences
between each. While Jakarta is a very modern city
and is quite westernized, the central Javanese city of
Yogyakarta – another major center on the same island
– has a more traditional feel to it, and is a place where
politeness, hierarchical structures, and respect for one’s
elders is more apparent. Cynicism regarding advertising
is growing in the capital, while in places such as Medan,
Padang, Pontianak and Bodetabek, consumers are
enthusiastic about ads generally and are inclined to find
them entertaining.
EMPHASIZE RELATIONSHIPS,
NOT INDIVIDUALITY, IN
COMMUNICATIONS
For many Indonesians, there is an emphasis on
collective achievement and smooth interpersonal
relationships, ahead of individual success. People
feel more confident when they’re part of a group.
There is also a great deal of respect for authority,
which means people appreciate being given clear
guidance on how to do something, and will avoid
uncertainty and ambiguity when they can. Accepted
wisdom has it, therefore, that the best way to make a
great Indonesian ad is to feature a harmonious family
around the dinner table.
28
29
SECTION 01
INTRODUCTION
KEY TAKE AWAYS
USE MULTI-SCREENING
TO YOUR ADVANTAGE
The scale of the ‘multi-screen’ opportunity in Indonesia is
huge; of 26 countries in Millward Brown’s AdReaction study
in 2014, Indonesia was found to have the fifth-highest level
of multi-screening behavior. In fact, one in five multi-screen
minutes in Indonesia is spent 'meshing' – simultaneously
looking up content related to their activity on another
screen – which equates to over an hour a day. Ambitious
brands must invest in building a layered relationship with
consumers across multiple touch-points simultaneously
if they are to keep pace with changing consumer habits.
TV remains an unparalleled driver of reach and, therefore,
saliency, but non-TV screens such as mobile can be
the perfect vehicle for a more layered and meaningful
conversation with consumers.
LOOK BEYOND THE
FAMILY DINING TABLE
The propensity for Indonesian people to identify with
groups has grown beyond the family group, and marketers
should consider the new ways in which individuals think
about togetherness with other groups of people. Friends,
work colleagues and wider communities have become
a second family for many, especially young people who
have moved away from their family home to study or to
work. For them, togetherness can mean hang-out time at a
cinema or shopping mall, or time playing sport or pursuing
another shared interest. For older people and couples
without children, social gatherings with workmates are a
little-acknowledged opportunity to identify with a group. At
the same time as Indonesians are forming groups outside
the family, dynamics within family homes are changing,
with spaces and devices becoming more personal rather
than communal.
GO DIGITAL, BUT ON
INDONESIAN TIME
USE TELEVISION WISELY –
THEN STOP SPENDING
RESPECT RELIGION,
BUT DON’T PREACH
Television attracts the lion’s share of advertising investment
for a very good reason: it helps brands to achieve national
reach in an efficient way. And, despite the rise of digital
media, TV will continue to be the cornerstone of great
national ad campaigns in Indonesia for quite some time. But
a bigger TV investment does not guarantee a bigger impact;
while the optimal number of exposures to an ad required
to affect brand KPIs is high by global standards, once that
frequency has been reached, there is very little additional
lift for any additional exposure. So, establish what the ideal
level of TV exposure is for your brand, and then look to
other media to complement that investment. For many large
brands, anything from 10-50 percent of their TV campaign
budgets can end up as wastage; resulting in no incremental
impact on brand or sales measures.
Everyone is getting connected, but internet speeds in Indonesia
remain among the slowest in the world. Broadband outside
Jakarta is rare, and average connection speeds across the
country are just 1.9Mbps, slower than India, China, the
Philippines, and Vietnam, and just 10 percent of the average
speed achieved in Singapore, and an even smaller fraction
of the world-leading connections achieved in South Korea
(22.2Mbps in Q4 2014). In designing web sites and e-commerce
solutions, focus on functional elements and provide easy
navigation to save users loading unnecessary pages by mistake.
Use images sparingly and in lower-resolution formats than
you might otherwise, and be even more judicious about using
video. It is possible to run attractive and effective sites that work
over low-bandwidth connections.
BUILD OPPORTUNITIES
FOR CO-CREATION
Indonesians see their digital devices as tools for
creation, not just consumption. Brands seeking
true engagement with consumers – especially
those with a young and tech-savvy target market
– should encourage that creativity to find a
voice that is linked to their offering. Coca-Cola
Indonesia is a leader in this field, and has shown
that by providing brand advocates with the tools to
create their own content, a proliferation of brandcentric communication online results. The volume
of user-created, brand-related content often far
outweighs that generated by a brand itself, and
has a different level of stickiness and credibility
when shared because it is the work of a friend.
Indonesia is home to the largest Muslim population
in the world, and brands need to be mindful of this in
their communications. Local cosmetics brand Wardah,
for instance, has successfully reshaped the Indonesian
cosmetics category with strong halal claims about
its products, providing women with the chance
to express themselves and feel beautiful without
compromising on their values. But this is a delicate
path to tread, and in most categories, consumers like
brands to acknowledge their religious views in a subtle
way, but don’t like the idea of religion being used as
a sales platform. Financial services is perhaps one of
the few exceptions to this, as many banks offer Islamic
products, though, even then, the most successful
brands steer clear of overtly religious messages.
30
31
SECTION 01
INTRODUCTION
KEY TAKE AWAYS
GET MOBILE
Indonesians spend, on average, a remarkable three
hours a day using their mobile phone – more time than they
spend watching TV. Among young people, the role of mobiles in
people’s lives is even stronger, with 16 to 24-year-olds spending
an average of four hours a day on their phones, often while
doing something else at the same time, such as watching TV.
As in other fast-growing markets such as China and India, many
people’s first experience of the internet in Indonesia is via mobile,
and often using a feature phone rather than a smartphone. The
vast majority of social media users are connecting via mobile,
rather than a desktop or laptop. The power of mobile marketing,
especially when linked to television, is not to be overlooked.
THINK SOCIAL –
CONSUMERS DO
This is a country that is social by nature, and Indonesians
with access to the internet are seizing upon the opportunity
to socialize digitally. More than 62 million Indonesian
consumers are on Facebook, local social networking site
Kaskus has nearly 6 million, and Twitter and LinkedIn are
also widely used. These sites operate freely in Indonesia, in
marked contrast to China, and are becoming increasingly
popular as the number of people upgrading to smartphones
continues to climb. Social networking can be a key tool
for improving brand engagement, and these platforms,
which provide not just reach but precision targeting by
demographics, preferences, social connections and
behavior, provide an attractive proposition for advertisers.
32
THINK LONG-TERM
There are millions of Indonesians who won’t be
in the market for brands for several years. Strong economic
growth in Indonesia has helped reduce poverty from 24 percent
of the population in 1999 to 11.3 percent in 2014, as defined
by the World Bank, but there remain an estimated 68 million
Indonesians living just above the poverty line, generating just
over the Rp 11,000 (US$1) per person per day baseline income.
These people are vulnerable to small shocks, such as illness or
job loss, which can very quickly put them in poverty. Others, who
are safely within the consuming class, will upgrade from basic
to premium goods as their wealth grows. Now is the time for
brands to build familiarity and trust. They should sow the seeds
of aspiration, and meet that aspiration with the products and
services that fit consumers’ needs as their lives change, whether
it be with shampoo, biscuits, a restaurant meal, a scooter or a flat.
Introduction ECONOMY AND DEMOGRAPHICS
SECTION 01
INTRODUCTION
ECONOMY AND DEMOGRAPHICS
CENTERS OF
POPULATION
2.182 Million
Medan
LAND AREA
ECONOMY
1,904,569 Sq. km
$856.1 Billion
or approximately 735,000 square miles
GDP
(about the same as the UK, France, Germany, and
Spain combined – or slightly smaller than the US.)
(2014 est.) about the same as the Netherlands
Foreign Direct Investment (US $ Bil.)
5.2%
$10,200
GDP growth rate
GDP per capita
(2014 est.)
(2014 est.)
18.4
258.2
Indonesia
China
28.2 12.2
India
S.Korea
Ease of doing business
Indonesia ranks 114th out of 189 countries,
with 1 being the most business-friendly
806,000
Samarinda
1.454 Million
Palembang
706,000
Balikpapan
1.429 Million
Makassar
POPULATION
2.513 Million
2.834 Million
Bandung
Surabaya
10.176 Million
JAKARTA
253.6 Mil.
1.614 Million
Semarang
53%
Total population
Urban population
(% of total population)
2.69%
Rate of urbanization
Population by age
0-14 years
26.2%
15-24 years
17.1%
25-54 years
42.3%
55-64 years
7.9%
65 years and over
6.5%
(annual rate of change (2010-15 est.)
Productive Age 66%
Below 30 55%
Working Age 51%
Kids and Teens 37%
Millennials 34%
Median age
Literacy rate
29.2yrs 36.7yrs 27yrs 27.7yrs
(% of population over 15 years
who can read and write)
92.8% 95.1%
Indonesia
China
India
UK
Indonesia
Mobile subscriptions per 100 people
15.8
84.2
67.0
125
125
118
111
Indonesia
US
Malaysia
Indonesia
UK
Japan
S.Korea
51.6
45.8
15.1
96
89
71
Brazil
China
India
US
China
India
93.1%
China
Indonesian
smartphone users
(% of mobile users in 2015)
29%
Malaysia
Japan
The national population is forecast by the United Nations to exceed 322 million by the year 2050.
34
Internet users per 100 people
Malaysia
37.6yrs 40.4yrs 46.1yrs
US
TECHNOLOGY
Sources: GroupM, World Bank, CIA Factbook, OECD, Statista
35
Introduction HISTORY
SECTION 01
INTRODUCTION
HISTORY
CENTURIES
OF TRADING
DELIVER DIVERSITY
OF MODERN
INDONESIA
Dutch colonization
Spice trade brings
new influences
7th century to 17th century
The islands of what is now called Indonesia have been a center
of commerce for many centuries, thanks to their proximity to
India and China. Traders brought new settlers and new ideas to
the area, all gradually absorbed by the islands’ residents. Muslim
traders’ legacy makes Indonesia home to the world’s largest
Muslim population today. Hindu and Buddhist communities
from around Asia have also flourished on the islands, and
Christianity was brought by European explorers attracted by
the islands’ exotic spices, particularly nutmeg, which was once
one of the world’s most valuable commodities.
36
17th century to 1942
While Portuguese traders are thought to have been the first
Europeans to have regular contact with the people of Indonesia, it
was the Dutch who began to colonize the islands in the early 17th
century, gradually consolidating their rule over the next 200 years. The
United East India Company amalgamated the many Dutch businesses
competing for trade through the islands, and established the city that
is now Jakarta as the capital of its Asian trading network. When the
company collapsed, the Dutch national government took control,
uniting the archipelago as one country, named the Dutch East Indies,
in 1900. Many areas of modern Indonesia remained independent of
Dutch rule, however, and the colonial era was punctuated by unrest
due to areas of strong local resistance to foreign rule.
Strong economy emerges after years of upheaval
The 17,000-plus islands that make up the Indonesian archipelago have been a center
of trade in the region since the 7th century, delivering not just immigration from around
the region, but also an exchange of culture and ideas. Present-day Indonesia brings
together hundreds of distinct ethnic groups, with a range of languages and religious
beliefs. Recent years have seen economic volatility, terrorism and political unrest – but
the fourth-most-populous country in the world is emerging from this period of hardship
a vibrant, youthful nation, and is now Southeast Asia’s biggest economy.
Road to
independence
The Suharto years
1942 to 1967
General Suharto became Indonesia’s
president in March 1967, with his New Order
administration supported by the USA. Years
of significant economic growth followed,
encouraged by a newly outward approach
to foreign relations and efforts to build
relationships with other countries in the
region. Indonesia is a founding member of
the ASEAN economic alliance, and restored
links with China in 1990 after a lengthy freeze.
New Order was, however, widely accused of
corruption and the suppression of political
dissent, and when the country was battered
by the Asian financial crisis of the late 1990s,
popular protest erupted and forced Suharto
to resign, in May 1998. Shortly afterwards,
East Timor voted to secede from Indonesia,
ending 25 years of military occupation there.
At the height of World War Two in Asia, Japan
occupied the islands of Indonesia, bringing
Dutch rule to an abrupt end and giving rise to
a push for independence that had previously
been suppressed. Immediately after the
surrender of Japan in 1945, nationalist leader
Sukarno declared independence and became
president. The Dutch were reluctant to
relinquish their hold on the islands, however,
and it was only after four years of at-times
brutal fighting and international diplomatic
pressure that the Netherlands agreed to
transfer sovereignty. Indonesia became an
independent nation with Sukarno at the helm.
1967 to 1998
A new path
1999 to present day
Legislative elections were held in 1999,
and the democratic process has gradually
been strengthened in the years since then,
with the first direct presidential election
held in 2004. Political instability and
corruption have waned, and the Indonesian
economy has rallied. Freedom of speech
and freedom of the media have increased
significantly, though the country has had
to contend with terrorism – most notably
the 2002 Bali bombings, and natural
disaster. The Boxing Day tsunami in 2004 is
widely thought to have killed more people
in Indonesia than any other country –
about 170,000 – and to have displaced
many more. Separatist movements in the
provinces Aceh and Papua have also led to
armed conflict. Modern Indonesia is now,
however, largely peaceful, prosperous and,
thanks to mobile and web technology –
informed and connected.
37
I N D O N E S I A’ S N AT U R A L R I C H E S F U E L E X P O R T S
A N D ACT A S A M AGN E T FOR I N T E R NAT IONA L TOU R I SM
Introduction MEDIA SPENDING
SECTION 01
INTRODUCTION
MEDIA SPENDING
DIGITAL WINNING
LARGER SLICE OF
GROWING MEDIA PIE
Television has always been the media
darling of Indonesian advertisers,
consistently accounting for about 65
percent of total budgets. But it’s digital
media that is enjoying the strongest
growth in this rising market. Digital
media spending is forecast to rise by
39.7 percent in 2015, giving digital 8
percent of the total advertising market
– still well behind the share enjoyed by
television and newspapers, but ahead
of magazines, radio, outdoor and
cinema. Investment in digital has been
rising at rates of up to 200 percent a
year over the past decade, as internet
penetration intensifies and as more
people upgrade to smartphones.
More than 62 million Indonesian
consumers are on Facebook, and
local social networking site Kaskus,
Twitter and LinkedIn are also widely
used.
While the growth of digital has come,
to some extent, at the expense of
magazines and outdoor, which
have seen declines in their share of
the advertising pie, the amount of
investment in all media has still been
rising every year, thanks to doubledigit growth in the overall ad market.
Total media investment is forecast to
grow by 13.5 percent in 2015, reaching
31.8 billion Rupiah (US$2.6 billion).
3%
Education
Real Estate
2%
3%
Consumer Services
Retail
1%
3%
Clothing
Finance
16%
3%
Personal Care
Household Equipment
4%
14%
Household Care
4%
Media spend by
sector (2013)
Beverages
Leisure
6%
13%
Pharmaceutical
Food
7%
Ad spending by media
2005
2%
2015
Auto
TV68.9%
Radio2.1%
Newspapers20.6%
Magazines4.1%
Cinema1%
Outdoor2.9%
TV65.5%
Radio2.4%
Newspapers17.8%
Magazines2.9%
Cinema0.4%
Outdoor3%
Internet0.5%
Internet8%
12%
7%
Public
Communications
% shares of media
1.1%
2%
4%
5%
10.6%
17%
2012
24%
2013
24%
2014
2015
Estimated
29%
29%
33%
36%
249,000
252,000
254,000
256,000
Adult population
Adult population
Adult population
Adult population
59,600
72,700
83,600
93,400
Adult internet users
Internet Penetration
Smartphone penetration
Tablet penetration
(000s)
(000s)
Innovation in digital services and digital media
investment drives up a brand’s value. The
Top 5 most valuable brands in the Indonesia
ranking invest significantly more in digital
compared to the lowest-ranked brands. Banks,
especially, are using digital technology to innovate, and about a quarter
of all bank transactions are already carried out digitally. The importance
of digital innovation and communication is set to rise. Indonesian
digital ad spend is now only 8 percent, but we can look to China for
signs of what is to come. In China, digital represented 8 percent of all
ad spend in 2009, a figure that had risen to 31 percent by 2014.
Brands in Indonesia should plan for greater investment in digital media,
exploiting multi-screening behavior by consumers to build layers of
meaning – but not abandoning television, which is still widely viewed
and remains an effective driver of reach.
THEORY IN ACTION
The top-ranking brand in the
Indonesia Top 50 is the bank
BCA, which has been a pioneer
in mobile banking in Indonesia.
BCA’s ad spend in recent years
has been increasingly focused
on digital, both for building
brand awareness and for lead
generation. BCA uses social media
platforms to help it understand
consumers’ needs, especially
young people, and combines
social learning with other data to
drive new service development.
3 HOURS AND 54 MINUTES
Average time spent on social media per day
Source: GroupM
40
41
Introduction BRAND VALUE
SECTION 01
INTRODUCTION
BRAND VALUE
Indonesia Top 50 breakdown
VALUE IS
CONCENTRATED AT
THE TOP OF THE LIST
The value of the BrandZ™ Top 50
Most Valuable Indonesian Brands
2015 is concentrated at the top of the
ranking and among just two dominant
categories. The Top 5 brands in the
ranking together account for 57 percent
of the value of the Top 50 brands,
and three of those five brands are
banks. The Top 5 brands are BCA, BRI,
Telkomsel, Mandiri and A Mild.
Banks and other consumer finance
brands together account for US$27.5
billion of the US$64.6 billion value of the
Top 50, while tobacco brands account
for a further US$14.8 billion. Telkomsel
is the only telecom brand to appear in
the Top 10.
Outside the Top 5, the brands in
the Top 50 represent a broad range
of industry sectors, with strong
performances from real estate, food
and dairy, soft drinks, personal care,
retail, and entertainment brands. This
diversity of brands is not dissimilar to
the range that performs well in other
countries’ BrandZ™ rankings. Together,
the brands represented paint a life-like
picture of present-day Indonesia. The
banking and real estate sectors are
essential to how the country and its
economy are developing – telecoms
and entertainment indicate consumers’
appetite for technology and being
connected, while the prominence of
tobacco, food and dairy, soft drinks,
and personal care brands help illustrate
everyday life in this market.
Such a high concentration of brand value
at the top of the ranking is consistent with
other markets. In the BrandZ™ India Top
50, the Top 5 brands accounted for 45
percent of the value of all of the brands
ranked, and it is a similar picture in China
(the Top 5 account for 56 percent of the
Top 50’s value) and Brazil (52 percent). In
contrast, only 28 percent of total brand
value is concentrated in the Top 5 brands
in the BrandZ™ Global Top 50. The
dominance of banks in the Indonesia Top
50 is consistent with BrandZ™ rankings
in other fast-growing markets.
The Top 5 brands account for 57 percent of the total value of the Indonesia BrandZ™ Top 50.
9%
Brands 26-50
Combined Value:
US$ 5.5 Bil.
35%
Brands 6-25
Combined Value:
US$ 22.4 Bil.
15%
US$ 9,918 Mil.
13%
US$ 8,285 Mil.
10%
Categories and brands
by Brand
Value $M
Brand Value
% of Total
by Number
of brands
Number of
Brands
% of Total
Airlines
354
1%
1
2%
Banks
27,521
43%
12
24%
Entertainment
249
0%
1
2%
Food and Dairy
1,461
2%
4
8%
Home Care
949
1%
1
2%
Personal Care
3,344
5%
7
14%
Real Estate
3,098
5%
8
16%
Retail
3,327
5%
4
8%
Soft Drinks
1,061
2%
2
4%
Telecom Providers
8,417
13%
3
6%
Tobacco
14,794
23%
7
14%
Category
Businesses in Indonesia that nurture the
power of their brands are four times more
valuable than those that don’t. Branding
affects the bottom line: the 25 brands with
the strongest Brand Power scores in this
ranking are together worth US$51 billion, while the remaining 25 have
a combined brand value of US$13.6 billion. Brand Power is a BrandZ™
metric of brand equity – a brand's ability to predispose a consumer to
select a brand and pay a premium for it. However many Indonesian
brands are yet to recognize the importance of building a brand
beyond establishing a reputation for price and availability.
Now is the time to focus on branding; Indonesian consumers are
more aware of and engaged with brands than ever. BrandZ™ research
shows that 75 percent of people now recommend brands to family
and friends. That figure was 45 percent just four years ago. In this new
landscape, CEOs should be asking themselves a new set of questions:
how central is brand building to my business growth strategy in
Indonesia, do we clearly articulate our brand mission, and are we
communicating that mission clearly?
US$ 6,373 Mil.
10%
57%
TOP 5 BRANDS
COMBINED VALUE:
US$ 36.6 BIL.
42
US$ 6,153 Mil.
9%
US$ 5,882 Mil.
THEORY IN ACTION
Telkomsel is ranked number three among Indonesia’s most valuable
brands. It dominates the Indonesian telecoms category with a strong
commitment to brand-led growth. Its “Go Discover” mantra gives the
brand a compelling and unifying purpose – one that is communicated
and amplified through consistent messaging across multiple
touchpoints.
Financial services brands make an
extremely strong showing in the
Indonesian rankings, with 12 brands
making the Top 50, and three banks
featuring in the Top 5. Financial
services brands together account
for 24 percent of the Indonesian Top
50 by number of brands – exactly
the same proportion as was seen in
India, while in Brazil the figure was
12 percent and in the China Top 100,
they comprised 15 percent of the
index.
Unlike other markets, tobacco brands
feature heavily in the Indonesian
rankings, with seven brands in the
index – six of them in the top 12. In
no other country’s BrandZ™ rankings
have tobacco brands featured, and
only one has made the Global Top
100. There are two factors at play
here: first, in common with many
other markets in Southeast Asia, the
incidence of smoking is extremely
high. Second, Indonesia is one of the
very few markets in the world where
television advertising for cigarette
brands is still allowed – albeit at limited
times of day and with restrictions on
what can be shown.
Fast-moving consumer goods brands
comprise 28 percent of brands ranked
in the BrandZ™ Indonesian Top 50,
led by food and dairy, soft drinks,
home care and personal care brands.
This is broadly comparable to what
we see in other fast-growing markets
(40 percent in India, 9 percent in
China and 14 percent in Brazil).
The strong presence of property
developers in the Top 50, with eight
real estate brands in the Top 50,
reflects the strong growth of this
sector and its role in the Indonesian
economy.
As in India, the technology sector
does not figure prominently in the
Indonesian Top 50; major global
technology players such as Google,
Facebook, Twitter, and LinkedIn
operate freely in Indonesia, and
home-grown technology companies
have not so far emerged with
anything more compelling. Techrelated brands that do make the Top
50 are providing telecom services.
43
E - C O M M E R C E I S T I N Y B U T F A S T- G R O W I N G
WHILE ONLINE RESEARCH IS FUELLING OFFLINE SALES
Introduction BRANDZ™ ANALYSIS
SECTION 01
INTRODUCTION
BRANDZ™ ANALYSIS
BRAND AGE
BRAND
OWNERSHIP
The age of brands in the Top 50 is relatively young by
global standards, if not quite as young as the China index,
which includes many technology-focused brands, which
are inherently young.
The average age of Indonesian brands
in the Top 50 is 45 years old, though
there are some very old brands
whose heritage is not reflected in this
average. The second-highest ranked
brand, the bank BRI, for instance,
is more than a century old, and Dji
Sam Soe, the brand of clove or kretek
cigarettes that ranks ninth in the Top
50, dates back to 1913.
To be eligible for inclusion in the
Top 50, brands must be owned by
a publicly listed company. In other
markets, particularly China, the brands
that have achieved such scale in just
a few years have been fast-growing
technology companies. The scarcity
of young brands in the Indonesian
Top 50 brands reflects the fact that
technology brands in Indonesia have
yet to achieve significant scale.
Those few Top 50 brands launched
since 2004 include two cigarette
brands launched by a parent
company with decades of heritage
and several older brands in their
stable, along with a property
developer. The only relatively new
brand to reflect a real shift in the
consumer market is Hypermart
(ranked 23rd and launched in 2004).
Hypermarkets began to launch in
Indonesia in the 1990s, but it was only
in the 2000s that this way of shopping
became the phenomenon it is now.
The younger half of brands in the
Indonesia Top 50 are together worth
US$29.9 billion, and the older half are
worth slightly more, US$34.7 billion.
46
Indonesia
All brands in the Indonesia Top 50
are publicly listed, but the ownership
of their shares varies; in some cases,
a portion of shares is owned by
the Indonesian government, and in
others, there is a multinational parent
company that owns a stake in the
listed company. The Indonesian Top
50 brands are dominated, in both
number and value, by private brands
– those with neither a government
nor multinational parent.
Global
China
1970
1950
1977
Year brand formed
Year brand formed
Year brand formed
(average)
(average)
(average)
45
65
38
Average brand age
Average brand age
Average brand age
There is also a strong showing by
multinational brands. Most of the
state-owned brands in the ranking
are older brands, and tend to be in
the banking sector.
Brands owned by multinationals
outperform the rest of the Top 50 on
measures of saliency and how loved
they are – but this is likely to be a
reflection of the categories in which
multinational brands have launched,
primarily FMCG categories, rather
than the fact they are owned by a
multinational parent.
The strong performance of private
and multinational brands in this
market shows that for international
brands with hopes of expansion into
Indonesia, there is ample opportunity
for success. While home-grown
brands dominate the Top 50, those
that have been imported and have
done well have proved popular
because they have adapted to reflect
local needs and values.
Ownership of Top 50 Indonesian brands
The relative youth of Chinese brands can be explained by the reforms
and opening up of the Chinese economy, a process that began in 1978.
The older brands in the index reflect the early stages of Indonesia’s
economic development; they are predominantly banks, while the FMCG
brands that have made the Top 50 came later.
Indonesia Top 50 Brands launch dates
Launch Date
Before 1967
1967-1998
1999-2015
Number of
Brands
17
29
4
Total Value
Average Value
$30.1 Bil.
$1.8 Bil.
$31.8 Bil.
$1.1 Bil.
$2.6 Bil.
$0.7 Bil.
34
10
6
Privately Owned
Multinational
Corporation
State
Owned
47
Introduction BRAND CONTRIBUTION
SECTION 01
INTRODUCTION
BRAND CONTRIBUTION
Top 10 Brands by Brand Contribution
Rank
FMCG LEAD
BRAND
CONTRIBUTION
Brand contribution measures the impact of brand alone, without financials
or other factors, in the mind of the consumer. It is the intangible asset of the
brand itself, which exists in the minds of consumers. A high brand contribution
score – on a scale of one to five, with five being the highest – suggests that a
brand is resilient and is able to increase sales volume and charge a premium.
To measure brand contribution,
we focus on the three aspects of
brands that we know make people
buy more and pay more for brands:
being Meaningful (a combination
of emotional and rational affinity),
being Different (or at least feeling
that way to consumers), and being
Salient (coming to mind quickly
and easily when people are making
category purchases). We identify
the purchase volume and any extra
price premium delivered by these
brand associations.
The brand contribution measure
is what helps make BrandZ™ such
a unique and important ranking.
BrandZ™ is the only brand valuation
methodology that obtains this
customer view through in-depth
quantitative consumer research,
both online and face-to-face,
building up a global picture of
brands on a category-by-category
and market-by-market basis.
48
Indonesia’s Top 10 brand contribution
marques are much-loved names from
FMCG categories, many of which
have been store-cupboard staples in
people’s homes for decades. SariWangi
tea has been served for more than
40 years in this market, as have
Indomie noodles, with Bimoli cooking
oil offering more than 30 years of
heritage. In personal care, Pepsodent
has a decades-long presence in
Indonesia, Rinso has clocked up nearly
half a century of service, and Dji Sam
Soe cigarettes have been around
for more than a century. All of these
brands registered a five on the brand
contribution scale, along with Garuda
Indonesia, the national airline, which
was formed in 1949. Ciputra, A Mild
and Agung Podomoro were among
the brands achieving a four on this
scale.
Average
Value
$2.6bn
Top third
Average
Value
$1.0bn
3.2
Middle third
1.4
Average
Value
$0.2bn
Bottom third
3.0
All TOP 50
Category
Brand
Average
Value
$1.3bn
Brand
Value
2015 $M
Brand
Contribution
Index
402
5
1,039
5
1
25
Soft Drinks
SariWangi
2
14
Food and Dairy
Indomie
3
50
Food and Dairy
Bimoli
110
5
4
18
Personal Care
Pepsodent
659
5
5
17
Home Care
Rinso
949
5
6
27
Airlines
Garuda Indonesia
354
5
7
9
Tobacco
Dji Sam Soe
1,767
5
8
20
Real Estate
Ciputra
484
4
9
5
Tobacco
A Mild
5,882
4
10
35
Real Estate
Agung Podomoro
267
4
Brand romance – the little
things that make a difference
Average Brand
Contribution
4.4
Top 50
Rank
There are many factors that give a brand Power
and Premium, the two contributors to a Brand
Contribution score. One of these factors is love
– a genuine fondness that consumers feel for
a brand and that helps it command a premium
over the competition and achieve higher volume
sales. While top Indonesian brands score well
on most other measures compared to leading
global brands, one area where there remains
potential for improvement is on the love score.
The average love score for all brands worldwide is
100; the most valuable 50 global brands achieve
131 on the love scale, but the Top 50 in Indonesia
generate just 108.
In Indonesia, many of the brands that punch above
their financial weight in the Top 50 perform so well
because they are loved. The most loved brand in
the ranking was Indomie noodles, achieving a love
score of 145, followed by Pepsodent toothpaste
(138), and SariWangi tea (137).
Love is not just a ‘nice to have’ factor for brands; it
makes a real difference to the bottom line. When
the strongest global brands are tracked over 10
years, the value of love becomes clear. Those
with the best love scores registered 227 percent
growth in brand value globally in the past decade,
while those with the lowest love scores grew their
brand value just 22 percent over the same period.
Top 50
Indonesian brands
Top 50 average
Brand Contribution 3
Top 5
Brand Contribution 4
4
2
Brands 6-25
Brands 26-50
Brands can punch above their
financial weight in the BrandZ™
rankings by focusing on making
meaningful connections with
consumers. These connections must be about more
than simply being top of mind, or delivering good
quality and value. They must be built on emotion,
and the most successful brands deliver meaning
not just through their products but through their
communications, creating emotional, memorable
links with consumers’ lives. FMCG brands find it
easier to build meaning as they have more frequent
connections with consumers, but the strongest of
them find ways to deepen their role in consumers’
lives. Service brands can build meaning by looking
beyond the traditional role their category plays and
develop new experiences for people to interact with
them and experience their values.
THEORY IN ACTION
Indonesia’s leading bottled water brand, Aqua, is using
its Ada Aqua campaign to give consumers reasons
to consume water more frequently by linking good
hydration with feeling alert and ready to focus on
important tasks. Aqua has a BrandZ™ score on the
meaningful index of 242 – a huge premium compared
to the average of all brands globally, which is 100. The
instant noodle brand Indomie (222 on the meaningful
index) continuously refreshes its range with new variants,
often in typically Indonesian flavors, and appeals to the
masses with its highly emotional advertising.
49
Introduction BRAND INDONESIA
SECTION 01
INTRODUCTION
BRAND INDONESIA
EMERGING FROM
THE SHADOWS
Indonesia’s image around the
world yet to live up to the strength
of positive feeling at home
These findings chime with the
BrandZ™ country personality profile
for Indonesia, compiled from the
descriptions local consumers form of
the country’s most valuable brands,
using a vocabulary of 20 personality
characteristics. Brand Indonesia,
the cumulative impression that
consumers have of the country’s Top
50 most valuable brands, emerges
as trustworthy, wise, and friendly.
Indonesian brands are rarely seen as
playful or rebellious.
country than those who have never
visited. And people aged under 35 feel
significantly more positively towards
Indonesia than those aged 35-plus – a
difference of 10 percentage points.
When asked about the culture of a
country, people rank Indonesia above
South Korea and not far below Hong
Kong and Singapore. When asked
about the people, the world ranks
Indonesians at about the same level
as people from Egypt, Russia, Saudi
Arabia, and South Africa.
Playful
Indonesia
Trustworthy
A country brand personality helps
brand owners understand how a
particular brand fits into consumers’
general view of brands across
categories. For exporters, country
brand comparisons identify the
potential areas of advantage or
disadvantage, where a country brand
can help propel or slow international
expansion.
Wise
India
Rebellious
Brazil
Friendly
China
Innocent
Global
Kind
LatAm
Adventurous
Indonesia has a relatively low profile on the international
stage compared to its larger neighbors to the north.
Indonesian brands are little-known outside Southeast
Asia, and the term ‘Made in Indonesia’ is not something
that instantly conjures up a particularly strong mental
image for consumers living outside the region.
Yet within Indonesia, there is
tremendous pride in the country, its
people, and its successful brands. At
home, to be 'Made in Indonesia' is a
highly positive attribute for a brand or
product to have. It suggests artisanal
quality, a richness of culture, and a
connection with the country’s history.
Indonesian people living or travelling
abroad often take typically Indonesian
goods with them – Indomie noodles,
kretek cigarettes, or batik fabric – and
see themselves as ambassadors for
the country and its brands.
For Indonesia, developing a strong
reputation and building the desirability
of its brands is especially important at
the moment, with the ASEAN single
trading bloc for Southeast Asian
nations due to come into being in late
2015, simplifying regional commerce.
MIND THE GAP
The divergence of opinion inside
the country and abroad about
what Brand Indonesia stands for is
illustrated in the Personality Atlas,
50
a J. Walter Thompson study of the
stereotypes and perceptions of 27
markets across the globe.
The Personality Atlas study, based
on interviews with more than 6,000
adults, highlights a ‘positivity gap’
in Indonesia and other developing
countries; essentially, people feel more
positive about their own country than
people in other markets do.
The research found that in Indonesia,
36 percent of people feel very
positively about the country. In
countries in the region excluding
Indonesia, only 9 percent feel that
way about Indonesia, and globally,
11 percent feel very positively. This
global score puts Indonesia level with
India (11 percent globally view it very
positively) and not far behind Singapore
(13 percent), South Korea (13 percent),
Thailand (16 percent), and China (22
percent). The U.S., for comparison, is
regarded very positively by 31 percent
of people worldwide, and the highest
ranked country in the world is Canada,
which has 46 percent of people
Fun
around the world feeling very positively
about it.
Globally, people feel most positive
about the people and culture of
Indonesia, slightly less so about its
brands, and even less positive about
its government. The country is most
likely to be described as religious
and content – similar words used to
describe India – and is least likely to
be called cultured or charismatic. The
country is seen as welcoming, familyfocused, polite, and religious.
Locals, however, describe their country
as fun, humorous, welcoming and
polite. Regionally, there are concerns
about corruption in Indonesia.
Sexy
Generous
Straightforward
Brand Indonesia has much
in common with Brand India
and Brand China; all are seen
as trustworthy and wise.
Indonesia is seen as more
generous and more fun.
Different
Idealistic
Creative
Assertive
Desirable
In Control
Caring
Brave
PEOPLE POWER
Perceptions globally about Indonesianmade products are similar to those
from other Southeast Asian nations;
products are seen as cheap, but of
questionable quality and subject to
poor safety standards. Indonesian
people have a much more positive
view about made-in-Indonesia goods
– about 35 percent feel very positively
about home-made products, while
globally just over 10 percent of people
feel the same about Indonesian
products.
As is the case with most countries,
people who have actually been to
Indonesia have a higher opinion of the
Be locally relevant. Local brands dominate the
Top 50, and Indonesians take tremendous pride in
home-grown success stories. But the rankings also
show that multinational brands can succeed in this
market by tailoring their attributes to the Indonesian
market. Being locally relevant is not just about looking local – perhaps by
remaking a global communications campaign with local talent. It is about
making a locally relevant connection with consumers. The 10 multinationals
in the Top 50 have an average score on the meaningful index of 156
(compared to 100 for all brands), while that for the 10 most meaningful local
brands in the ranking is 163 – an almost insignificant difference. Multinational
brands can help consumers resolve the tension they feel between traditional
values and being worldly and modern. They can offer something new,
different and aspirational, while at the same time respecting tradition.
THEORY IN ACTION
Pond’s skincare range focuses
on whitening, an important
beauty benefit for Indonesian
women. This is amplified
through advertising featuring
everyday Indonesian women and
through endorsement by local
celebrities. Sunsilk, meanwhile,
communicates the shine it can
give naturally black hair, with local
celebrity backing. It is so locally
relevant that many consumers
regard it as an Indonesian brand.
51
D I S T R I B U T I O N R E M A I N S U N I Q U E LY C H A L L E N G I N G
CONSU ME R S L I V E ACROS S 6,000 ISL A N DS IN T HE IN DI A N OCE A N
SECTION
THOUGHT
LEADERSHIP
Thought Leadership INDONESIAN NARRATIVES
SECTION 02
THOUGHT
LEADERSHIP
OUT OF THE
SHADOWS
A new perspective
on Indonesian
narratives
It would be easy to imagine that the transformation taking place in the
Indonesian consumer landscape is a simple story of progression – from
old to new, from developing to developed and, to some extent, from
local to global.
Yet to see progress in this way would
be to underestimate the complexity
of what is going on. For brands in
Indonesia, it is essential that when
they are building a narrative, they
reflect the reality of how people
feel about the change that’s taking
place around them – and within
themselves.
We have found that for many people,
the economic opportunities that
modern Indonesia offers are exciting,
but also have led to a pervading
sense that Indonesia is at a precipice.
There is nostalgia for old Indonesia, a
longing for the familiar, and a fear that
tradition is at risk of being lost as new
values gain ground.
“Everybody acts with less shame …
branded clothes and goods, high
tech, everything is like glass and
identity seems lost; increasingly
you feel like you are no longer
Indonesian”, one woman, Diah,
said during a recent Firefly research
project, reflecting the anxiety that
many Indonesians now feel.
MELDING OF WORLDS
Indonesians are experiencing a
change in how they see themselves
and they perceive others to view
them, and this is more complex than
simply to conclude that individualism
is supplanting traditional collectivism.
Lara-Lee Burn
Head of Firefly
Firefly Millward Brown
[email protected]
“Previously, wearing hijab was
perceived as only for a very straight
and solehah (pious) girl, but
nowadays everyone can wear it.
Expectations have changed – we can
still be sociable and hang out, even
though we wear hijab”, said Christina,
a student in her late teens.
Firefly Millward Brown uses in-depth understanding of
marketing and consumer behavior to identify true brand
opportunities that inspire strategic recommendations to
drive brand success.
www.fireflymb.com
56
Consumers want to move with
the times, but they do not want to
abandon their past.
The tensions driving consumer
decision-making were explored in a
recent Firefly Millward Brown research
project carried out in conversation
with Indonesians formally, and
informally, across Indonesia,
using discussion groups, digital
conversations and ethnographic
diaries. We called this study Project
Wayang, after the traditional
Javanese shadow puppet shows that
tell ancient stories from 2,000 years
ago, and that remain popular today.
The findings tell us much about
what resonates with consumers as
they manage the various cultural
pressures in their lives, and underline
the importance of brands reflecting
those consumer truths if they are to
be truly relevant.
HOME TRUTHS
There are three consumer truths we
have identified as being especially
important.
Indonesians want to feel
uplifted and uplifting. This
can look like individualism,
but is actually about managing the
desire for personal success with
the desire to support the success
of others. The traditional value of
gotong royong – providing mutual
care within a community – is just
as relevant today as ever – as is
the sense of togetherness and the
desire for cohesion. Consumers
want to feel good about focusing on
themselves without feeling selfish; a
truly Indonesian success story unites
personal success with the success
of others.
For brands, this means steering
clear of the clichéd messages of
a conforming collective without
moving too far towards the selfserving benefits of a product or
service. Bango cooking sauce has
managed this well, showing mothers
making smart choices that benefit
their families. Mothers feel pride in
their decisions, and in their ability to
pass on their expertise.
Social recommendation is
something that links old and
new Indonesia. People aspire
to have the wisdom traditionally
associated with their elders. We see
consumers express a real desire
to be ‘in the know’ and champion
the brands they love. Brand
recommendations are highly valued
by Indonesian consumers, and have
a strong influence on decisions to
try and buy new brands.
There is a real call to action for
brand owners to explore how
successfully brand messages are
being understood, internalized,
and translated into social
recommendation. Brand owners can
build relationships through social
recommendation and validation
beyond above-the-line messaging.
There is great pride in
Indonesia, its people, and
its brands, and many people
feel unapologetically Indonesian.
As more Indonesians move abroad,
they want to feel they are taking
the spirit of Indonesia with them,
spreading what it means to be
Indonesian, rather than leaving it
behind. They want to see Indonesian
brands and products do well
internationally. Makers of traditional
clove cigarettes, kretek, are among
the brands that celebrate their own
success – and are celebrated by
consumers as a result. Dji Sam Soe
is a great example of where we see
this working through the message of
Mahakarya (Masterpiece), a message
that consumers feel easily speaks
for them, and feels as contemporary
today as it ever has.
Just as the performances of Wayang
puppeteers evolve as stories are told
and retold, so too do the narratives
that engage Indonesian consumers.
57
Thought Leadership EMPOWERED YOUTH
SECTION 02
THOUGHT
LEADERSHIP
THE YOUTH
OF TODAY
The power
behind your
brand tomorrow
What is youth? Is
youth about freedom?
Self-expression? A
search for identity?
There are many
definitions of youth,
but in Indonesia,
youth is power.
With an average age of 29, Indonesia
is a nation of millennials. Throughout
Indonesia’s history, young people
have played an important role in all
the nation’s milestones, including
Indonesia’s independence back in the
1950s, and the uprising that led to the
restoration of democracy in 1998.
As our first president, Sukarno,
said, “Seribu orang tua hanya dapat
bermimpi, satu orang pemuda dapat
mengubah dunia.” A thousand old
people can only dream; one young
person can change the world.
Young Indonesians are at the heart
of the digital media explosion taking
place. The TNS Connected Life study,
which looks at the habits of internet
users, found that 99.4 percent of 16to 34-year-olds in the study use social
networks.
In this connected era, young people
have the power to play an even
greater role in the development of
their country than in the past.
Daniel B. Siswandi
Chief Strategy Officer
J. Walter Thompson
[email protected]
In 1928, young Indonesian nationalists
made what has become known as
the Youth Pledge. They proclaimed
three ideals: one motherland, one
nation, and one language. Their
declaration is marked each year on
October 28th, the anniversary of
the day it was first made. Now, the
technologically empowered youth of
Indonesia can make a digital Youth
Pledge, announcing their allegiance
to the nation through Twitter and
Facebook.
In 2010, the passion young people
have both for digital communication
and for their country came together
in a project called Indonesia Optimis.
This was an effort to modernize the
traditional August 17th Independence
Day flag raising that most Indonesians
attend during their school years,
but never bother going to again.
The campaign worked across
Twitter, Foursquare, and YouTube to
spread enthusiasm for a flag-raising
ceremony that was streamed online –
taking the event to the screens young
people held in their hands. In one
week, the site was visited by 54,000
people.
In another example of young
people wielding their tremendous
digital power, a campaign to help a
housewife fight a legal battle raised
four times the amount of money she
needed. The woman at the center
of the case was being sued for the
equivalent of US$20 million by a
hospital over claims she made about
her treatment there. The case was
dropped, and the US$80 million that
was raised has funded a foundation to
help people in similarly difficult legal
situations.
There is a danger, however, that
once marketers realize the power of
Indonesia’s youth, authenticity is lost.
Some brands have exploited young
people and their social media habits
to pursue their own agendas, and
as a result, young Indonesians have
grown cynical about involvement in
branded social media projects. This
has happened to such an extent that
some brands have given payment
or gifts in return for social media
endorsement. People with a large
enough social media following have
been able to turn their buzz into a
revenue stream as lucrative as having
a 9-5 job. But while campaigns built
on this basis build ‘likes’ for brands,
they deliver little else.
In our experience helping brands
create movements online, there are
several rules of engagement:
The cause. We needed to stay
away from carrot and stick,
and instead rely on a strong,
motivating cause that rewards
’purpose’. Daniel Pink, the
author of Drive, defined this
as people’s natural desire to
contribute to a cause greater
and more enduring than
themselves.
Be organic. The movement
needs to behave less like
marketing activity and more
like organic growth. This
requires careful consideration
of how the movement will
start, the way influencers get
involved, and the way the
brand makes its entrance.
Encourage participation.
The examples above all
demonstrate how an
important aspect of sustaining
a campaign is making it easy
for people to get involved and
participate on their own terms.
Perhaps the most important
of all, be a brand that seeks to
build a genuine relationship
with the target audience.
No number of pseudo
movements will ever replace a
genuine relationship based on
mutual respect and love.
J. Walter Thompson Worldwide, the world’s best-known
marketing communications brand, has been creating
pioneering solutions that build enduring brands and
business for more than 150 years.
www.jwt.com
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59
Thought Leadership DEMANDING CONSUMERS
SECTION 02
THOUGHT
LEADERSHIP
GIVE ME
MORE
The rise of the
demanding
Indonesian
consumer
Suresh Subramanian
Managing Director
TNS
[email protected]
The economic winds
of change, through
their impact on both
the demand side, and
the supply side, have
led to a fundamental
transformation of
consumer behavior in
Indonesia.
There are more consumers in a
position to be more demanding
than ever before of the products and
brands they choose. Rising affluence
fuelled by rising incomes means
consumers can afford to consider a
greater range of brands, and be more
demanding when they do. They want
products that offer more, and brands
that make them feel special.
The growth of new markets within
Indonesia is also expanding the ranks
of the consumer class. Residents of
urban centers in Sumatra, Kalimantan,
Sulawesi, and in burgeoning small
towns in Java, are now in a better
position than ever to buy. The
increasing number of women in the
workforce, in part due to the new
business opportunities the internet
offers, is giving women greater
individual spending and decisionmaking power, and boosting overall
household incomes. There is a rise
in both drive and personal ambition,
particularly among millennials and
Generation Y – people born from the
1980s onwards. They want to achieve
more, be it at work or through rising
entrepreneurial ambitions.
While consumers’ list of wants has
been growing and changing, the
supply side of the consumer equation
has been, too.
The rise of mini-markets across the
country means many more people
have access to a greater range of
goods, and for manufacturers, it is
becoming easier to achieve national
distribution. As more people live
within reach of self-service minimarkets, there is a new pressure
to contend with: the agony of
choice. People now have to stand
in front of an aisle or wall of goods
and decide what they want to buy.
This is becoming a bigger issue for
consumers by the day, as the appeal
of Indonesia’s lucrative market attracts
new companies with new brands
and there are more new product
launches. In the food and beverage
category in particular, the explosion
of choice in recent years has been
tremendous. Further, increasing
internet access provides greater
access to a whole new world of
opportunities.
So, consumers want more, and
there are more ways for them to get
it. But they don’t just want more of
the same. With plentiful choice and
heightened demands, here are three
ways brands can help consumers find
what they really, really want.
1. CELEBRATE DIFFERENCE
People want to feel special,
and are drawn to products and
brands they feel are specifically
targeting them. Specialization
can cater for people in different
demographics, people pursuing
different lifestyles, for men and
women, or for consumers with
differing budgets. The power of
specialization is already evident
in rising sales of milk powder
developed specifically for children,
at the expense of standard milk
sales. Likewise, there has been
growth in personal care products
marketed specifically at men,
and there is a rise in price tiering
across categories.
2. EXCEL IN SPECIALIZED NEEDS
Good for everything will become
good for nothing. More needspecialized brands will be the
order of the day as consumers
become more informed and
bored of the old. By focusing
on sensitive teeth, Sensodyne
is making inroads into a mature
category. The SIM card brand 3,
from Hutch, has focused almost
exclusively on its data advantage,
and this single-mindedness has
enabled the brand to outgrow
others in a highly competitive
category.
3. TARGET OCCASIONS
Consumers are already
shopping across a range of
brands and price bands within a
category, using different brands
for different consumption
occasions, particularly in the
food and beverage category.
Occasion-focused marketing is
a way to inspire more frequent
consumption and drive growth.
The macro-economic winds
of change have already caused
significant differences in the behavior
of Indonesian consumers. These
winds of change are only going to get
stronger. Specialization is imperative
in this environment if brands are not
to get left behind.
TNS is one of the largest research agencies worldwide.
We provide actionable insights that help companies
make impactful marketing decisions that drive growth.
www.tnsglobal.com
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61
U R BA N P OPU L AT IONS A R E S W E L L I NG
AS PEOPLE SEEK A BRIGHTER FUTURE
Thought Leadership TRUTH ABOUT PREMIUM
SECTION 02
THOUGHT
LEADERSHIP
THE TRUTH
ABOUT
PREMIUM
PRODUCTS
They’re not as
exclusive as you think
The international consumer goods manufacturers who
strode into Indonesia on the promise of fast-paced
economic growth and a surge in consumer spending are
probably a little worried about the current slowdown. GDP
growth is now at its slowest rate for five years, and it would
be logical to think that for those brands with premium price
tags, the newly affluent consumers whose business they
were counting on may be thinning out.
But consider this; although the pace of economic growth
has slowed, Indonesia’s GDP is still outpacing growth
in developed countries, and remains a leader among
developing markets. The World Bank expects 5.2 percent
growth in Indonesia this year; this compares to a 2.2
percent average for developed markets, and 4.8 percent
for developing countries. In addition, Indonesia’s young,
working-age population is expanding, providing huge scope
for wage growth and consumption.
The outlook, then, is positive for brands providing luxury or
premium products in Indonesia, and we are seeing premium
brands’ sales increase despite the slowdown. But the buyers
of high-end products are not necessarily the people you
might expect.
ADD TO BASKET
In other markets, it’s usually the case that growing a
premium market means convincing people to switch from
mid-range brands to more prestigious or luxurious labels.
What we’re seeing in Indonesia, however, is that growth
in premium sales comes not from consumers switching a
cheaper item for a more expensive one, but rather from the
adding brands to their shopping repertoire, and buying both
cheaper and more expensive items.
Kantar Worldpanel data shows that, in categories such as
detergent, soap, and personal care, where there are budget,
mid-range, and premium options, consumers don’t buy just
one product or the other - they buy several products across
the price range. In fact, only 5 percent of value growth in
premium products is coming from consumers who have
switched from a basic item to a top-end one. In 92 percent
of cases, the growth comes from people who keep buying
their mid-range goods, and buy premium items in addition.
The remainder are newcomers to the category.
Nadya Ardianti
Account Director
Kantar Worldpanel
[email protected]
Why appealing to the masses is
essential to growing the market
for top-end goods
Kantar Worldpanel is the world leader in consumer knowledge
and insights based on continuous consumer panels. Combining
market monitoring, advanced analytics and tailored market research
solutions we deliver High Definition Inspiration™ in fields as diverse
as FMCG, impulse products, fashion, baby, telecommunications and
entertainment, among many others.
MYTH-BUSTING
As brands look to build value and grow sales in this market,
it is important to better understand the buyers of premium
products – and dispel a few myths.
First, most people expect that the buyers of premium
products are more affluent than those who are not. This is
not the case. The practice of ‘repertoire purchasing’ across
price brackets means that people in the middle and at the
lower end of the Socio-Economic Classification are well
represented among buyers of premium products. In fact,
65 percent of buyers of liquid soap – a premium product
compared to bar soap – come from CDE households, and
54 percent of premium detergent buyers are also classified
as CDE. Even premium baby milk powder, which carries
a high price tag of 60 percent above the standard range,
attracts 33 percent of sales from CDE households. Premium
selling, therefore, is about not just one income bracket but
desire, and creating premium occasions.
Secondly, it is assumed that premium products command
high consumer loyalty. This is false in Indonesia today. Our
data shows mass-market goods actually generate stronger
loyalty. Consumers who exclusively buy premium goods are
almost non-existent; usually, premium and mid-range goods
are bought by the same people. Brands should, therefore,
ensure their portfolio architecture reflects the repertoire that
shoppers select from.
Thirdly, it is assumed that promotions are not an appropriate
or effective mechanism for premium goods. Again, this is
a misunderstanding. Kantar Worldpanel research in China
has shown that small packs encourage trial of premium
products for a small outlay, but in their small size also
emphasize their luxury offering – a little indulgence, perhaps
– so improve both sales and brand image.
LOOK BEYOND WALLET SIZE
Sustainable growth in the trend towards premiumization
will come not only from targeting specific consumer
groups, but by encouraging a range of people to purchase
more frequently. As such, some practical advice for
manufacturers:
Be accessible yet aspirational, to appeal to all social
classes
Market smaller pack sizes in an aspirational way, as an
affordable luxury
In communications, emphasize the benefits and quality
of goods to justify the premium pricing
Consider emphasizing other features, such as the health
benefits of a premium brand
Think about the consumer experience – make it feel
premium
Point beyond the product itself and inspire a broader
consumer lifestyle
www.kantarworldpanel.com/id
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65
Thought Leadership FRAGILE TO AGILE
SECTION 02
THOUGHT
LEADERSHIP
FROM
FRAGILE
TO AGILE
Adapting to
new markets
and challenges
What constitutes a truly strong
brand? One could argue it is
a brand that is able to remain
true to its purpose while being
able to adapt to changing
environments and needs.
But all too often, brands have followed a dogmatic
adherence to brand rules to a damaging extent. It’s true
every brand needs sensible working parameters; it needs
do’s and don’ts. A brand without guiding parameters would
be a brand without direction. But there comes a point where
seemingly prudent consistency can become rigidity and
stagnation.
The brand guardians, the very people empowered with the
task of communicating the brand in a relevant, empathetic
way, often view themselves as the arbiters of law and order,
brandishing their well-worn copy of the sacred brand
guidelines. Often they’re seen as no more than brand police.
But doesn’t this slavish adherence to a tight set of rules
smack of insecurity? Why police a brand so stiflingly, when
you can run with it and explore new opportunities? Are
these brands really too fragile to flex with the times, culture,
or evolving consumer needs and desires? It might be time
for them to try being a bit more agile.
This does not mean order should give way to chaos.
However, a strong brand should be able to flex its muscles
and also be flexible. With online brands able to adapt at a
moment’s notice, it’s increasingly critical to keep up. Brands
have to move as fast as the culture that surrounds them – yet
this agility is rarely evident.
Also, in every brand’s constant search for relevance, they
should remember that their customers don’t live in their
world, but that they live in their own. McDonald’s is one
brand that is very aware of this and adapts accordingly.
They are often seen as a ubiquitous monolithic symbol of
U.S. culture, but are actually a choice example of an agile
brand. Known worldwide for its beef burgers, its menu in
India is around 40 percent vegetarian and contains no beef
or pork. They adapted their menu to India’s religious and
cultural norms, while retaining values essential to the brand
experience. That’s because McDonald’s knows that they are
not just selling beef burgers, but an aspirational experience
of simple, easy, enjoyment. McDonald’s, for all its huge
scale, was flexible enough to adapt to local culture through
products that most would have thought were core to the
brand. McDonald’s knows its core is far more emotive than
just its menu.
It is important for brands aspiring to be agile that they are
clear in distinguishing between the products or services
they deliver today, and what they stand for in the long term.
Products can come and go, product lines can be extended,
existing products can be renovated and new products can
be innovated. But with an agile brand platform that helps a
brand stand out and stand for something, the products and
services it offers are merely expressions of a much more
robust core brand soul.
Are customers of Apple merely buying sensual products,
or are they buying into a deeper brand promise? Apple’s
agile brand platform has allowed them to innovate and
diversify their product portfolio whilst delivering a consistent
trademark experience.
And, who would have thought that a 70s upstart music
business would have diversified into financial services,
telecoms, condoms, soft drinks, air travel, space travel and
pretty much anything else it wanted to? Well, Virgin did
precisely that. Knowing that its core appeal lay not in its
products but its disruptive attitude, Virgin was able to use its
agile platform to spread its wings and become one of the
most admired brands across so many sectors.
Brands in developing markets particularly are facing an
interesting challenge. Moving from a product manufacturing
to a brand marketing mindset is a crucial step forward. As
they juggle consistency with agility, defining what they stand
for and building on that will help ensure their future success.
With flexible innovation and renovation, even within its
current products and services, a brand can prevent rigid
fragility. This agility doesn’t come without its risks, and failure
has to be an option; without the risk of failure, it’s unlikely
that groundbreaking innovation will occur. But one thing is
for sure: agility drives innovation, and standing still is a sure
way of moving backwards in an ever-changing world.
Thomas Sutton
Technical Advisor
Landor
[email protected]
Landor creates some of the world’s strongest and most
agile brands. As new audiences and new technology
generate new demands the pace of change is accelerating
every day. Agile brands seize these opportunities to
sharpen their strategies and transform their markets.
Landor helps brands stand out and stand for something—
while never standing still.
www.landor.com
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67
Thought Leadership E-COMMERCE
SECTION 02
THOUGHT
LEADERSHIP
WIN WITH
E-COMMERCE
Five steps towards
future-proofing
business
It was sobering news to hear the recent prediction of retiring Cisco
CEO John Chambers, that more than a third of businesses will not
see out the next decade. The only survivors, he said, would be those
that could transform themselves into digital, technological versions
of their current selves, and many of those who tried, he predicted,
would fail in the attempt.
Indonesia’s Communications and
Information Ministry predicts the value of
e-commerce transactions in the country
will hit US$24 billion in 2016 - twice
the value seen in 2014. The signs are
clear; we must adapt to digital change,
whatever industry we are in.
Already, the traditional business models
of travel, finance, motoring, baby care,
music, entertainment, retail and fashion
are being challenged and transformed by
new e-commerce-driven models.
In Indonesia, you can use the Go-Jek
delivery app or motorcycle taxi service
GrabBike.com when you want to avoid
the Jakarta traffic jams. You can buy
furniture from Toko online, without
battling the crowds of Jogja.
E-commerce in Indonesia is still
nascent by world standards, due to
the complexity of delivery across the
archipelago, and the low uptake of digital
payment methods. But while the overall
rate of e-commerce is still low at just
0.8 percent of retail sales, it is forecast
to be heading for 8 percent of retail
sales within 10 years. That rate of growth
would make Indonesia’s online shopping
sector the largest in Southeast Asia.
Maneesheel Gautam
Brands across business sectors must
start preparing for a future in which
success – or survival – depends on
success in e-commerce, laying strong
foundations now in five key areas.
Leader, Invention
MindShare
[email protected]
Mindshare is a global media agency network dedicated to forging
competitive marketing advantage for businesses and their brands
based on the values of speed, teamwork and provocation.
WIN WITH TALENT
The chemistry that is needed in a team developing e-commerce
requires a range of skills and perspectives, from traditional retail
sales, digital strategy and beyond. At the heart must be a decisionmaker who can build a cross-disciplinary team and draw out the
best skills and ideas from each member.
WIN WITH ASSETS
Fulfilling a brand’s e-commerce starts with a great web site, but
that is only the beginning, particularly in a market like Indonesia,
where many people’s first experience of the internet is not on a
computer but a mobile phone. A brand’s digital assets have to
be discoverable, shareable and shoppable – and they need to be
adapted to all kinds of digital devices, especially mobile screens.
A consumer’s digital experience of a brand begins before they
even see the products; the digital interface needs to support their
device, be easy to navigate, be optimized for different connection
speeds, allow personalization of content and offer easy payment.
WIN WITH INSIGHT
The TNS Connected Life study in 2014 showed that most millennial
consumers, those now aged roughly between 18 and 34, research
purchases and buy online. Younger generations are even more
adept at managing and manipulating the digital world. We need to
move away from static models of measurement towards dynamic
ones, combining offline segmentation and insights with online
audience information and behavioral data. People’s lives span the
digital divide; insight generation and e-commerce strategies need
to do the same.
WIN THROUGH PARTNERSHIP
In the complex world of constant innovation, it is not easy to
achieve greatness alone. We need to identify our strengths and
draw strength from our differences, building partnerships with
other businesses that can help with innovation, insight, logistics,
technology, media, and data management.
WIN WITH SPEED
‘Launch fast, learn fast’ should be the mantra in e-commerce.
Constant experimentation and adaptation at speed is essential. This
approach requires an important change in mindset; we need to
be willing to celebrate failure and learn from it. We need to reward
those with a restless desire to innovate and improve – and accept
the cost of failure as a step towards success. Experimentation is the
spirit that has led pioneers in small garages and university dorms
around the world to create some of today’s most valuable brands.
www.mindshareworld.com
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T H I S I S A COU N T RY ON T H E CUSP OF T R A NSFOR M AT ION
CA R OW NER SHIP IS A MONG THE LOW EST IN THE WOR LD
SECTION
THE INDONESIA
TOP
Indonesia Top 50 THE RANKING
SECTION 03
BRANDZ™ TOP 50 MOST VALUABLE
INDONESIAN BRANDS 2015
BrandZ™ Top 50 Most Valuable
Brand
Brand
Brand
Value
Contribution
(US$ Mil.)
1
9,918
2
8,285
3
6,373
4
6,153
5
5,882
6
2,145
7
2,042
8
1,939
9
1,767
4
Banks
4
Banks
4
Telecom Providers
3
Banks
4
Tobacco
4
Retail
3
Banks
4
Tobacco
5
Tobacco
Dji Sam Soe
10
1,669
11
1,640
12
1,625
13
74
3
Tobacco
3
Tobacco
4
Gudang Garam
Tobacco
4
1,488
Personal Care
Brand
Indonesian Brands 2015
Brand
Brand
Value
Contribution
(US$ Mil.)
14
1,039
15
1,032
16
1,012
17
949
18
659
19
659
20
484
21
483
22
477
23
461
24
455
25
402
26
398
5
Food and Dairy
3
Telecom Providers
3
Telecom Providers
5
Home Care
5
Personal Care
4
Soft Drinks
4
Real Estate
2
Real Estate
3
Real Estate
2
Retail
4
Real Estate
5
Soft Drinks
Brand
Brand
Brand
Value
Contribution
(US$ Mil.)
27
354
28
350
29
331
30
323
31
285
32
279
33
275
34
272
35
267
36
251
37
249
38
216
5
Airlines
3
Real Estate
1
Real Estate
2
Retail
3
Personal Care
4
Personal Care
3
Personal Care
2
Tobacco
4
Real Estate
2
Real Estate
3
Entertainment
2
Personal Care
Brand
Brand
Brand
Value
Contribution
(US$ Mil.)
39
192
40
158
41
157
42
154
43
144
44
142
45
141
46
132
47
127
48
117
49
113
50
110
1
Banks
4
Food and Dairy
1
Banks
3
Food and Dairy
1
Banks
2
Personal Care
2
Banks
1
Banks
1
Banks
1
Banks
1
Banks
5
Food and Dairy
1
Retail
Source: BrandZ™ / Millward Brown
Brand contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 being highest.
75
MOBILE IS ALMOST UBIQUITOUS,
EVEN IN THE MOST REMOTE COMMUNITIES
The Indonesia Top 50 OUR INSIGHTS
SECTION 03
A SIGN OF
THINGS
TO COME
Top 50 ranking puts
Indonesian brands
on the global stage
Mark Chamberlain
Managing Director
Millward Brown
[email protected]
As we consider the rankings
in this list of BrandZ™
Top 50 Most Valuable
Indonesian Brands, it is
worth acknowledging that
Indonesia is only the fourth
market in the world to get
a ranking of this kind that
focuses on a single country.
This signifies the importance
of Indonesia to WPP, its
operating companies and to
the companies with which
we work.
Indonesia finds itself in exciting
times. However you assess the
brand landscape in this diverse
archipelago, it is clear that brands
have dramatically increased in
importance and will continue to do
so. Let’s assess the facts:
• The number of people who
recommend brands to their
family and friends has nearly
78
doubled compared to three years
ago, BrandZ™ data shows.
• Consumers will become more
savvy as the options available
to them increase, making brand
loyalty more challenging but more
important. Kantar Worldpanel has
found that in 2014 there were 600
new brands and 4,400 new SKUs
in Indonesia – in FMCG categories
alone.
• Brands will increase in value.
When, five years ago, WPP
launched the China BrandZ™ Top
50 Brands, they were collectively
worth US$279 billion. This year,
the China Top 50 is worth US
$444 billion.
• There will be some big winners
and some big losers in the
years ahead. Five of the 10 most
valuable brands in the BrandZ™
Global Top 100 brands a decade
ago no longer make the Top 10.
For the 50 brands in this
inaugural Indonesia ranking, this
acknowledgement is the direct
outcome of years of dedication to
business development and brand
building. All of these brands and the
teams of people who have worked
on them should be very proud. The
BrandZ™ Top 50 is not just one
more ranking in an already crowded
market. It shows these brands
have won the hearts and minds
of the people who really count –
consumers – and they have built
those relationships into commercial
successes.
The total value of the Indonesia Top
50 brands this year stands at US$64.6
billion. If we apply the growth rate
we have seen in the Global Top 100
to these Indonesian brands, then the
Top 50 Indonesian brands could be
worth US$105 billion by 2020. In fact,
the most valuable Indonesian brand,
BCA, is not far from entering the
Global Top 100. We look forward to
the journey ahead.
Tough market conditions
might be affecting
household budgets for
everyday items, but they
are not slowing the march
of the expanding Indonesian
middle classes, who are continuing
to spend regardless. In what was once
was dismissed as ‘only a developing
market’, with assumptions made about
levels of consumer sophistication being
behind those in wealthier countries,
there is a strong appetite for luxury, and
growing levels of connoisseurship. The
Indonesian middle classes are buying
luxury items at a rate that has turned
the heads of Gucci, Cartier, Hermes
and Louis Vuitton, to name just a few
of the brands to have opened flagship
stores in Jakarta. Designer apparel,
luxury accessories, and premium beauty
products are helping Indonesians
project a more global image.
THE ART OF
UNDERSTANDING
DIVERSITY
Lioni Halim
Associate Account Director
Millward Brown
[email protected]
This is only the beginning. Projections
from the Wolfensohn Center for
Development at The Brookings Institution
show that total spend by Indonesia’s
middle classes in 2020 will top US$1,000
billion, just behind that of
middle-class shoppers in
Russia and France, and
A TOUCH OF
making Indonesia the
CLASS – AFFLUENT
eighth-biggest middle-class
consumer market. By 2030,
SHOPPERS SPEND
the wealthy shoppers of
BIG ON LUXURY
Indonesia will be in fourth
place in the world, collectively
spending almost $2,500
Anton Reyniers
billion, more than affluent Japanese,
Group Strategy Director
Russians and Germans, and just
Ogilvy
behind the USA. The division between
[email protected]
Indonesia’s haves and have-nots will
endure for some time, but the number of
people with wealth is on the rise, and that
means surging demand for the high-end
brands that satisfy consumer desire to be
part of the wider world.
The island of Java contributes
about 60 percent of Indonesia’s
economy, and tends to be the
focus – at least initially – of brands
entering this market. However,
with a population as large as
Indonesia’s brands risk missing a
huge market if they overlook the
people who make up the other 40
percent, who live dotted across the
country’s multitude of islands. These
consumers’ purchasing power is
on the rise, and their attitudes and
preferences need to be understood.
These perspectives are as varied as
the diverse landscapes and cultures
in which Indonesian consumers
live, and have a significant bearing
on attitudes towards brands and
advertising. A recent Millward
Brown study in 12 cities across
the archipelago proved that big
differences
exist in people’s
receptiveness to
advertising messages,
even between regions
that are, geographically, quite close.
We commonly consider Jakarta
and Bodetabek as one region,
Jabodetabek, or greater Jakarta.
But this study found that even
people living in these two areas have
significantly different responses to
advertising.
Embracing and understanding the
diversity of consumers in this market
is no longer an impossible – or
prohibitively costly – task. Mobile
research makes it easier to conduct
truly national studies, to highlight
differences and understand what
unites and resonates with the greatest
number of consumers.
79
Top 50 BRAND PROFILES
SECTION 03
COMPANY Bank Central Asia Tbk PT
BRAND VALUE US$ 9,918 million
HEADQUARTERS Jakarta
INDUSTRY Banks
YEAR FORMED 1957
Bank with vast branch network
and focus on card innovation
Mobile network expanding
into payment services
BCA (Bank Central Asia) has built a reputation for being one of the
most accessible banks in Indonesia with more than 1,000 branches
nationwide. The bank’s communications slogan is “BCA Senantiasa
di Sisi Anda”, or “BCA, Always by Your Side”, and the bank is indeed
one of the most widely used consumer banks in the country. With
a vast network of ATMs, and now, with e-banking, it is even more
pervasive, and is Indonesia’s most valuable brand in 2015.
Telkomsel is the country’s leading mobile phone network
provider, with 140 million subscribers and the widest network
availability of any carrier in Indonesia, at 95 percent coverage.
The brand, a subsidiary of Telkom Indonesia, marked its 20th
anniversary in May 2015. It was the first service provider to
reach some of the most isolated parts of the country, and most
recently, launched the first commercial 4G service, Telkomsel
4G LTE, which has attracted more than 300,000 subscribers
in its first five months of service. Telkomsel this year opened
a customer service center in Mecca, Saudi Arabia, to support
Indonesian pilgrims on the Hajj. Telkomsel is, like telecom
providers in other markets, broadening its offering beyond SIM
cards; it recently launched a mobile payment system called
T-Cash.
Innovations include the launch of Flazz, the country’s first pre-paid
payment card, which is widely accepted by retailers and some
public transport providers. BCA offers Flazz users and credit card
users attractive promotions to reward existing customers and attract
new clients, and its private label credit card, BCA Card, is now
accepted in Singapore.
The bank’s founder, Sudono Salim, was one of the most high-profile
Chinese-Indonesian businessmen in the country. This heritage
has helped make the bank especially popular among Chinese
consumers. The company has been listed on the Indonesia Stock
Exchange since 2000; it is 47 percent owned by the Hartono family,
owners of the clove cigarette giant Djarum Group. Anthony Salim,
one of the BCA founder’s sons, has a small stake in the company,
and 52.85 percent of the company is owned by other shareholders.
Heritage banking brand with
emphasis on small business
BRI is Indonesia’s oldest commercial bank,
with a focus on providing credit to small and
medium enterprises, particularly in some of
the country’s most remote areas; 75 percent
of the credit it provided in 2013 went to
micro, small, and medium enterprises. BRI
has the widest branch network of any bank
in Indonesia, with more than 10,000 outlets, and works
under the slogan “Melayani Dengan Setulus Hati” – Service
from the Heart. Its proposition is built around its desire to be
the “People’s Bank of Indonesia” and, by focusing on small
and medium businesses, it positions itself as helping build
the economy of the people. It was named Bank of The Year
Indonesia in 2014 by The Banker magazine. Innovations
include BRI Hybrid, a self-service banking product, launched
in 2013, and the electronic payment product BRIZZI, in 2010.
The bank is 57 percent state-owned, with the remaining 43
percent traded publicly since 2003. It has overseas units in
New York, the Cayman Islands, and Hong Kong.
80
COMPANY Telekomunikasi Indonesia Persero Tbk PT
INDUSTRY Telecom Providers
YEAR FORMED 1995
The brand is a strong user of social media and events. Its
Everyday Discoveries campaign in 2015 draws on usergenerated content and social sharing, and its SimPATI Discover
Run, a fun run featuring colored powders and foam, has been
held across eight Indonesian cities.
Telkomsel is the subsidiary of PT Telekomunikasi Indonesia Tbk
(Telkom) which holds a 65 percent stake, and Singtel. Telkom
is listed on the Indonesia Stock Exchange; the majority of its
shares are owned by the Indonesian government, with the
remaining 47 percent owned by the public. Shares in Telkom are
also traded on the New York Stock Exchange, and are publicly
offered without listing in Japan.
Industry newcomer encourages
cashless transactions
COMPANY Bank Rakyat Indonesia Persero Tbk PT
INDUSTRY Banks
YEAR FORMED 1895
Bank Mandiri was formed by the merger of four state-owned
banks during post-crash restructuring of the financial sector in
the late 1990s. Since then it has become one of the country’s
leading financial institutions, with a focus on commercial
banking. It is an enthusiastic proponent of the cashless
society, and is one of the partner banks linked to the e-toll
pass programme on Jakarta’s public transport system. Bank
Mandiri has linked up with mobile phone networks Telkomsel,
XL and Indosat to improve access to financial services and
encourage cashless transactions. Its Mobil Mitra Usaha
(MobilMU) programme is designed to help micro-businesses
open accounts, deposit savings, and apply for loans.
Mandiri works to encourage young entrepreneurs through
business development schemes in universities. It has recently
extended the service to Islamic boarding schools, known
as pesantren. Bank Mandiri was listed on the Indonesia
Stock Exchange in 2003. Its international operations cover
Singapore, Hong Kong, the Cayman Islands, Timor-Leste,
Shanghai and London.
COMPANY Bank Mandiri Persero Tbk PT
INDUSTRY Banks
YEAR FORMED 1998
81
SECTION 03
Quirky image reflects
distinctive cigarette flavor
COMPANY Hanjaya Mandala Sampoerna Tbk PT
INDUSTRY Tobacco
YEAR FORMED 1989
A Mild was the first Indonesian brand of
machine-rolled mild cigarette, known as
SKM Mild, so launched not just as a new
brand, but as a whole new category in
the cigarette market. A Mild has strong
and very distinctive branding compared
to other cigarettes in Indonesia,
playing with the idea of paradox and
strangeness. It appeals mainly to
younger smokers who want to identify
with this desire to stand out; to be a trendsetter rather
than a follower. As in other markets, there are significant
restrictions on the marketing of tobacco products, and
advertising is heavily regulated; advertisements cannot
show the product, the shape of the product or anybody
actually smoking, but spending in this category is very
high. Philip Morris International has taken a stake in
Sampoerna, the makers of A Mild, but Sampoerna A Mild
remains, for the moment at least, unique to Indonesia. PT
HM Sampoerna is listed on the Indonesia Stock Exchange,
and PMI is listed on the New York Stock Exchange.
The brand has a strong social mission, and its CSR work
includes a long-standing partnership with UNICEF, local
charities, and employee associations. Stores collected
IDR500 million in customer donations in 2014 to fund the
construction and restoration of mosques and churches.
Matahari shares were floated in 2013. The public now
owns 65 percent of the company, with Asia Color
Company and PT Multipolar the other major shareholders.
Its turnover is growing rapidly thanks to improved like-forlike sales and the addition of new outlets in the network.
82
BNI (Bank Negara Indonesia) is best known as a provider of
credit and banking services for large government projects
as well as big business and smaller enterprises. Calling itself
the “Pride of the Nation” in its communications, BNI is also
regarded as a leader in Shariah-compliant financial services,
from current accounts and credit cards to investment services,
mortgages and insurance. BNI’s consumer banking arm has
issued credit cards to 1.7 million people, who can use them
with 40,000 merchants.
COMPANY Bank Negara Indonesia Persero Tbk PT
INDUSTRY Banks
YEAR FORMED 1946
BNI works closely with universities to generate new customers,
and has run a series of recent marketing campaigns involving
competitions for children with trips to Disneyland as prizes. It
has also partnered with the national airline, Garuda Indonesia,
on promotions. The bank has won a host of recent industry
awards, particularly for its Islamic banking products. BNI has
offices in London, New York, Singapore, Tokyo, Osaka and
Hong Kong, and a South Korean branch is expected to open
soon. In 1996, BNI became the first state-owned bank to list on
the Indonesia Stock Exchange when 25 percent of its equity
was sold to the public. The bank remains majority state-owned.
Full-flavor cigarette brand
approaches 60th anniversary
Shopping destination of
the growing middle classes
Matahari is a popular chain of department stores, and its
network is expanding rapidly as it caters to the desires
of the burgeoning Indonesian middle class. Stores are
being rolled out across the country featuring adults’ and
children’s clothing, cosmetics, appliances, and accessories
that combine fashion with affordability. Now present in
65 cities, Matahari had 134 stores as at April 2015 and
employs more than 40,000 people. It takes pride in
supporting more than 1,200 Indonesian suppliers.
Emphasis on Shariahcompliant financial services
COMPANY Matahari Department Store Tbk PT
HEADQUARTERS Tangerang
INDUSTRY Retail
YEAR FORMED 1958
Surya is a popular brand of machine-rolled cigarette in the
full-flavor segment of the tobacco market. A low-tar, lownicotine variant called Surya Pro Mild is also produced under
the Surya name. Both are part of the tobacco company
Gudang Garam, which has been producing cigarettes in
Indonesia since 1958, initially by hand and, at that time, often
using dried corn husks as wrappers. Production of machinerolled cigarettes began in 1979, but several hand-rolled
varieties are still in production and those brands remain
popular. The town of Kediri in Eastern Java has housed
the Gudang Garam processing center since the company
began, and is reported to provide about 73 percent of the
town’s income.
Cigarette advertising is highly restricted in Indonesia, but the
tobacco category remains one of the biggest spenders on
advertising in the country. Gudang Garam has been listed
on the Indonesia Stock Exchange since 1990, but it remains
majority-owned by the Wonowidjojo family that founded
the business.
COMPANY Gudang Garam Tbk PT
HEADQUARTERS Kediri
INDUSTRY Tobacco
YEAR FORMED 1958
83
SECTION 03
INDUSTRY Tobacco
YEAR FORMED 1913
Premium kretek cigarette
with regional reach
Budget-priced cigarette appeals
to low-income earners
Dji Sam Soe is a premium brand of
kretek (clove) cigarette that has more
than a century of heritage in Indonesia.
The brand’s name comes from the
Mandarin Chinese words for the
numbers two, three and four; the sum
of these numbers is nine, which in
Chinese culture represents perfection. Dji Sam Soe is
known to have been the favorite brand of late President
Sukarno, the first president of independent Indonesia,
and is exported to several markets in Southeast Asia.
U MILD is a brand of machine-rolled
cigarette produced by Sampoerna,
the tobacco giant behind the
premium A MILD brand. U MILD is the
more affordable of the two, so tends
to appeal to young adult smokers
on lower incomes. U MILD’s slogan
changed in 2015, to “Cowok U MILD Lebih Tahu”, or
“U MILD guys know better”. As in other markets, there
are restrictions on the marketing of tobacco products,
and advertising is heavily regulated, but spend in this
category is significant. In fact, tobacco is one of the
biggest-spending industries on advertising in Indonesia.
Advertisements cannot show the product, the shape
of the product or anybody actually smoking, and TV
advertising is only permitted during the late night and
early morning. Philip Morris International has a majority
stake in Sampoerna, and U MILD is sold in Singapore and
Malaysia as Sampoerna U. PT HM Sampoerna is listed on
the Indonesia Stock Exchange, and PMI is listed on the
New York Stock Exchange.
In the past four years, the brand has launched two new
lines, Magnum Filter, an aspirational but more affordable
brand, and Magnum Blue, which appeals to young
adult smokers. Dji Sam Soe’s slogan in communications
has for two years been “Mahakarya Indonesia”, or
“Indonesian Masterpiece”. The brand is owned in
Indonesia by Hanjaya Mandala Sampoerna, which is
listed on the Indonesia Stock Exchange. The company
is majority owned by Philip Morris International, which is
listed on the New York Stock Exchange.
Heritage brand still strong
despite decline in category
Global brand encourages
smokers to ‘Be Marlboro’
Marlboro is known the world over and is the largestselling cigarette brand in the world. Its image has for
decades been associated with the ‘Marlboro Man’ and his
rugged cowboy image. This image has been at the heart
of brand communications in Indonesia since the late
1950s, though its current advertising – which is highly
restricted because of regulations on the advertising of
tobacco products – carries the slogan “Be Marlboro”.
The brand is owned by Philip Morris International,
which is listed on the New York Stock Exchange, and is
distributed in Indonesia by Hanjaya Mandala Sampoerna,
which is listed on the Indonesia Stock Exchange and is
majority owned by PMI.
84
INDUSTRY Tobacco
YEAR FORMED 2005
INDUSTRY Tobacco
YEAR FORMED 1984
Gudang Garam is a brand of clove
cigarettes known in Indonesia
as kretek. This is a traditional
product and tends to appeal
to older smokers. Hand-rolled
and machine-rolled varieties
are produced, with the more
expensive, hand-rolled product
seen as premium, and the
machine-produced cigarettes
having a more mainstream
audience. Demand for handrolled kretek has been declining in
recent years, but Gudang Garam
Gold hand-rolled cigarettes were
successfully launched in 2014,
with black and gold packaging and
premium positioning. As in most
markets, advertising of tobacco
products is highly restricted, but
television advertising at selected
times of day is still possible in
Indonesia, though exactly what
can be shown is limited. The brand
takes its name from the parent
company, which has a stable of
successful cigarette brands.
Gudang Garam cigarettes are
exported to Malaysia, Brunei,
Japan, Australia, Germany, the
U.S., and the Netherlands. The
parent company is listed on the
Indonesia Stock Exchange but
remains majority-owned by
the Wonowidjojo family, which
founded the business.
GUDANG GARAM
HEADQUARTERS Kediri
INDUSTRY Tobacco
YEAR FORMED 1958
85
SECTION 03
The surge in ownership
of smartphones and
tablets in Indonesia
means consumers
are using several
screens at once. While
this can make it more difficult
to win consumers’ attention, it
also provides brands with new
opportunities to make better,
stronger connections.
Millward Brown AdReaction research
among smartphone and tablet
owners shows that Indonesians
accumulate nine hours of screen
time a day on average – the highest
rate in the world. They spend three
hours a day on a smartphone,
two hours watching TV, 1.9 hours
on a laptop, and 1.8 hours on a
tablet, with many of these hours
overlapping one another. They use
several devices at the same time for
over six hours a day.
When we narrow the focus to look
at times when people use multiple
screens at once, we find that 60
percent are looking at content
unrelated to what they’re watching
on TV; we call this ‘stacking’ content.
The other 40 percent,
however, are doing
what we call ‘meshing’,
THE ART OF
that is looking up or
DISTRACTION – USING
discussing content of
the TV programming or
MULTI-SCREENING TO
advertising that they are
YOUR ADVANTAGE
watching on the bigger
screen. This equates to
over an hour each day
Anggra Tidayoh
spent meshing.
The implication of this for
advertisers is that, rather than
trying to stop people from being
distracted by their second or even
third screens, they should provide
relevant content in formats that suit
different screens, and encourage
consumers to move from one to
the other. Multiple screens can be
used to build and develop a brand
message. For these distracted,
multi-screening consumers, the
best and most effective content
needs to be consistent, connected,
considered, and concise.
Since the beginning of
2015, volume sales of
DELIVERING
FMCG goods have been
declining, although value
AFFORDABILITY WHEN
sales are still growing
BUDGETS ARE TIGHT
thanks to higher prices. The
economy has contracted
due to decreased
Denny Tanjung
government spending and a decline
Group Business Director
in exports, leading consumers into
Kantar Worldpanel
more cautious spending habits,
[email protected]
spending the same amount of
money each time they shop, but
shopping less often and prioritizing
the items on their list. Therefore,
impulse purchases are among the
worst affected, with chocolate,
ready-to-drink beverages, ice-cream,
and biscuits facing a tough time.
In times like this, what is the key to
86
Media and Digital Associate Director
Millward Brown
[email protected]
longevity? Affordable
products are appealing,
but Indonesian consumers
are savvy enough not to just look
for the cheapest prices. Rather, they
seek out a good value product –
and one that provides them with a
great brand experience. The brands
that stand to thrive in this climate
are those that match affordability
with inspiration or experience.
Prochiz is challenging the big cheese
brands with a budget price and very
similar experience, and Big Cola
and Floridina are shaking up the
carbonated soft-drink and readyto-drink categories in a similar way.
Offering smaller pack sizes is another
way of linking value with a great
brand experience when consumer
budgets are constrained.
There is much excitement among
marketers in Indonesia about the
opportunity that such a young
population represents. The truth
is though, that very few
brands have been able to
THE NEW, NEW THING
make a real connection
with the nation’s youth.
– GETTING DOWN
It’s often thought that
young consumers
are more individual
than their parents
and grandparents; moving from
‘we’ to ‘I’ in the way they regard
themselves. To some extent, this
transition – or, more accurately,
this blending of views – is
something that consumers of all
ages are grappling with in modern
Indonesia.
WITH THE COOL KIDS
Aparna Sinha
Technical Advisor
TNS
[email protected]
For young Indonesians, this
tension translates into a desire
to be part of a collective and be
on trend, but at the same time
Many brands can
attribute their
character and
success to the
mantra ‘celebrity
sells’, but in Indonesia,
celebrity endorsement is
losing its value. For a lot of brands
lately, the presence of a star in
communications has served only to
mask the mediocrity of the brand
involved, or the lack of creativity in
the ad.
Here, celebrities are highly
regarded, and fans have access to a
huge range of star-studded content
beyond films and fashion shows.
Celebrities feature as judges on
reality shows, do meet-and-greet
events, tweet their own news and
pictures, and have a huge following
on Facebook and Instagram. When
stars appear in advertisements,
their fans are delighted at yet
another opportunity to see them,
but this delight doesn’t always
they have a yearning
to stand out. Young
people want to be seen
as having the latest, the
coolest, or even the weirdest
brand or product, and to be seen
to be ahead of the curve. This
pursuit of the new keeps them
on their toes and means they are
open to considering new brands;
being ‘in the know’ is a form of
social currency.
Brands that give young people
licence to explore and express
different aspects of themselves
can make an authentic connection
with these new consumers.
Marketers must be mindful,
however, of retaining an air of
exclusivity; once a brand becomes
thought of as ‘too popular’,
those most keen to be seen as
trendsetters may start to lose
interest.
translate into improved sentiment
towards the brand being promoted.
Given that most established brands
in this market are concerned with
improving consideration rather
than raising primary awareness,
it is difficult for celebrities to cut
through and make a real
difference. Therefore, in
WISHING ON A
today’s world of shorter
brand storytelling on TV
STAR – CELEBRITY
and online, the chances of
celebrities being mistakenly
ALLURE LOSING
linked to brands are high,
ITS EFFECTIVENESS
especially when in-demand
stars are endorsing multiple
brands.
Arindam Bhattacharyya
Video bloggers (vloggers) are the
Head of Strategy
new generation of key opinion
MediaCom
[email protected]
leaders, generating millions of
views online. Brands that build
partnerships with the right
vloggers, producing engaging and
shareable content, can now make
as powerful an impact as was
achieved by the celebrity ads of old.
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I N D O N E S I A N S A R E N AV I G AT I N G A PAT H
BE T W E E N R E SPECT FOR T H E I R H E R I TAGE A N D PRO GR E S S
SECTION 03
Celebrities drive string of
new product launches
COMPANY Unilever Indonesia Tbk PT
INDUSTRY Personal Care
YEAR FORMED 1989
Pond’s is the market leader
in women’s facial care in
Indonesia, with a focus on
cleansers and moisturisers.
It offers a large number of
variants for different skin types,
age groups, and budgets, from
mass-market products to more
premium lines. Its ranges are
divided into several sub-brands,
which include the anti-aging
Pond’s Age Miracle and the
mass Pond’s White Beauty. Two
of its newest launches are the
Pond’s Flawless Dewy Rose
whitening gel and Pond’s Age
Miracle Firm & Lift.
The brand has for years been
a large investor in television
advertising, and more recently
has been spending significant
sums in digital as well. Celebrity
brand ambassadors for Pond’s
include singer Maudy, singer
Gita Gutawa, actor Sandra Dewi,
and model Nadya Hutagalung.
In 2014, the brand was a sponsor
of the TV contest Asia’s Next
Top Model, and in 2015 created
significant buzz in Indonesia
by signing famous singer Raisa
Andriana to endorse the brand, a
move it announced with a short
film featuring their new star.
Pond’s is active on Facebook
and Twitter, running quizzes
and competitions and inviting
customers to share experiences
through stories and pictures.
Pond’s is owned by Unilever,
which trades on the Indonesia
Stock Exchange.
While domestic sales volume has been fairly static in the past
year, sales value rose due to higher prices and the success of the
premium range. Noodles are by far the biggest contributor to sales
by the parent company, Indofood CBP Sukses Makmur Tbk PT,
which is listed on the Indonesia Stock Exchange.
90
Mobile network provider XL is the second-largest provider
of SIM cards in Indonesia and recently rebranded under the
slogan Sekarang Bisa, ”Now We Can”, with a new logo and
cross-platform advertising campaign focused on its new 4G
service. Its television commercials and digital storytelling,
#4Goodness, highlight the emotional benefits of having a 4G
phone service, freeing up time to do other things. XL bought
out smaller rival Axis last year, which has also been given a
brand overhaul since then.
COMPANY XL Axiata Tbk PT
YEAR FORMED 1996
XL Axiata made headlines earlier this year when it named Dian
Siswarini its first female CEO. XL is part of Axiata, which owns
Celcom in Malaysia, M1 Singapore and SIM Thailand. XL posted
a first-quarter loss in 2015 despite steady revenue, due to a
weakening rupiah and costs associated with the purchase of
Axis. The company is listed on the Indonesia Stock Exchange,
and is 67 percent owned by Axiata Group and 33 percent
owned by the public.
Phone network in fresh push
for business customers
Noodle brand that takes the
taste of Indonesia to the world
Indomie is an Indonesian household name synonymous with
great-tasting instant noodles in a range of flavors. The brand
regularly launches new flavors, often inspired by well-known local
and international dishes. Indomie’s advertising slogan, “Berbedabeda Satu Selera”, means “One taste in diversity”, and reflects both
the variety of Indonesian tastes and the many variants in the range.
A premium range, Taste of Asia, was launched in 2013, and proved
so popular that in the past year the brand has expanded further
into the premium segment with its Indonesia Culinary Series of
flavors. Indomie is one of Indonesia’s best-known international
brands, distributed across Asia-Pacific, the U.S., Europe, the Middle
East, and Africa; its Indomie Goreng noodles take the taste of
Indonesia to the world.
Mobile network relaunches
with ‘can do’ approach
COMPANY Indofood CBP Sukses Makmur Tbk PT
INDUSTRY Food and Dairy
YEAR FORMED 1972
Indosat is one of Indonesia's
largest telecommunications
networks and services providers,
offering pre-and post-paid
mobile services, fixed line phone
lines and internet. It is priced to
appeal to a wide audience – it is
pitched between the economy
and premium alternatives,
and regularly receives industry
awards for innovation and
customer service. Its mobile
services under the IM3 brand
have strong appeal among
the young, and generate most
of Indosat’s revenue, while
Matrix and Mentari cater to a
smaller number of high-end
customers. In partnership
with Hong Kong’s PCCW, the
company launched its own
Android app store, i-Aplikazone,
in May 2015, offering exclusive
access to a range of apps.
It has launched new phone
and airtime bundles aimed
at business customers, and is
collaborating with Facebook on
the Free Internet for All project
Internet.org, to give wide access
to basic internet services such
as news, education, and health
information. Marketing activity
includes the Indosat Community
Festival, which brings together
people with diverse interests in
zones dedicated to such things
as sports, creativity, gadgets, and
automotive.
The company started out as
a foreign-owned company,
and in 1980 became the first
international company wholly
acquired by the Indonesian
Government. The Indonesian
government retains a stake in
Indosat, but the majority of
shares are now held by Qatari
company Ooredoo, and the
remainder of the company is
owned by the public. Indosat
is listed on the Indonesia Stock
Exchange and the New York
Stock Exchange.
COMPANY Indosat Tbk PT
YEAR FORMED 1967
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SECTION 03
Global laundry brand urges
kids to get dirty and have fun
BRAND VALUE US$ 949 million
INDUSTRY Home Care
YEAR FORMED 1970
Although Rinso maintains its strong position in a highly
competitive market, its main challenge now is to justify
its price premium, given that rival brands that are sold at
a lower price than Rinso have begun to focus on a similar
stain-removal promise.
Promoting oral health
as part of daily routine
Pepsodent is a mainstream,
market-leading oral care brand
offering consumers quality they
can depend on at an affordable
price. The brand is seen as a way
for Indonesian families to take
care of their dental health, and
there is a range of Pepsodent variants targeting specific
dental needs. In its advertising, Pepsodent highlights its
strength in the market with the slogan “The number one
brand, used and trusted by Indonesian dentists”. Every
year Pepsodent advertises around World Oral Health Day
and National Oral Health Month, as part of Unilever’s
commitment to improving dental health around the world.
This year, Pepsodent has been promoting the message
“Brushing day and night”, targeted at primary schoolaged children, and reminding them – and their parents
– to brush regularly. Pepsodent is sometimes known as
Mentadent, Zhong Hua, and Aim in other global markets.
92
Bottled water brand with
strong focus on CSR
Rinso is a premium-priced laundry detergent and
one of biggest sellers in its category in Indonesia.
Known in other markets as Omo and Breeze, Rinso
communications focus on the slogan ”Dirt is Good”, and
show that children develop best when they’re allowed
to get dirty. Rinso is the laundry category’s biggest
advertising spender, and it positions itself as the brand
that can remove dirt and stains in the first wash. In 2014,
Rinso developed branded content to show the fun and
experience children can have when they’re not afraid
of getting dirty; a game show, Zona Main Rinso, ran on
the national TransTV network, featuring kids completing
challenging, fun – and, naturally, dirty – obstacle courses.
Aqua is the market leader in bottled water in Indonesia, and is so iconic that the
name Aqua is often used as a byword for water. It is priced in the middle to higher
end of the category, has upmarket styling in its bottle design, and is a big investor
in advertising, promoting not only the virtues of the product but also Aqua’s
CSR work, which focuses on providing people with access to clean water and
environmental protection. Aqua sets out to inspire people to give their best, be
healthy and succeed in life.
COMPANY Danone SA
INDUSTRY Soft Drinks
YEAR FORMED 1974
Campaigns in the past year include a competition to make children’s dreams
come true with tickets to the football World Cup in Brazil, and the Aqua Ramadan
2-4-2 campaign, urging people to drink at different times of the day during the
Muslim fasting month. The #AdaAQUA campaign, meanwhile, encouraged
people to drink more frequently when on the go, linking good hydration with
good focus. The campaign ran on TV, in-store, outdoor and on digital media,
and created lots of buzz with its humorous messages about the dangers of losing
focus – one of which confused the well-known singer Sandhy Sandoro with the
comedian Narji. Aqua has been owned by Danone since 1998. Danone shares
are traded on the NYSE Euronext Paris and on the Swiss Stock exchange.
Developer with regional reach and
vision of entrepreneurial Indonesia
YEAR FORMED 1951
Ciputra Development was one of the
first companies in Indonesia to build
large-scale housing projects, and
is behind new town developments
in cities across the country, with
CitraLand projects in Surabaya,
Banjarmasin, Samarinda, Makassar,
Jambi, Pekanbaru, and Kendari. The
premium pricing and luxury lifestyles
offered by Ciputra Developments
mean they appeal to higher-income
earners and have exclusivity.
The company was founded by the
architect Ciputra, now a billionaire
philanthropist whose vision of an
Indonesia fuelled by entrepreneurs
is behind huge education projects
around the country and for Indonesian
migrant workers abroad. The
Ciputra Group mantra is: “Creating
world entrepreneurs”. PT Ciputra
Development Tbk was named among
the Top 50 Best Companies of 2014 by
Forbes Magazine Indonesia. PT Ciputra
Development Tbk has expanded into
China, and other Ciputra companies
in the group are operating across the
region. Ciputra Hanoi International
City is the first large-scale urban
development in Hanoi. In Cambodia,
Ciputra Group has built the Grand
Phnom Penh International City, which
incorporates housing, a commercial
complex, schools, a hospital and an
international-standard 18 hole golf
course.
COMPANY Ciputra Development Tbk PT
INDUSTRY Real Estate
YEAR FORMED 1990
93
SECTION 03
Property developer with portfolio
spanning residential, retail and golf
Nation’s biggest hypermarket
chain undergoes rapid expansion
Sinar Mas Land is one of the largest and most diversified property
developers in Indonesia, with more than 40 years' experience working
on city projects, residential, commercial, retail, hotels and golf
courses. Under its slogan “Building for a Better Future” it develops new
residential and retail concepts, including Tourism City (Kota Wisata), a
cluster housing development in Jakarta, and wholesale-focused Strata
Malls and Trade Centers, mainly in the capital.
COMPANY Sinar Mas Land Ltd
YEAR FORMED 1972
The company received four awards at the Asia Pacific Property Awards
2015, taking best in category for Residential Development, Retail
Development, Development Marketing and Website Development.
The parent company, based in Singapore, has operations in China,
Malaysia, Singapore and the United Kingdom, investing in commercial
buildings, hotels and resorts, property development and leasing. It
recently acquired Warwick House in central London for £57.3 million.
It is listed on the Singapore Exchange and has two listed subsidiaries,
PT. Bumi Serpong Damai, Tbk and PT. Duta Pertiwi, Tbk.
‘Superblock’ developer
offers luxury living to
high-end consumers
Township developer with
hospitality and leisure projects
Driven by its corporate motto, “Wonderful Life – Wonderful
World”, Summarecon is a property player specializing in townships
that integrate commercial space with residential property and
community facilities. Working across Indonesia, with a focus on
the regions of Kelapa Gading, Serpong, and Bekasi, Summarecon
has expertise in urban planning, construction, sustainable design
technology, and neighborhood management. The company also
runs several leisure and hospitality developments; the Movenpick
Resort and Spa in Bali is due to open in 2016.
Summarecon was founded in 1975 by Soetjipto Nagaria, who
is now one of the country’s most prominent businessmen and
philanthropists. Summarecon has won a host of industry awards
in recent years, including 2014 Highly Commended Residential
Development Indonesia at the Asia-Pacific Property Awards, for
Scientia Garden at Summarecon Serpong. The brand has a strong
public presence at events that promote Indonesian creativity, and
this year sponsored the Jakarta Fashion & Food Festival for the 12th
year. Summarecon is listed on the Indonesia Stock Exchange.
94
COMPANY Matahari Putra Prima Tbk PT
INDUSTRY Retail
YEAR FORMED 2004
Hypermart is the flagship retail brand of Matahari Putra Prima,
contributing more than 90 percent of the group’s revenues. It has
the largest footprint of any hypermarket brand in Indonesia, with
107 stores across 29 provinces and 67 cities. The chain is expanding
– in 2014 it opened eight new stores – and it is developing online,
through its own web store and participation in a new online platform,
mataharimall.com. Hypermart offers customers a broad assortment
of consumer goods and a modern shopping atmosphere. The
first of a new generation of Hypermart stores, called Hypermart
G7, opened in 2014 in Tangerang, emphasizing value, range and
convenience – plus the modern shopping experience, with LED
lighting and eco-friendly coolers for fresh food, a new color scheme
and improved signage. The brand’s loyalty card scheme, Hicard, has
3.5 million members, who are eligible for promotions and discounts in
Hypermart stores and with partner organisations such as bookstores
and restaurants. Parent company Matahari Putra Prima has been
listed on the Indonesia Stock Exchange since 1992 and also owns the
smaller, high-end Foodmart brand and Boston Health & Beauty stores.
COMPANY Summarecon Agung Tbk PT
YEAR FORMED 1975
Pakuwon Jati is the pioneer of the superblock concept in Indonesia,
a large-scale integrated mixed-use development of retail shopping
malls, offices, condominiums, and hotels. The company is based in
Surabaya, was founded in 1982, and its developments tend to be in
Surabaya and Jakarta. Its most prestigious properties include Gandaria
City in South Jakarta, a huge "one-stop lifestyle hub" featuring a
shopping mall, two towers of executive apartments, an office tower,
and a five-star hotel. Pakuwon’s target audience is the upper middle
class and high-income earners seeking a luxury lifestyle in prime
locations.
The company is growing, with plans to expand the Kota Kasablanka
superblock, which opened in 2012, to add apartments and
office towers, and it is developing plans for a new property in TB
Simatupang, South Jakarta. It has also been acquiring existing
properties for management, including retail malls in Surabaya and
Jakarta, and the Somerset Berlian apartments in the capital. Pakuwon
Jati has been listed on the Indonesia Stock Exchange since 1989.
COMPANY Pakuwon Jati Tbk PT
HEADQUARTERS Surabaya
YEAR FORMED 1982
95
SECTION 03
THE ROLE OF
CULTURE IN BUILDING
INDONESIAN BRANDS
Ed Thesiger
CEO
GroupM
[email protected]
Indonesians are
naturally open-minded
and trusting, certainly
in comparison to Western
consumers, and are therefore
highly receptive to brand
messaging. They have a strong
belief in the collective good,
and their desire for togetherness
translates into a willingness to
share information. Therefore,
Indonesian
consumers look
to advertising for
information about
brands, which makes
the product truth – how
it’s made, its core features and
benefits – a valuable component
of effective advertising. But
focusing solely on product
attributes can lead to advertising
that’s generic and uninspiring,
reducing a brand's ability to catch
the audience’s attention and build
positive brand memories.
The key to success? Build a
resonant, human story around
the product truth that brings to
life not only what the brand offers
people, but also what this means
for them. Milo is a strong example
of this, becoming a market
leader in chocolate drinks with
96
Understanding how a
particular society thinks
and behaves is vital
to creating successful
brand communications.
in today’s highly
connected digital
world, it comes as no
surprise that Indonesia
is at the very forefront of
social media usage.
Only those brands which truly
understand how to leverage
Indonesia’s cultural traits – from
inhabitants’ traditional values to
their use of new media - and can
translate them into engaging,
relevant communications
programmes, will be able to
achieve strong, sustainable
growth in Indonesia.
communications that celebrate
the victories and successes
enabled by the product’s energy
claims. This platform
transcends channels,
translating easily from Milo’s
annual sponsored 10km run,
to their TV commercials
and Facebook activity; all
touchpoints showcase the
sporting success achieved
with Milo energy.
Telling an emotionally compelling
brand story that’s rooted in a
product truth helps brands to
build a meaningful connection
with consumers that sets them
apart from the competition.
In a market where meaningful
difference is increasingly
important for decision-making,
this can be a great way to
accelerate brand-led growth.
THE BEST ADS
SHOWCASE HUMAN
OUTCOMES AS WELL
AS PRODUCT TRUTHS
Emma Mussell
Account Director
Millward Brown
[email protected]
A global study of Muslim consumers by Ogilvy
Noor has identified two main groups of
people: traditionalists, who are strongly
anchored in the traditional teachings and
practices of Islam, and futurists, the mostly
young Muslims who feel that faith helps them live
better modern lives and assert their individuality.
The more digitally savvy futurists are reflective of the
predominantly young and Muslim Indonesian population.
Aspiring to be part of a bigger world, they embrace the change
that comes with progress and digital innovation, but their lives
are balanced by a wish to continue their obligations as defined
by faith, tradition and society.
BEYOND BELIEF –
THE ROLE OF FAITH IN
MODERN INDONESIA
Ruby Sudoyo
Group Planning Director
Ogilvy & Mather
[email protected]
These young Indonesians are open to brands that are authentic,
that have thought beyond superficial stereotypes and
understand the challenges of being a Muslim in modern times.
Lasting loyalty to a single consumer goods
brand is rarely seen in Indonesia. Consumers
DIVIDED LOYALTIES
are loyal, but not in quite the same way as we
see in other markets. We have identified four types
– THE COMPLEXITY
of loyalty behavior through analysis of Kantar
OF WINNING
Worldpanel shopping data. Those consumers we
call ‘shifting loyal’ move between two brands in
REPEAT PURCHASE
a category and have loyalties to them both. ‘Split
loyal’ shoppers choose between a small repertoire
of brands they feel a bond with, and ‘switchers’ show loyalty
Delia Nugraheni
to the brands offering the best deals at the times they shop
Account Manager
– they aren’t really loyal at all. ‘Exclusive loyal’ consumers
Kantar Worldpanel
[email protected]
are those who stick only with their chosen brand, and in
Indonesia and neighboring Malaysia, we see very few of
these people. Most consumers are in the ‘shifting’ or ‘split’
loyalty categories.
Divided allegiances are the reality of loyalty in this market.
Brands need to get themselves on that mental shortlist of
preferred brands that consumers have when they shop,
and must acknowledge that even apparently loyal fans are
susceptible to last-minute switches when a competitor’s
deal is sufficiently attractive.
97
CONSU M E R S ’ R E L AT IONSH I P W I T H BR A N DS I S CH A NGI NG
EMOTION HELPS CONNECT PEOPLE WITH PRODUCTS AND SERVICES
SECTION 03
New formulations and flavors
keep traditional tea brand fresh
INDUSTRY Soft Drinks
YEAR FORMED 1973
National airline takes
Indonesia to the world –
and the world to Indonesia
SariWangi is the biggest-selling brand of black tea in
Indonesia, with a strong local heritage, and is now part
of the Unilever portfolio. It is widely affordable, cheaper
than many of its competitors, and its communications
focus on family togetherness and sharing. In 2014,
SariWangi launched a new tea formulation using highquality tea leaves with a great taste and aroma. In the
past year, SariWangi communications have focused
on a letter-writing competition, encouraging people to
persuade family members to share their feelings through
letters.
Indonesian tastes in tea vary significantly by region. In
Sumatra, for instance, there’s a strong preference for
vanilla tea, while Javanese consumers tend to prefer
jasmine tea. Several SariWangi variants have been
launched to cater to these diverse tastes and make
the brand more competitive. The range now includes
SariMurni vanilla tea and SariMelati (jasmine tea).
Sariwangi was bought by Unilever in 1989.
COMPANY Garuda Indonesia Persero Tbk PT
INDUSTRY Airlines
YEAR FORMED 1949
Garuda Indonesia is the country’s national airline, a premium, fullservice carrier serving more than 60 domestic and international
destinations, with approximately 500 daily flights and a fleet of
around 170 aircraft. It was named The World’s Best Regional Airline by
Skytrax in 2012. Garuda joined the SkyTeam group of airlines in 2014,
connecting Indonesia with more than 1,000 destinations worldwide,
and signaling its intent to become a major global airline. The brand
promises to deliver the “Garuda Indonesia Experience” across all five
senses, and promotes Indonesian culture and hospitality in its role
as flag carrier. Aircraft interiors feature Indonesian materials, scents
and decor, and traditional food and drinks are served on board. Its
premium service includes Wi-Fi connectivity in First Class. Garuda is
one of the best-known Indonesian brands abroad, thanks in part to its
sponsorship of Liverpool Football Club, and the gradual expansion of
the network. It signed its most recent codeshare deal with Delta Air
Lines in 2014, the year it also launched direct flights to Amsterdam.
Garuda Indonesia began as a state-owned company and is still
majority government-owned, but since 2013, employees and
international investors have held a small stake, with domestic
investors holding the remaining 35.6 percent of shares, which are
traded on the Indonesia Stock Exchange. Garuda launched a lowcost domestic carrier, Citilink, in 2008.
Mini-mart chain innovates
with online push
The Alfa brand covers Alfamart, a chain
of more than 9,800 mini supermarkets
across 17 Indonesian provinces. It also
covers Alfamidi, which stands apart
from other mini-marts by stocking
fresh and frozen food in addition
to store-cupboard staples, and Alfa
Express – smaller-format stores with a focus on range, value and
convenience. Alfa has a majority stake in the Indonesian operations
of Lawson, the convenience store chain. The company’s origins were
in a trading and distribution business launched by Djoko Susanto
and family in 1989, and it moved into retailing a decade later. The
business started its rapid growth phase in 2002, when it acquired 141
Alfa Minimart stores and rebranded as Alfamart.
In 2012 the brand launched AlfaOnline, becoming the first minimarket in Indonesia offering online shopping, and Alfamart has a
partnership with Jakarta-based regional airline Lion Air, allowing
passengers to book flights in Alfamart stores. In 2015, Alfamart started
to realise its international ambitions, opening 30 pilot stores in the
Philippines through a joint venture with SM Investments Corp.
100
Developer focuses on highend projects linking housing,
shopping and office space
COMPANY Sumber Alfaria Trijaya Tbk PT
INDUSTRY Retail
YEAR FORMED 1989
Pondok Indah Group is an upscale real estate developer with a focus on
shopping malls, residential developments, offices and hotels. Its main assets are
Pondok Indah Mall 1 and Mall 2, in the affluent Pondok Indah area of southern
Jakarta. The two main mall towers are connected by an outdoor walkway.
The brand is also known for the Street Gallery extension to the PIM complex,
Pondok Indah Office Tower, Pondok Indah Golf Apartments, and Pondok
Indah Office Park. The Pondok Indah area has been gradually developed
since the early 1970s and is now a very upmarket residential area. The brand
is also behind the Puri Indah development in West Jakarta, which combines
a business center with residential property. The brand’s newest office tower
project, Puri Indah Financial Tower, is due to open in 2016 and has confirmed
several major finance brands – including CIMB Niaga – as tenants. Parent
company Metropolitan Kentjana is listed on the Indonesia Stock Exchange.
COMPANY Metropolitan Kentjana Tbk PT
YEAR FORMED 1972
101
SECTION 03
Haircare brand urges pride
in the natural look through
high-profile sponsorship
Developer of major
landmark projects expanding
its regional footprint
COMPANY Lippo Karawaci Tbk PT
YEAR FORMED 1990
Lippo Karawaci is one of the largest property companies in Indonesia
and is known for some of the country’s biggest and most wellknown projects, including Lippo Village, Lippo Cikarang and Tanjung
Bunga. Its projects tend to target higher income earners, and are
priced at a premium compared to more mass-market developments.
The company is part of Lippo Group, which operates Indonesia’s
premier private hospital group, Siloam Hospitals, and is also a strong
player across a range of other industries, including hospitality, media,
finance, education and retail.
Through Lippo Homes, Lippo Karawaci has recently invested around
IDR 1.3 trillion in developing a new, high-profile mixed residential and
commercial project in Manado, in North Sulawesi province, called
Holland Village, which launched in June 2015. Lippo Karawaci has
been listed on the Indonesia Stock Exchange since 1989, and the
Lippo Group has properties in China and Singapore.
YEAR FORMED 1952
Sunsilk is a global shampoo brand, but it has such a long
heritage in Indonesia and such a locally relevant tone to
its communications that it is widely regarded as a favorite
local brand. It is Unilever’s largest shampoo brand in this
market, with Pantene its main competitor. Sunsilk seeks to
inspire local women to take pride in the natural beauty of
their lustrous black hair, urging them to see their hair as a
sign of their Indonesian identity. The “Sunsilk Shine with
Pride” campaign of 2013-14 involved significant above-theline spending, with creative content focused on the beauty
of black hair. Many of these ads were fronted by brand
ambassador Raisa, a popular singer and former winner of
television talent programme Indonesian Idol, which was also
sponsored by Sunsilk. More recent communications have
emphasised Sunsilk’s international credentials and links with
global hair specialists and advisors, including the Londonbased hair stylist Thomas Taw. Unilever Indonesia is listed on
the Indonesia Stock Exchange.
DIY chain ventures into toys as it
seeks role as family destination
Natural skincare brand goes
digital with online advice center
Ace Hardware is a home improvement and lifestyle retailer that has
been expanding rapidly in Indonesia, opening its 114th store in the
country in May 2015, 19 years after its first store opened here. The
brand seeks to be “The helpful place”, and focuses on the sale of
hardware to the middle classes and more affluent consumers. Ace
in Indonesia operates on a franchise basis; the brand is originally
from Chicago, and there are close to 5,000 stores in more than 60
countries. Ace’s flagship Indonesian store in Tangerang is the largest
Ace store in the world, with a footprint of 15,000 square metres. In
2010, Ace began opening toy stores, called Toys Kingdom, usually
in locations adjacent to Ace Hardware, with the aim of creating a
family shopping destination. By the end of 2014, it had built up a
network of 24 toy stores across Sumatra, Java, Bali and Sulawesi.
Citra is a long-standing brand in the Indonesian market, offering
cleansers, moisturisers and other face, hand, and body products.
Communications tend to focus on Citra’s natural ingredients, such as
orchid and Japanese rice, and on helping women achieve fairer skin
tones. The brand is inexpensive, so tends to appeal to lower-income
earners. Citra uses a lot of below-the-line marketing, particularly
digital, and recent activities include the “Citra Berani Natural Selfie
Competition”. This year, the brand has invested heavily in digital
advertising to promote its online advice platform Rumah Cantik Citra,
a center where consumers can pick up tips and tricks on skincare, and
where the attributes of different Citra products are explained. New
product innovations in the past year include the launch of moisturiser
variants containing pink orchid and wakame seaweed. Citra is owned
by Unilever Indonesia.
Ace Hardware Indonesia is the franchise holder for the brand in
Indonesia. An Initial Public Offering of 30 percent of shares in the
company was held in 2007, with more shares released in 2012.
They are traded on the Indonesia Stock Exchange.
102
COMPANY Ace Hardware Indonesia Tbk PT
INDUSTRY Retail
YEAR FORMED 1995
YEAR FORMED 1984
103
SECTION 03
YEAR FORMED 1948
Focus on germ-killing takes
brand beyond traditional
soap into new products
Real estate developer
focuses on superblocks
for Jakarta and beyond
Lifebuoy offers affordable health, hygiene, and protection
against germs, with a range of soap and other cleansing
products for the whole family. Its products aren’t the cheapest
on the shelf, but are seen as accessible, an important factor
given that the brand’s communications in Indonesia and
around the region focus on the importance of hand-washing
in promoting good health.
Agung Podomoro is a real estate developer, owner,
and manager working across retail, commercial, and
residential property. The majority of their projects in the
past decade have catered to the middle classes, with
projects ranging from low-cost apartments to high-end
developments in South Jakarta, as well as shopping malls,
hotels, and office blocks. The brand is best known for its
projects Podomoro City, in West Jakarta, Kuningan City in
South Jakarta, and Senayan City in South Jakarta. These
are all integrated superblocks comprising a shopping
complex, office space and apartment towers.
Lifebuoy has been running a global public education campaign
to encourage hand-washing, one of the largest of its kind in the
world. While the distinctive red bar of Lifebuoy soap remains at
the heart of the range, there are other variants, including Color
Changing soap aimed at children, and the more premium Clini
Shield. Lifebuoy has also moved beyond soap with a shampoo
product. The brand’s strongest competitor is Dettol, which
has a similar message of being tough on germs, but Lifebuoy
remains the market leader. Unilever is listed on the Indonesia
Stock Exchange.
Mid-priced cigarette brand with
origins on island of Sumatra
GG Mild is a mild-flavored cigarette
brand launched by Indonesian
tobacco giant Gudang Garam in
2013. It has a distinctive blended
clove taste, and is low tar with low
nicotine content. It is a mid-priced
brand and tends to appeal to young
men. Unlike most cigarette brands, which tend to launch in Jakarta
or wider Java, this brand was introduced first to Sumatra. GG Mild
Shiver, a mentholated variant, launched in 2014. The Gudang Garam
stable of cigarette brands date back to 1958, when all its cigarettes
were hand-rolled. Machine production began in the late 1970s, and
both hand-made and machine-rolled cigarettes are popular across
Indonesia. Advertising of tobacco products is heavily restricted,
but television commercials are allowed at certain times of day, and
marketing investment by the tobacco sector is huge.
Some Gudang Garam shares have been listed on the Indonesia Stock
Exchange since 1990, but the Wonowidjojo family, which founded
the company, still owns a majority stake.
104
COMPANY Agung Podomoro Land Tbk PT
YEAR FORMED 2004
Projects under construction include a superblock
development in Medan city center, North Sumatra,
called Podomoro City Deli. Also in the pipeline are the
Orchard Park residential area in Batam, Sumatra, and
the Pakubuwono Springs apartments in South Jakarta.
Agung Podomoro Land is listed on the Indonesia Stock
Exchange and is the flagship listed company in the Agung
Podomoro Group, which completed its first project, a
housing complex in South Jakarta, in 1973.
Green initiatives mark
out developments as
alternatives to city bustle
HEADQUARTERS Kediri
INDUSTRY Tobacco
YEAR FORMED 2013
Jaya Property has developed a portfolio of residential
and commercial developments in South, West, and
Central Jakarta. Its flagship site is Bintaro Jaya, a
2,000-hectare community providing residential and
commercial property, along with schools, sports
facilities and health care centers. Promotions for
the development describe it as “The Professional’s
City”. It is pitched as a satellite town to Jakarta,
providing an alternative to the busy capital; a more
pleasant environment through green initiatives.
In 2014, Jaya Property developed Indonesia’s first
combined pedestrian and cycle paths in Bintaro
Jaya, to encourage motorists to drive less. There are
plans to further develop the central business district
in Bintaro, with shopping centers, small offices,
residential space and combined housing and retail
spaces. Jaya Real Property has been listed on the
Indonesia Stock Exchange since 1994.
COMPANY Jaya Real Property Tbk PT
YEAR FORMED 1979
105
SECTION 03
CALL TO ACTION –
USING MOBILE AS
THE FIRST SCREEN
Hansal Savla
Technical Advisor
TNS
[email protected]
The ubiquity of mobile
phones in Indonesia means
that for consumers – and
for the brands targeting
them – mobile is no longer
an opportunity, but a
necessity. Given that roughly
90 percent of people
who go online in this market
do so via a mobile device, it is
important that brands tailor their
digital communications to the
mobile experience. Mobile is the
main channel through which
consumers access social media
and video.
There are many
resources that
Indonesian
consumers have
more of thanks
to recent years of
economic growth, but time is
not one of them. City living and its
pressures are affecting increasing
numbers of people; 65 percent of
Indonesians are forecast by the
World Bank to be living in urban
centers by 2030, and for many of
these people, time to shop and
time to cook are in short supply.
As such, products and services
that make life a little easier for
consumers are on the rise.
Frozen food, canned food,
coconut milk, and ready-to-drink
tea are some of the categories
that enjoyed higher volume
sales in 2014 compared to a
year earlier, even as prices were
going up. What these categories
have in common is they offer
convenience – they make life just
that little bit easier.
106
Customer service,
fun, brand affinity and
exclusive products
are the key drivers for
consumers to engage with
brands on mobile, especially
via social networks. This makes
content marketing a major
opportunity. E-commerce is a
growing opportunity as well,
but propositions that work on
less-advanced smartphones and
feature phones may be needed
to unlock the full potential of the
Indonesian mobile consumer.
The allure of
convenience applies
CONVENIENCE –
not just to products but
THE HELPING
also to the way people
shop. While traditional
HAND CONSUMERS
general stores are still
the way many people
ARE SEEKING
shop, the modern trade
is enjoying a boom,
particularly mini-markets, which
Fanny Murhayati
provide a good range of produce
New Business Development Director
Kantar Worldpanel
in a small format that’s quick for
[email protected]
shoppers to pop in and out of.
Kantar Worldpanel data shows
the average number of shopping
trips made in Indonesia 2014 was
379 – more than one trip per day.
The competition among retailers
to capture consumers on these
shopping occasions explains the
growing number of mini-markets
across residential areas, with each
brand seeking closeness to the
consumer, on both a physical and
an emotional level.
Convenience pays dividends, for
consumers and for the brands that
can provide it.
The ease with
which people can
access information
in Indonesia is
transforming the
way they think about,
discover, and experience
brands. As an Indonesian myself,
I see the pace with which this
change is occurring.
become more
discerning in
their choice of
brands, and their
expectations
of what brands
can offer have
evolved.
Indonesian BrandZ™ data
from 2011 – just four years
ago - showed that saliency was
the dominant force in driving
brand growth. Since then, the
importance of saliency has
declined considerably. It is no
longer enough for brands to be
visible to drive pre-disposition.
The importance of establishing
a meaningful connection
with consumers has taken
on increasing importance.
Indonesian consumers have
• Focus on building a
meaningful connection with
your consumers
HOW MEANING HAS
BECOME MORE IMPORTANT
THAN SALIENCY IN DRIVING
GROWTH IN INDONESIA
Key actions for
brand success in this climate:
Associate Account Director
Millward Brown
[email protected]
• Identify a core product truth
or functional benefit that
meets consumers’ needs
• Use your product truth as
a platform for telling an
emotionally compelling brand
story
• Be aspirational and inspiring,
but also align with local values
and beliefs.
Out of Home Advertising
is something of a
THE GREAT OUTDOORS –
paradox. It's the
world's oldest form
MOBILE BOOSTING THE
of advertising, but in
POWER OF OOH
Indonesia, its relevance
and power has been
boosted by that most
Gregg Ainsworth
modern of phenomena, the mobile
Technical Advisor
device.
Kinetic Indonesia
[email protected]
Vina Erwita
Indonesian consumers are the
most mobile in Asia, if not the
world, and several factors are
currently conspiring to create a
perfect storm for advertisers. What
are those factors?
Dwell times: we all know the jokes
about Jakarta traffic, but it’s rarely
funny. However, slow traffic means
greater opportunity to create
compelling OOH communications.
Slow desktop internet speeds and
the lowest mobile data costs in
the region: these two facts mean
mobile connectivity is huge. In
excess of 75 percent of social
media engagement is mobile-only,
and Jakarta produces
more tweets than
any other city in the
world.
Put all this together and
we now have the potential to
create unprecedented levels of
OOH engagement by linking OOH
campaigns with mobile devices.
Mobile data can help planners
evaluate OOH sites according
to reach, frequency and pricing,
and OOH sites can trigger mobile
reminders to nearby consumers.
Creative can be adapted in
real time based on real-world
conditions such as the weather or
time of day, and visual recognition
technology allows for new levels
of accuracy in digital ad serving.
When this technology is paired
with mobile ad serving, the result
can be greater than the sum of its
parts.
What’s most exciting about linking
mobile and OOH is that the best
applications are surely yet to come.
107
T H E PAC E O F C H A N G E H I G H L I G H T S D E E P CO N T R A DI C T I O N S
B E T W E E N H I S T O R Y A N D M O D E R N I T Y, H E R I TA G E A N D O P P O R T U N I T Y
SECTION 03
Card service innovations
drive banking brand
Pay TV giant beams local
and international content
across Indonesia
COMPANY MNC Sky Vision Tbk PT
INDUSTRY Entertainment
YEAR FORMED 1994
Indovision is a subscription-based satellite television provider
that has a long-standing reputation in the market for using
pioneering technology, and delivers quality local and international
programming. The brand marked its 20th anniversary in 2014 with
a celebratory music concert and exhibition which involved many of
its content and advertiser partners, including Electronic City, Disney
Channel, HBO and Standard Chartered. The brand is part of MNC
Sky Vision – the country’s biggest pay TV provider – which in turn is
part of MNC Group, the largest integrated media group in Indonesia.
The group also owns 4 out of 11 free-to-air TV channels, 19 pay TV
Channels, as well as several tabloids, magazines and radio channels.
The brand’s communications slogan is “Bukan yang lain”, which
means “No other”. Most of the country’s competing pay TV brands
are also part of the MNC Sky Vision family; Top TV was launched
in 2007 as a more affordable service than Indovision, which is a
premium brand aimed at the middle classes. MNC Sky Vision is listed
on the Indonesia Stock Exchange.
Strong links with national football
brings success for shampoo brand
Clear is an anti-dandruff shampoo that over
the past 40 years has become one of the
biggest shampoo brands in Indonesia, thanks
to heavy communications investment from
parent company Unilever, and the appeal
of dandruff treatments in a tropical climate
where dandruff is a common problem. In
its communications, Clear’s slogan is ”Tak Ada yang Disembunyikan”, or
“Nothing to hide”, which was introduced to the market in TV commercials
featuring well-known Indonesian actor and singer Agnes Monica, in 2013.
Clear positions itself as the only brand that is truly effective against dandruff.
The brand has been a long-term supporter of Indonesian football and the
footballing chant “Ayo Indonesia Bisa”, or ”Go, Indonesia, we can!”, has
become associated with Clear. The brand has recently sponsored the AIB
Academy for up-and-coming footballers. Of all the Unilever shampoo
brands, Clear attracts the highest media investment. Unilever Indonesia is
listed on the Indonesia Stock Exchange.
110
COMPANY Bank CIMB Niaga Tbk PT
INDUSTRY Banks
YEAR FORMED 1955
CIMB Niaga was formed by the merger of Lippo
Bank and Bank Niaga, and while it has branches
across the country, it promotes branchless banking
with a communications focus on the desirability
of its credit and debit card services. It has financial
services subsidiaries offering Islamic banking, asset
management and insurance. The distinctive red
CIMB Ultimate card is a premium account with a
rewards scheme and concierge service; its slogan
is “Red is the new black”. CIMB Tabungan Xtra is the
bank’s savings product, with a free debit card and no
monthly fees, while the CIMB AirAsia Savers account
and AirAsia Visa Card allow customers to earn points
to put towards flights with AirAsia, the regional airline.
The Malaysian-based banking group CIMB, which
has operations in Singapore, Malaysia, Cambodia and
Thailand, owns a controlling stake in CIMB Niaga,
which is traded on the Indonesia Stock Exchange.
Noodle pioneer focuses
on family and tradition
YEAR FORMED 1975
Supermi was the first brand of instant noodles to launch
in Indonesia, and highlights this heritage through its
communications and product range. While its packaging
has been updated to give it a modern feel, their most recent
product lines bring to life the flavors of traditional Indonesian
dishes such as sop buntut (oxtail soup) and semur ayam, a
type of chicken stew with sweet gravy. Since 2013, Supermi
has promised consumers "Kelezatan yang tak terganti",
irreplaceable deliciousness, and its advertising campaigns
focus on family settings, usually a mother serving a meal to
the family. The link between the present day and the history
of the brand is underlined with comments in ads such as “the
brand my mother used to cook” and “it reminds me of my
mother’s cooking”. Supermi is owned by Indofood, which
also produces Indomie and Sarimi; Supermi is the mid-range
option. Indofood is listed on the Indonesia Stock Exchange.
The company also produces dairy products, snacks, food
seasonings, baby food and beverages.
YEAR FORMED 1968
111
SECTION 03
Credit card giant offers exclusive
shopping deals with retail partners
Bank Mega’s business comprises consumer, commercial and corporate
banking, but is best known by the public as a credit card provider. It is
the biggest issuer of Visa cards in Indonesia, and has issued a total of 2
million credit cards. It appeals to consumers with promotions for card
holders – some ongoing and some one-off special events. In June, the
bank’s card holders were able to buy products at a Nike Warehouse Sale
at discounts of up to 80 percent. Regular promotions include discounts
and rewards at restaurants, fashion stores, department stores, and deals
on travel and entertainment. Bank Mega’s communications focus on
the brand becoming “the pride of the nation” under the slogan “Untuk
Indonesia yang Lebih Baik”, which means “For a better Indonesia”.
COMPANY Bank Mega Tbk PT
INDUSTRY Banks
YEAR FORMED 1969
The bank’s origins were in Bank Karman, which launched in Surabaya in
1969; it rebranded as Mega Bank in 1992, and moved its headquarters
to Jakarta, and since 2000 has been known as Bank Mega. It was
one of the few banks able to survive the economic crisis of the 1990s
without government assistance. The company is listed on the Indonesia
Stock Exchange. The majority stakeholder is CT Corpora, run by former
government minister Chairul Tanjung, whose other businesses span
media, entertainment and natural resources.
Finance brand helps
Indonesians get motoring
COMPANY Sinar Mas Multiartha Tbk PT
INDUSTRY Banks
YEAR FORMED 1982
Sinar Mas Multiartha is the holding company
for financial businesses within Sinar Mas, and
its subsidiaries provide expertise to private
and corporate customers across a range of
investment services, including underwriting,
consumer financing, securities administration,
securities brokerage, investment management,
IT, and trading. Insurance is the largest part of its
business, but the brand is also well known as a
source of consumer credit to buyers of cars and
motorcycles.
Sinar Mas Multiartha is majority owned by Bank
of Singapore Limited, with a small stake held by
Credit Suisse AG. The remaining 45 percent of
shares are owned by the public and traded on the
Indonesia Stock Exchange.
Budget noodle brand
focuses on value for money
Sarimi is the third-largest
instant noodle brand in
Indonesia, and as one of the
lower priced brands available,
enjoys popularity among
lower income-earners and
more rural consumers. In its
communications, the brand tends to feature rural settings and
well-known musicians whose traditional ‘dangdut’ music is
popular in rural neighborhoods.
Following the success of their double pack, Sarimi Isi 2, a
couple of years ago, Sarimi has launched an even bigger
pack and several new flavors. Its advertising slogan is “Sarimi
lengkap puasnya”, or “With Sarimi, satisfaction is complete”, with
communications focused on the low price, large pack size,
and the fact that packs include toppings. Sarimi is distributed in
several ASEAN countries, however sales are well below those of
the more widely known Indomie brand, which is also made by
Indofood. Indofood is listed on the Indonesia Stock Exchange.
112
Celebrity couple help
promote everyday luxury
YEAR FORMED 1982
Lux skin cleansing products have been synonymous with femininity
in Indonesia for many years, and its regular product innovations have
kept this brand fresh and desirable for generations of women. Attractive
fragrances and glamorous local celebrity brand ambassadors set the
brand apart from the competition, justify its premium pricing, and keep
Lux in its market-leading position. Its “Just a little Lux” slogan has long
been used to suggest everyday luxury for the women who use it.
In the past year, Lux has used real-life celebrity couple Ashraf Sinclair and
Bunga Citra Lestari in communications to support the launch of the new
Lux Soft Touch range, delivering significant cut-through after a two-year
spell without a famous face. The brand communicates across multiple
platforms, and launched its 2015 Lux Fine Fragrance range with a social
media campaign, Lux Unforgettable Girl, on YouTube, Facebook and
Twitter. Brand owner Unilever is listed on the Indonesia Stock Exchange.
YEAR FORMED 1936
113
SECTION 03
Banking ‘jewel’ promises
to help families
Consumer credit
provider buoyed by
growing vehicle sales
COMPANY Bank Danamon Indonesia Tbk PT
INDUSTRY Banks
YEAR FORMED 1990
Adira Finance is best known as a provider of consumer
credit for buyers of motorcycles and cars, both for new and
used vehicles. Adira employs more than 28,000 people in
667 branches, serving more than 3.7 million consumers
each year. Most motorcycle purchases in Indonesia are
made with credit, and Adira is one of the biggest players in
this field. This is a strong sector to be part of; Indonesia is
the biggest market for motorcycles in Southeast Asia and
the third-biggest market in the world after China and India.
As well as providing consumer credit, Adira also arranges
credit for the commercial leasing of cars, and insurance
products aimed at motorists. Adira offers consumers
Shariah-compliant credit options. The company was
founded in 1990 and started operating in 1991. It is 95
percent owned by Bank Danamon and in 2013 contributed
almost half of Bank Danamon’s net income.
Digital push provides for banking
customers on the move
Danamon emerged from the
financial crisis of the late 1990s as
a strong financial institution. It was
one of nine banks taken over by the
government at the height of the crisis,
and merged into one bank under the
existing Danamon name. It remains
a quarter-owned by the public, with the majority of shares owned by
Asia Financial (Indonesia) with a small stake held by JPMCB-Franklin
Templeton Investment Funds. Danamon has run the American
Express card business in Indonesia since 2006, and offers Shariah
banking services.
Recently, Danamon has been developing services aimed at the
mobile-connected consumer. D-mobile, a range of mobile banking
apps, launched in November 2014. These allow customers to make
easy transfers to their Facebook friends, and, through an augmentedreality feature, can find any Danamon branch or promotion within a
5 kilometer radius of their location. Danamon’s marketing slogan is
"Untuk Anda, Bisa", which means “For you, we can”. Danamon owns
95 percent of Adira Finance, best known as a provider of consumer
credit for buyers of motorcycles and cars, and is listed on the
Indonesia Stock Exchange.
114
COMPANY Bank Permata Tbk PT
INDUSTRY Banks
YEAR FORMED 1955
Present-day Bank Permata had its
origins in Bank Persatuan Dagang
Indonesia, which launched 60
years ago and was renamed Bank
Bali in 1971. Permata Bank was
created in 2002 by a merger of
five banks – Bank Bali among
them – which had all been taken
over by the government. Permata
means ‘jewel’, and the name
is said to have been chosen
by then-president Megawati.
Permata offers commercial and
consumer banking, and offers
Shariah banking options. Permata’s
slogan in its communications
is "Jutaan Keluarga, Satu Bank",
which means ‘Millions of families,
one bank’; the bank tends to
focus on its customer service and
how Permata helps enable family
moments. Permata is uniquely
positioned in the Indonesian
banking industry as the only local
bank with Astra International
and Standard Chartered bank as
strategic shareholders. Permata
launched a Hajj Service in 2014,
enabling Muslims to make
payments towards their Hajj
pilgrimage, and a special debit
card designed by batik maestro
Iwan Tirta for its Permata Priority
customers. The bank has partnered
with the airline Garuda Indonesia
to conduct joint promotions on
flight payment schemes, and runs
education and entrepreneurship
projects.
Permata Bank is listed on the
Indonesian Stock Exchange;
Standard Chartered and Astra
International have between them
held the majority of shares since
2004; the remaining shares are
owned by the public.
Historic banking brand
helping consumers on
to the housing ladder
COMPANY Bank Danamon Indonesia Tbk PT
INDUSTRY Banks
YEAR FORMED 1956
BTN’s heritage goes back to 1897, when it was established
during the Dutch colonial era as Postpaarbank. In 1950,
the Government of Indonesia changed its name to Bank
Tabungan Pos, and in 1963 it took its current name. The
bank has the largest mortgage portfolio in Indonesia, and
consumer credit for housing has been its focus since the
1970s, when it was appointed by the government as the
only institution at the time allowed to provide mortgages
to lower income earners. BTN works with the government,
which is aiming to provide one million homes a year to
low-income families, by providing subsidized credit at
lower-than-market interest rates, and the ability to buy a
home with a 1 percent deposit. Like most consumer banks
in Indonesia, BTN offers Shariah banking products. In
2009 it was listed on the Indonesia Stock Exchange. The
Government of Indonesia is the majority stakeholder, with
employees and the public owning the remaining shares.
COMPANY Bank Tabungan Negara Persero Tbk PT
INDUSTRY Banks
YEAR FORMED 1897
115
SECTION 03
Microbanking service helps
bank deliver on CSR promises
COMPANY Bank Internasional Indonesia Tbk PT
INDUSTRY Banks
YEAR FORMED 1959
BII offers business and consumer banking, and is known for its
finance products for buyers of motorcycles and cars. It was the first
bank in Indonesia to launch internet banking and to offer a credit card
with smart chip technology and, like many Indonesian banks, offers
Shariah banking options. At the end of 2014, BII had 428 branches.
The bank recently launched the BII White Card, with exclusive offers
aimed at young professionals. In 2014, the bank launched a microbanking service called BII Pijar designed to empower people in poor
communities to launch small businesses. Its CSR work includes an
in-depth project with a fishing community in West Java, improving
fishermen’s equipment, processing and storage facilities, helping
their children with school supplies and renovation work to their
school building. The bank sponsors the BII Maybank Bali Marathon
which, in its third year, last year attracted runners from 49 countries
and offered total prize money of US$150,000.
Outside Indonesia, BII has branches in Mauritius and Mumbai. BII
shares have been listed on the Indonesia Stock Exchange since 1989;
the majority of shares are owned by Maybank, Malaysia’s largest
financial services group.
Parent company Salim Ivomas Pratama owns four manufacturing
plants in Indonesia, in Jakarta, Surabaya, Bitung and Medan, and
in addition to its flagship brand, Bimoli also produces the Simas
and Royal Palmia margarine brands. Salim Ivomas Pratama was
listed on the Indonesia Stock Exchange in 2011.
The current tightening of household budgets has not
affected all categories and brands equally. Income
disparity across the country, intensified by the
economic slowdown, is largely responsible for
declining sales. While the country will overcome
the current conditions thanks to strong macroeconomic fundamentals, in the short to medium term,
brands need to engineer growth rather than wait for it to
return.
COMPANY Salim Ivomas Pratama Tbk PT
YEAR FORMED 1978
Packaged goods as diverse as
liquid soap and baby diapers
are enjoying volume
and value growth
HOW LARGER PACKS
by up-sizing their
packaging. As a result,
DELIVER THE VALUE
55 percent of fastSHOPPERS WANT
moving consumer
goods categories are
being bought in higher
Soon Lee Lim
volumes per shopping trip, Kantar
General Manager
Worldpanel data comparing 2013
Kantar Worldpanel
and 2014 shows.
[email protected]
Consumers are either choosing
a larger pack because it delivers
better value for money, or
buying more units per shopping
116
The youth of this
market means that
many of the people
considering your
category simply weren’t there
a year or two ago; for the most
part, they don’t know who you
are or what you do. There are five
million people entering the urban
consuming class annually – the
equivalent of the entire population
of Singapore hitting the shops
every year for the first time.
Consistency of messaging, look,
and tone, helps people identify
your brand, recognise it when they
see it again, and stick with it.
ENGINEERING
GROWTH AT A TIME OF
CONSUMER AUSTERITY
Catalyzing this growth requires critical examination of what
the brand stands for and who it is targeting. Is it a premium brand
aimed at the affluent, or perhaps a value brand for the aspiring middle
classes, or a low-priced brand for the less well off? Then, brands must
customize their strategies for consumers at different points on the
wealth continuum. Understand what connotes status to each of these
audiences, to tap premiumization opportunities. Look at what signals
value, to help consumers make smart choices, and think about how a
brand reassures cautious buyers in tough times.
Leading cooking oil takes ‘golden
glow’ to neighboring markets
Bimoli is Indonesia’s leading brand
of cooking oil, a staple product
in Indonesian cooking. It is a
vegetable oil derived from palm oil.
Bimoli prides itself on its ‘golden
refinery’ technology in processing,
which results in cooking oil with a
golden glow. Its brand promise is “Kilaunya Hidupkan Semangat”,
meaning ‘”Its glow ignites the spirit”. Sales of oils and fats in
Indonesia are dominated by unbranded products, both at retail
and to the food service industry, with 75 percent of sales in the
category unbranded in 2014. The majority of Bimoli sales come
from Indonesia, but the brand is also exported to Papua New
Guinea, the Philippines and Timor-Leste.
In a market developing
as rapidly as Indonesia’s,
WHY CONSISTENCY
there is an urgency
among brands to ensure
SHOULD NEVER GO
that they too move with
OUT OF FASHION
the times, but it is worth
reminding brands of a
word that is at risk of
falling
into
disservice: consistency.
Anita Devraj Mookerjee
But, you might think, consistency
CEO
MediaCom
is boring. Consistency is just a lack
[email protected]
of ideas. Consistency is standing
still. Wrong, wrong, wrong.
Consistency takes a very deliberate
effort, and has significant value
when the world around is in
constant flux.
Kennedy Joseph
Technical Advisor
TNS
[email protected]
trip. Often, though, when
consumers buy more of a
product, they tend to use
more, and this is delivering
volume growth for many
categories and brands.
There is something of a
psychological barrier to buying
what consumers perceive as
a very big pack of something;
providing a range of pack sizes
that cater for different levels
of affordability is important for
brands, to help consumers feel
comfortable buying progressively
larger packs. Ultimately, though,
brands should think big!
117
AFFLUENT SHOPPERS DESIRE PREMIUM GOODS AND SERVICES
A N D A R E PR E PA R E D TO PAY FO R T H E M
SECTION
BRAND
BUILDING
BEST
PRACTICE
Brand Building LESSONS FROM CHINA
SECTION 04
BRAND BUILDING
THE 1,000%
LESSON
FROM CHINA
Innovate to
grow brand love
Another trend that these brands have taken advantage
of is the blurring of consumer and business services in
an increasingly connected world. Being in the Cloud and
available to many constituents is a route to profitability if the
brand is clear.
Peter Walshe
BrandZ™ Global Strategy Director
Millward Brown
[email protected]
A decade ago, there was only one brand
from China in the BrandZ™ Top 100
Most Valuable Global Brands: China
Mobile. Today there are 14, and their
cumulative value has increased by
1,004 percent to US$432 billion.
This growth has been fuelled by technology and telecom
brands, which comprise six out of those 14, along with
four banks, two insurance companies, and two oil and gas
corporations. In fact, these technology and telecom brands
account for 95 percent of the value growth of Chinese
brands in the Global Top 100 over the past five years, so
learning from their success is instructive for Indonesian
brands. Tencent, the most valuable Chinese brand, with a
brand value of US$76.6 billion, is worth more than the entire
Indonesia Top 50 added together (US$64.6 billion).
Clearly, the size of the country makes a difference to the
value of brands there. But we see brands such as Tencent,
Alibaba, Baidu and Huawei making a concerted effort to
export their brands. Indonesia’s top publicly quoted brands
have yet to make this move. But in order to expand to other
territories, a brand needs to understand what its proposition
is – what makes it meaningfully different – and whether this
translates to other markets.
The platforms established by Alibaba, Tencent and Baidu to
encompass services that delight and seamlessly connect
in order to make consumers’ lives better are outstanding
examples of successful brand exports. Adapting to language
and regional differences further endears them to users. In a
borderless e-commerce world, the ability to connect buyers
and sellers in an interesting and relevant way is signalled
by the brand and the experience it can deliver. The China
technology and telecom brands that were in the rankings
five years ago - Baidu, China Mobile, China Telecom
and Tencent - have boosted their brand equity scores
significantly, which has affected their value increases:
China Technology /
Telecom Brands
Millward Brown is a leading global research agency specializing
in advertising effectiveness, strategic communication, media and
brand equity research.
www.millwardbrown.com
122
2011
2015
Change
Different
111
125
+14
Meaningful
113
125
+12
Salient
104
130
+26
Value
$104.6bn
$187.6bn
+79%
(Other China brands)
($145.7bn)
($145.8bn)
(0%)
One of the drivers of Difference is a perception of
innovation. If the brand is felt to be ‘setting trends’ then
consumers believe it is up to date, superior and developing
difference that matters for them. The technology and
telecoms brands from China score at a high 123 (against
an all-brand average of 100) compared to the Indonesia
Top 50 with an average score of only 103. But innovation
needs to be recognised and comprehended; otherwise
it is not an innovation in the minds of consumers and will
not drive success. The Alibaba innovation is to combine
many services into one ecosystem for the benefit of users:
an online market place for consumers, businesses and
auctions, a payment and delivery system that is secure and
trusted, as well as a photo messaging service and even
music streaming. The focus is the consumer experience.
Being meaningful or relevant and empathetic is a vital
driver for value growth. And, again, this is where the
Indonesian brands could improve, by developing greater
‘love’. The BrandZ™ Top 100 lesson over 10 years suggests
that brands that drive innovation get talked about more,
generate trial and ultimately translate these encounters
into love. Love then sustains the brand until further
innovation. The Indonesia Top 50 only scores 108 on love,
compared to 137 for the China technology and telecom
brands. Baidu and China Telecom lead on this measure.
Baidu has consistently been language and dialect-friendly
which, when combined with exploitation of mobile, has
given it a lead in search; it is now exporting this to Brazil
with a Portuguese-language version. China Mobile, with its
first mover 4G licence, is also capitalizing on an increasing
appetite for data usage across multiple platforms, and a
move into online payment and other services with youth
appeal.
In Indonesia, the four Telecom and TV brands in the Top
50 have strong brand equity (on average: 141 Different, 136
Meaningful and 166 Salient). But they are still behind on love
and innovation, relying more on being famous or salient. So
can these propositions be strengthened and exported more
widely? Can they create a deeper ecosystem?
The Indonesia technology brands that show considerable
promise tend to be digital versions and developments of
publishing and entertainment brands – Kompas.com, an
online version of the newspaper group which also has a TV
content provider, and DetikCom, an online news and article
web site. As these are not listed public companies they do
not qualify for this valuation ranking, but the BrandZ™ data
we collect shows their brands are Meaningful and Salient,
but lack strong love, innovation and differentiation.
The overriding lesson drawn from the growth of China’s
technology and telecom brands is that Difference makes
the difference. A thousand percent, and more.
123
Brand Building BIG IDEALS
SECTION 04
BRAND BUILDING
WHAT’S
THE BIG
IDEAL?
Why brands need
a higher purpose
Brands have traditionally been built
on big ideas, but for brands to be truly
powerful, they need to go beyond big
ideas, and be built on big ideaLs. It’s
easy to miss the difference, but it has
huge implications.
Katryna Mojica
Chief Executive Officer
Ogilvy & Mather
[email protected]
David Ogilvy once
said, “Unless your
advertising contains
a big idea, it will pass
like a ship in the night.”
More than 50 years
later, this remains true;
but perhaps a bit of
evolution is healthy.
As its name implies, a big ideaL
connotes a higher purpose. Brands
are much stronger when they have
a unique belief, philosophy or pointof-view about the world, and the role
that they can play in it to make the
world better.
Coca-Cola is a powerful brand
because it isn’t just about
refreshment, it inspires people with
optimism. For more than half a
century, the brand has rallied people
to look at the glass as half full,
rather than half empty, especially
in challenging times. The famous
Coke ‘hilltop’ ad from 1971 gathered
people from all over the world to sing
“I’d like to buy the world a Coke and
sing in harmony”, at a time when all
eyes were on the conflict in Vietnam.
It established Coke as an enduring
source of optimism and inspired
the belief that, despite people’s
differences, we could always find
common ground.
Dove, meanwhile, is not just about
beauty: it’s about self-esteem. The
brand has continually found ways
to show women that they are much
more beautiful than they think they
are. The idea engages and provokes;
the brand’s 2013 film “Sketches” has
received 163 million views because
it offers a point of view of the world
that is uniquely Dove’s.
Ogilvy & Mather is one of the largest marketing
communications companies in the world,
providing specialist services in advertising, digital
communications, public relations and activation.
Indonesia’s own SariWangi tea
became all the more relevant to a
new generation of women when it
proposed that tea should no longer
be a time to serve, but become a
time to share. It understood that
women wanted more equitable
relationships with their husbands, and
provided a platform from which they
could influence change. Even more
than five years later, the “Mari Bicara”
campaign (Let’s Talk) that launched
this idea is memorable.
A big ideaL represents a philosophy
and a point of view of the world that
the brand believes in. And because
of this, it can generate much more
support than a brand positioning
or a brand benefit would. It works
on the basis that when a brand
authentically supports a point of
view that people can truly believe in,
it makes it that much easier to rally
support for the brand.
In 2006, when the concept of
the 'big ideaL' was first formed at
Ogilvy & Mather, this was relevant.
But in today’s digital world where
consumers have real power over
brands and how they are perceived,
it is absolutely essential. It recognizes
that consumers have become
increasingly involved in ensuring that
the brands they use are in line with
their personal beliefs.
A big ideaL is also essential in
ensuring that a brand maintains
its consistency and authenticity
amidst the demand for real-time
communication and the need for
a seamless flow of communication
across channels. Digital acceleration
has revolutionized communication,
and with the increasing
fragmentation of channels and
messages, with both internal and
external parties now involved in
developing and evolving a brand’s
message, it can be difficult for a
brand to stay true to its DNA. This
makes it all the more important to
have a big ideaL that informs and
influences all communication.
Indonesia has the scale to build
brands that have international
stature, and the current conditions
– economic, technological and
social – provide the right climate in
which these brands can foster big
ideaLs. While brands can make gains
by emphasizing their functional
benefits, availability and price, they
have an opportunity now to establish
themselves as leaders, carrying
greater significance than their rivals,
by creating cultural impact, and
influencing norms and beliefs.
www.ogilvy.com
124
125
Brand Building LOCALIZATION
SECTION 04
BRAND BUILDING
DEVELOPING
LOCAL
MEANING
Presenting a locally
relevant face to
global brands is
essential to success
Richard McLeod
Account Director
Millward Brown
[email protected]
The allure of Indonesia
as a growth market
for multinational
businesses is clear,
as evidenced by the
sizeable investments
being made by the
owners of some of the
world’s biggest brands.
The scale of this opportunity for
ambitious, multinational businesses is
neatly summed up by Vismay Sharma,
president of L'Oréal Indonesia:
“Indonesia is one of the most
promising markets for L’Oréal. We’ve
got more than 240 million consumers,
and these consumers are making
more money every year. As these
consumers make more money, they
look towards aspirational brands and
effective products.”
But bringing a globally successful brand
to this complex and fast-changing
market requires sensitivity and the ability
to build a connection with consumers
that has local relevance and meaning.
As the market matures, brands are
playing an increasingly important role
in the lives of consumers – and that is
fundamentally changing the consumerbrand relationship. Indonesia has
evolved from a market where brands
can win through saliency alone, to
one in which they must establish a
meaningful link with consumers’ lives.
SAFE LANDING
Millward Brown is a leading global research agency specializing
in advertising effectiveness, strategic communication, media and
brand equity research.
www.millwardbrown.com
126
But what does this mean for
multinational businesses seeking to build
meaningful brands in Indonesia? Can
international brands ever hope to build
as strong a connection with consumers
as the emerging local giants?
Millward Brown research suggests that
international brands certainly can build
strong connections with Indonesian
consumers, but only by finding a
locally relevant articulation of their
brand proposition. Comparing the
average Meaningful Index of the top
10 most powerful international brands
in Indonesia and the top 10 most
powerful Indonesian brands, we see
that the local brands are only marginally
more meaningful.
The Futures Company has identified an
inherent tension that drives many of the
brand decisions made by Indonesian
consumers. Their research has
found that 65 percent of Indonesian
consumers claim to be “always looking
for different cultural experiences
and influences that will broaden my
horizons”. But this sense of adventure
co-exists with 73 percent worrying
“that the values and traditions that I
most appreciate about my country are
being eroded by other cultural/global
influences”.
The brands that help consumers
to resolve these tensions, offering
something different and aspirational,
while not undermining traditional
values, will be primed to succeed in the
new Indonesia.
OUT-PERFORMING LOCAL BRANDS
The international financial services
group Prudential ranks on the Millward
Brown Meaningful Index as having
the most meaningful connection with
consumers of any insurer in Indonesia
- outperforming local competitors such
as Bumiputera-Commerce Bank and
AXA Mandiri. It has achieved this by
delivering a locally relevant expression
of its global brand DNA.
In 2015, Prudential has been
emphasizing its local heritage by
celebrating its 20th year in Indonesia.
The brand acknowledges local
sensitivities and demands, offering
Shariah insurance products to ensure
that the brand is accessible to Muslim
consumers.
Around the world, Prudential uses
CSR initiatives to ensure that the
business plays an active role in the
local communities that it serves. Here,
Prudential Indonesia in 2012 launched
the “Million Hearts for A Million Dreams”
campaign, which aimed to reach one
million people by the end of 2014
with a range of programs focused on
children, education, environmental
preservation, and disaster relief. The
company’s broader mission is to
help families towards a more secure
financial future.
HIGH-STAKES GAME
For every brand that gets it right
in Indonesia, there’s another that
consumers reject for not tailoring its
proposition to their needs.
Sandwich store network Subway
has had huge success around the
world, and the BrandZ™ Top 100
Most Valuable Global Brands 2015
saw Subway ranked 40th, with a value
of over $22 billion. But one market
that Subway has failed to capture is
Indonesia.
In the early 2000s, the last of Subway’s
10 franchised restaurants in Indonesia
closed down. Subway’s failure here
revealed the dangers of not localising
a global brand proposition for local
consumers.
The major barrier was the Subway
menu itself. As one Indonesian
consumer recalls on Quora.com:
“There was once a Subway restaurant
in Plaza Senayan, though it wasn’t
too popular because of Indonesian
culture. We always want to have rice
for lunch/dinner. A meal without rice is
considered a snack.” Other global food
franchises, such as McDonald’s, Burger
King and KFC, have had more success
in Indonesia by providing local rice and
fried-chicken options alongside their
global menu offerings.
ACTION POINTS FOR
INTERNATIONAL BRANDS
• Focus brand strategy on building a
meaningful connection with your
consumers
• Resolve tensions for consumers – be
aspirational and inspiring, but also
align with local values and beliefs
• Embed a common understanding
of your local brand mission among
your staff and partner agencies in
Indonesia
• Use the local expression of your
brand DNA as the lens through
which both proposition and product
offer is defined.
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T H E R E I S G R E AT C U LT U R A L DI V E R S I T Y AC RO S S I N D O N E S I A
I N S P I R I N G D I F F E R E N C E S I N T H E VA L U E S P E O P L E H O L D
Brand Building HAPPILY EVER AFTER
SECTION 04
BRAND BUILDING
AND THE
BRAND
LIVED
HAPPILY
EVER AFTER
Why the brave will tell
consumers a story
Maxus is a global network of local media agencies with
services including communications strategy, media
planning and buying, digital marketing, social media
strategy, SEO, PPC, direct response media, data analytics,
and marketing ROI evaluation.
Avinash Pareek
Strategy and Communications Planning Director
Maxus
[email protected]
Storytelling is the
most compelling way
of being heard and
remembered amongst
a cacophony of brand
messages. Brands that
embrace storytelling
find a way into
people’s hearts.
The fact is, we never bought our TV
sets for TV commercials. Yet when
the little pug from the Budweiser
commercial trots in front of five
gorgeous Clydesdale horses, after its
epic story of being lost and found,
we all get a little glow of happiness.
Our eyes light up, we smile, and – on
our tablets and phones – we rewatch
and we share it with our friends. This
is not so very different from a small
child who delights in listening to his
mother retell their favorite stories,
to which he adds his own. Even as
adults, we love stories. Storytelling
fulfils a basic human need, and it
needs to return to our marketing
charts.
When the communication app LINE
launched its 2014 mini-sequel to
the 2002 smash hit film “Ada Apa
Dengan Cinta?” (What’s With Love?)
it took Indonesian audiences by
storm. This was an emotion-charged
story of a couple who had separated
in the movie, getting back together.
The sequel brought happy memories
flooding back to the adults who had
loved the film in their youth. The
sequel became a sensation on social
networks, chat apps and in general
conversation. This was a piece of
branded content, but the brand’s
presence was subtly handled –
discreetly woven into a beautiful story
that resonated with people and their
memories.
It is true, though, that the pressures
of the boardroom put pressure on
marketers to tread cautiously, and the
freedom to tell a creative story can
be constrained. But there is strong
evidence that storytelling has a real
impact on consumers. Neuroscience
shows that when people are told a
story, six regions of their brain are
activated; this compares to just two
regions when people are told a series
of facts.
Even in categories where it might
seem the facts really are the story,
true storytelling can have a big
impact. The analgesic Counterpain,
for instance, moved away from
the usual sore bodies and glowing
pain spots to tell a real story of a
man carrying his grandson on his
shoulders and putting up with the
pain, however much it hurt.
The media landscape is not getting
any simpler, and the ability of ads to
cut through is in decline. So, where
do we go from here?
Brands need stories to bring back
the romance; we should plot a ‘share
of heart’ chart next to our graphs
on share of voice. Great storytelling
is not a sweetener. It is the main
course. When budgets are tight, this
takes bravery, but being brave is the
only option.
Most people in marketing joined this
industry to explore the unexplored,
to write poetic lines and put their
imagination on billboards. That is
risky, but where has that appetite
for adventure gone? We must
remind ourselves of the great
work that inspired us to join this
industry, and attempt to make
some of our own. This year, Thai
mobile phone network TrueMove
made a wonderful film on ‘The true
meaning of giving’. Virgin America
created a 5 hour 45 minute film
to literally demonstrate how poor
flying with another airline can be.
That’s brave.
The best time to tell a story
is now. Sharing is an ancient
human behavior, but now it’s so
convenient. Brands can tell a big
story in different ways that can be
shared across platforms. We were
never better equipped than now to
engage people with content, from
TV to tweets.
Archetypes are the beginning of
everything. People are emotional
beings and brands are, at their most
basic level, just badges that products
carry. But Nike goes on to create a
community of ardent lovers. People
swear by Harley Davidson. L’Oréal
is a statement that women make to
define womanhood. These brands
are not just badges; they have
personalities and tell a story. Strong
brands are explorers, magicians,
lovers, or the guy next door. The
genius lies in knowing who they
are and the stories they want to
tell. This is probably the easiest way
for a brand to generate a premium
without having to justify it with facts.
People who only buy Nike probably
don’t do it because they believe
Nike makes the best shoes in the
world, but because it pushes them
to do their best.
Stories are effervescent. So, next
time you sell a smartphone, don’t
sell features, tell a story and sell the
glint in the consumer’s eye.
www.maxusglobal.com
130
131
Brand Building CREATING COMPLEX BRAND PERSONALITIES
SECTION 04
BRAND BUILDING
WHEN
OPPOSITES
ATTRACT
Creating complex
and alluring brand
personalities
When we look to the brandscape
in Indonesia, it begs the question:
is the pursuit of simplicity in
messaging leading brands away from
opportunities to be more human, to
explore their own tensity?
Kris Constantoulas
Head of Strategy
Y&R
[email protected]
Tension is defined
as a palpable energy
created by opposite
forces, and when it
exists, it often makes
things much more
interesting, even
irresistible.
Great characters and fascinating
celebrities often embody great
tension. Marilyn Monroe combined
innocence with sex appeal, for
instance, while Batman embraced
the duality of darkness and light.
Culturally, we’re captivated by these
personalities.
At Y&R we call the appeal of tension
‘Tensity’ (Tension + Irresistibility).
Essentially, tensity is the narrative arc
that brands need to become effective
storytellers. Land Rover is a great
example. Its image is rugged and
hard-working, yet it is also luxurious,
giving it an alluring duality. But for
most brands, such depth of character
is counterintuitive.
Y&R Group is one of Indonesia’s leading
communications agencies. Encompassing Y&R, VML
(digital), Wunderman (data and CRM) and Landor
(branding), its specialist agencies live by the saying
‘great alone, better together’. It’s often our integrated
approach combined with living our mantra of resisting
the usual which sets us apart from our rivals and delivers
creative solutions to real-world business problems.
www.yr.com
132
Conventional marketing theory
encourages us to lock brands into
clever positioning statements, with
single-minded propositions based on
the one thing we need people to know
that makes us different. At best, brands
usually champion one or two attributes
and, in overlooking the others,
miss out on a chance to humanize
themselves and captivate consumers
with a more complex story.
Tensity helps make brands appealing
to consumers around the world, but it
has particular resonance in Indonesia,
where managing and embracing
contradictions is part of everyday life.
There is no bigger underlying tension
in Indonesia than the cultural divide
between tradition and modernity, and
consumers are trying to balance the
two.
SHAKING UP THE MARKET
Across Indonesia we are witnessing
the emergence of a pioneering
generation of brands and individuals
who are resisting the loss of their
cultural identity by reinterpreting,
reinvigorating and reclaiming both the
modern and the traditional. They are
uniting digital and analog, local and
global, in an effort not just to preserve
their culture but to create one that can
hold its own on the world stage.
• Pasar Santa, a traditional market
in Jakarta, has transformed itself,
and with the help of a group of
young entrepreneurs has turned
an ageing market into the hippest
place in town. The first floor of the
market still remains as it has for over
a decade, while the second floor
has been redesigned to look more
contemporary, artsy and trendy,
while retaining its traditional market
spirit.
• International brands can draw on
Indonesian tradition, too. When
Google launched its Chrome web
browser in Asia with the promise
“Chrome is not your traditional
browser”, it could have focused just
on speed and security. Instead, it
united old and new. The company
demonstrated Chrome's capabilities
through the retelling of a traditional
story: the epic tale of Ramayana.
• In the most modern of city malls,
young shoppers are wearing
clothing emblazoned with the
slogan “Damn I Love Indonesia”.
The business behind this range
is working to promote cultural
preservation through design
and fashion, creating a medium
through which young Indonesians
can learn more about their culture
and traditions, in a way they can
relate to. Their tagline, “Patriotism
Never Looked This Good”,
encapsulates their mission.
• The Jogja Hip Hop Foundation, a
prominent band, is an intriguing
fusion of Western youth culture
and Indonesian history. Inspired
by Javanese poetry and traditional
‘gamelan’ orchestra sounds, they
are creating a fresh fusion of old
and new Indonesia, mixing ancient
rhythms and sensibilities with
modern hip hop beats.
• The traditional batik fabric dyeing
process, a source of immense
national pride with a heritage
dating back to the 6th century, is
being given a modern makeover.
Nancy Margried of Batik Fractal
uses computer software to turn
mathematical formulae into batikstyle designs, which are applied
to clothing, furniture and even
Daihatsu cars, marrying art and
science, tradition and modernity.
While tradition and innovation
don’t immediately sound like the
easiest of bedfellows, this powerful
set of examples demonstrates that
embracing the inherent cultural
tensions that permeate present-day
Indonesia can prove to be powerful
and captivating.
Tradition and modernity are but one
example of the many tensions that
exist in Indonesia. Brands exploring
their tensity should consider their
strengths – and their vulnerabilities.
Understand what people love about
your brand, and what they don’t.
Look for qualities that go against
expectations of the category. Don’t
be afraid of a bit of contradiction.
Find your brand’s tensity, then run
with it.
133
Brand Building DIVING INTO DIGITAL
SECTION 04
BRAND BUILDING
DO NOT
ENTER
WITHOUT
AN APPETITE
FOR RISK
A wait-and-see
approach to digital
means missing the boat
MEC is the fastest growing media agency in Indonesia with top accolades
from RECMA (Qualitative Ranking), R3 (New Business League) and Campaign
Asia (AOY - Bronze). MEC specializes in Integrated Media Planning & Buying,
Data, Analytics and Performance Marketing.
Some of the biggest marketers in the
country have shown they understand
this opportunity, with big investment
in testing and innovating their digital
communications. For brands yet to
board this train, there is still time. This
journey is a long and winding one,
with a new turn at every mile.
Manoj Damodaran
Head of Digital
MEC
[email protected]
More than 100
million Indonesians
will be online by the
end of 2016. That’s
the equivalent of a
nation of connected
individuals that’s 1.5
times the population
of Germany or the
United Kingdom,
and three times the
population of Canada.
Among this vast number of people,
60 percent will be between the ages
of 20 and 44, a highly attractive
audience for marketers given their
preference for branded products
and ability to buy them; a further 21
percent will be teenagers, a huge
pool of people who will soon be in
the market for branded goods. In this
digital Indonesia, 86 percent of people
will own a smartphone, and for 70
percent of them, this will be their
primary connection to the internet,
a device they will spend an average
of five hours a day using online. This
vision of the not-too-distant future,
built with data from eMarketer and
the national web industry body APJII,
shows the scale and potential for
digital marketing in Indonesia.
It is important that brands don’t
wait for the ‘right’ time to move into
digital – the day when the ideal way
of managing this ecosystem is clear.
Many a digital guru, platform and
media vendor is searching for these
answers, but the book setting out the
perfect way to manage brands online
is yet to hit the shelves. The fact is that
digital media is so fast-changing, the
search for a ‘right’ way is bound to be
elusive; what works today will need
adapting tomorrow. Success in digital
media is more about a mindset than
an ideal structure.
In Indonesia, AXA invests 50 percent
of its total advertising spend in digital.
This didn’t happen overnight. The
insurance brand has taken gradual
steps towards becoming a digital
business, through the launch of online
services and, in tandem, increasing its
online communications budget.
To shift a large part of your marketing
budget to digital is like moving
your personal savings out of a bank
account and into a high-risk, highreturn investment instrument. Just
as advice for novice investors would
be to start early, diversify, monitor
constantly and take calculated and
informed risks, the same applies to
digital. This is not a ‘set and forget’
business; it takes constant review and
adaptation – and acceptance that
there is always a risk.
General Electric, who spend over
40 percent of their global marketing
budgets in digital, understand the
need to experiment, constantly testing
and adjusting. GE now produces so
much digital content that they call
themselves a ‘digital factory’. When
Instagram came in the fray, GE
was there, testing. It now has more
than 180,000 Instagram followers.
As CMO Beth Comstock has said:
“Instagram is a way to go into our
factories and get shots you wouldn't
normally see. We're targeting the
inner geek in everyone. Most people
want to know why things work.”
For brands yet to make such a giant
leap into digital, here are three pieces
of advice for the year ahead:
DON’T COMPARE DIGITAL
WITH OTHER MEDIA
This would be like comparing returns
from a low-interest savings account
with investment in the stock market.
Both are important to a brand
achieving a balanced portfolio, and
each can energize the other. This is
not about choosing ‘new’ over ‘old’.
UNDERSTAND MEASUREMENT
Digital marketing covers an extremely
diverse and complex range of
products and approaches, and
each requires a different method of
benchmarking and measuring. Digital
measurement is real, transparent and
in real time; brands need to be sure
they are tracking the indicators that
really matter to their business.
DIGITAL WILL NOT SOLVE ALL
MARKETING PROBLEMS
If it could, TV advertising would
already have been killed off.
Leverage digital for its strengths.
Don’t try to make it do the work of
television – it won’t. Identify exactly
what you want digital to do for your
brand – perhaps it’s about providing
convenience, or entertainment
or advice. Let your brand stand
for something in your consumers’
digital lives.
www.mecglobal.com
134
135
SINCE THE 1990S, THE ECONOM Y H A S BEEN R EBA L A NCING
S M A L L B U S I N E S S E S H AV E F L O U R I S H E D
SECTION
RESOURCES
Resources BRANDZ™ METHODOLOGY
SECTION 05
RESOURCES
BRANDZ™ BRAND VALUATION METHODOLOGY
Introduction
The brands that appear in this
report are the most valuable in
Indonesia. They were selected
for inclusion in the BrandZ™ Top
50 Most Valuable Indonesian
Brands based on the unique and
objective BrandZ™ brand valuation
methodology that combines
extensive and on-going consumer
research with rigorous
financial analysis.
The BrandZ™ valuation methodology
can be uniquely distinguished from its
competitors by the way we obtain consumer
viewpoints. We conduct worldwide, ongoing, in-depth quantitative consumer
research, and build up a global picture of
brands on a category-by-category and
market-by-market basis.
Globally, our research covers three million
consumers and more than 100,000 different
brands in over 50 markets. This intensive, inmarket consumer research differentiates the
BrandZ™ methodology from competitors
that rely only on a panel of 'experts',
or purely on financial and market
desktop research.
The Valuation Process
Before reviewing the details of this
methodology, consider these three
fundamental questions: why is brand
important; why is brand valuation important;
and what makes BrandZ™ the definitive
brand valuation tool?
Importance of brand
Brands embody a core promise of values
and benefits consistently delivered. Brands
provide clarity and guidance for choices
made by companies, consumers, investors
and others stakeholders. Brands provide the
signposts we need to navigate the consumer
and B2B landscapes.
At the heart of a brand’s value is its ability to
appeal to relevant customers and potential
customers. BrandZ™ uniquely measures
this appeal and validates it against actual
sales performance. Brands that succeed in
creating the greatest attraction power are
those that are Meaningful, Different and
Salient.
Importance of
brand valuation
Brand valuation is a metric that quantifies
the worth of these powerful but intangible
corporate assets. It enables brand owners,
the investment community and others to
evaluate and compare brands and make
faster and better-informed decisions.
Distinction of BrandZ™
BrandZ™ is the only brand valuation tool
that peels away all of the financial and other
components of brand value and gets to the
core – how much brand alone contributes
to corporate value. This core, what we call
Brand Contribution, differentiates BrandZ™.
Step 1: Calculating
Financial Value
Part A
We start with the corporation. In some
cases, a corporation owns only one brand.
All Corporate Earnings come from that
brand. In other cases, a corporation owns
many brands. And we need to apportion
the earnings of the corporation across a
portfolio of brands.
To make sure we attribute the correct
portion of Corporate Earnings to each brand,
we analyze financial information from annual
reports and other sources, such as Kantar
Retail. This analysis yields a metric we call
the Attribution Rate.
We multiply Corporate Earnings by the
Attribution Rate to arrive at Branded
Earnings, the amount of Corporate Earnings
attributed to a particular brand. If the
Attribution Rate of a brand is 50 percent, for
example, then half the Corporate Earnings
are identified as coming from that brand.
Part B
What happened in the past – or even what’s
happening today – is less important than
prospects for future earnings. Predicting
future earnings requires adding another
component to our BrandZ™ formula.
This component assesses future earnings
140
prospects as a multiple of current earnings.
We call this component the Brand Multiple.
It’s similar to the calculation used by
financial analysts to determine the market
value of stocks (Example: 6X earnings or
12X earnings). Information supplied by
Bloomberg data helps us calculate a Brand
Multiple. We take the Branded Earnings and
multiply that number by the Brand Multiple
to arrive at what we call Financial Value.
Step 2: Calculating
Brand Contribution
So now we have got from the total value
of the corporation to the part that is the
branded value of the business. But this
branded business value is still not quite
the core that we are after. To arrive at
Brand Value, we need to peel away a few
more layers, such as the in-market and
logistical factors that influence the value of
the branded business, for example: price,
availability and distribution.
What we are after is the value of the
intangible asset of the brand itself that
exists in the minds of consumers. That
means we have to assess the ability of brand
associations in consumers’ minds to deliver
sales by predisposing consumers to choose
the brand or pay more for it.
We focus on the three aspects of brands
that we know make people buy more and
pay more for brands: being Meaningful
(a combination of emotional and rational
affinity), being Different (or at least feeling
that way to consumers), and being Salient
(coming to mind quickly and easily as the
answer when people are making category
purchases).
We identify the purchase volume and any
extra price premium delivered by these brand
associations. We call this unique role played
by brand, Brand Contribution.
Here’s what makes BrandZ™ so unique
and important. BrandZ™ is the only brand
valuation methodology that obtains
this customer viewpoint by conducting
worldwide on-going, in-depth quantitative
consumer research, online and face-to-face,
building up a global picture of brands on a
category-by-category and market-by-market
basis. Our research now covers over three
million consumers and more than 100,000
different brands in over 50 markets.
Step 3: Calculating
Brand Value
Now we take the Financial Value and multiply
it by Brand Contribution, which is expressed
as a percentage of Financial Value. The
result is Brand Value. Brand Value is the
dollar amount a brand contributes to the
overall value of a corporation. Isolating and
measuring this intangible asset reveals an
additional source of shareholder value that
otherwise would not exist.
141
Resources BRANDZ™ METHODOLOGY
SECTION 05
RESOURCES
BRANDZ™ BRAND VALUATION METHODOLOGY
Why BrandZ™ is the definitive
Brand Valuation Methodology
All brand valuation methodologies
are similar – up to a point.
All methodologies use financial
research and sophisticated
mathematical formulae to
calculate current and future
earnings that can be attributed
directly to a brand rather than
to the corporation. This exercise
produces an important but
incomplete picture.
What’s missing? The picture
of the brand at this point lacks
input from the people whose
opinions are most important
– the consumer. This is where
the BrandZ™ methodology
and the methodologies of our
competitors part company.
142
Eligibility criteria and definitions
Eligibility
How does the competition
determine the consumer view?
The brands ranked in the BrandZ™ Top 50
Most Valuable Indonesian Brands 2015 report
meet one of these two eligibility criteria:
Interbrand derives the consumer point of view from panels of experts who
contribute their opinions. The Brand Finance methodology employs a
complicated accounting method called Royalty Relief Valuation.
• The brand was originally created by an
Indonesian enterprise and is owned by
an enterprise listed on a credible stock
exchange; or
Why is the BrandZ™
methodology superior?
• The brand is owned by an enterprise listed
on the Indonesia Stock Exchange.
BrandZ™ goes much further and is more relevant. Once we have the
important, but incomplete, financial picture of the brand, we communicate
with consumers, people who are actually paying for brands every day,
constantly. Our on-going, in-depth quantitative research includes three million
consumers and more than 100,000 brands in over 50 markets worldwide.
What’s the BrandZ™ benefit?
Definitions
Brand Contribution
Brand Contribution is a BrandZ™
measurement of a brand’s uniqueness in
the mind of the consumer and the impact
of brand alone, without any other factors,
on future earnings. Brand Contribution is
expressed on a scale of one to five, with five
being the highest.
Brand Power
Brand Power is a BrandZ™ measurement of a
brand’s competitive position in its category. It
roughly correlates with volume share. Brand
Power is a BrandZ™ component of brand
equity, which is the consumer predisposition
to choose one brand over another.
Meaningful,
Different, Salient
MEANINGFUL
Consumers feel an affinity for the brand or
think it meets their needs. In any category,
these brands appeal more, generate greater
“love” and meet the individual’s expectations
and needs.
DIFFERENT
The brand feels different to other brands in
the category. They are unique in a positive
way and “set the trends” for the category,
staying ahead of the curve for the benefit of
the consumer.
SALIENT
The brand comes to mind quickly and
spontaneously when activated by ideas
related to category purchase. The brand of
choice for key needs.
The BrandZ™ methodology produces important benefits for two broad
audiences.
•
Members of the financial community, including analysts, shareholders,
investors and C-suite, depend on BrandZ™ for the most reliable and
accurate brand value information available.
•
Brand owners turn to BrandZ™ to more deeply understand the causal links
between brand strength, sales and profits, and to translate those insights
into strategies for building brand equity.
143
Resources BRANDZ™ PUBLICATIONS
SECTION 05
RESOURCES
BRANDZ™: THE ULTIMATE RESOURCE
FOR BRAND KNOWLEDGE AND INSIGHT
BRANDZ™
ON THE MOVE
Reports, apps and iPad
magazines powered by BrandZ™
BrandZ™ Top 100 Most
Valuable Chinese Brands
2015
The report profiles Chinese brands,
outlines major trends driving brand
growth and includes commentary
on the growing influence of Chinese
brands at home and abroad.
BrandZ™ Top 50 Most Valuable
Latin American Brands 2014
Valuable Indian Brands 2015
The report profiles the most valuable
brands of Argentina, Brazil, Chile,
Colombia, Mexico and Peru and explores
the socioeconomic context for brand
growth in the region.
This report analyzes the success of
Indian brands across 13 categories,
examines the dynamics reshaping the
Indian market and offers insights for
building valuable brands.
The Power and Potential of
The Chinese Dream
The Chinese New Year in
Next Growth Cities
Using research and case studies, the
report examines the shopping attitudes
and habits of China’s rising middle
class and explores opportunities for
brands in many categories.
“The Power and Potential of The Chinese
Dream” is rich with knowledge and insight,
and forms part of a growing library of
WPP reports about China. It explores the
meaning and significance of the “Chinese
Dream” for Chinese consumers as well as
its potential impact on brands.
The report explores how Chinese families
celebrate this ancient festival and describes
how the holiday unlocks year-round
opportunities for brands and retailers,
especially in China’s lower tier cities.
144
ValueD
Engaging Consumers in
the Post-Recession World
Balancing Desire and
Price for Brand Success
Trust is no longer enough.
Strong brands inspire both
Trust (belief in the brand’s
promise developed over time)
and Recommendation (current
confirmation of that promise).
This combination of Trust plus
Recommendation results in a
new metric called TrustR.
Desire is primary. High Desire
enables Price flexibility. A new
metric, Value-D, measures the
gap between the consumer’s
Desire for a brand and the
consumer’s perception of the
brand’s Price. By quantifying
this gap, Value-D helps brands
optimize their profit and
market-positioning potential.
RepZ
CharacterZ
Maximising Brand
and Corporate Integrity
Brand personality
analysis deepens brand
understanding
To download the apps for the BrandZ™
rankings go to www.BrandZ.com/mobile
(for iPhone and Android). BrandZ™ is
the world’s largest and most reliable
customer-focused source of brand equity
knowledge and insight.
To learn more about BrandZ™ data or
studies, or view one of our industry insight
videos, please visit www.BrandZ.com, or
contact any WPP company.
For the iPad magazine, search
BrandZ Latin America on iTunes.
The Chinese Golden Weeks in
Fast Growth Cities
For the iPad magazine, search Golden
Weeks on iTunes.
TrustR
Get the BrandZ™ Top 100 Most
Valuable Global Brands, Chinese
Top 100, Latin American Top
50, Indian Top 50 and many
more insightful reports on your
smartphone or tablet.
For the iPad magazine search for Chinese
New Year on iTunes
Major brands are especially
vulnerable to unforeseen events
that can quickly threaten the
equity cultivated over a long
period of time. But those brands
with a better reputation are
much more resilient. Four key
factors drive Reputation: Success,
Fairness, Responsibility and
Trust. Find out how your brand
performs.
Need an interesting and
stimulating way to engage with
your clients? Want to impress
them with your understanding of
their brand? A new and improved
CharacterZ can help! It is a fun
visual analysis, underpinned by the
power of BrandZ™, which allows
detailed understanding of your
brand’s personality.
Valuable Global Brands 2015
This is the definitive global brand valuation
study, analysing key trends driving the
world’s largest brands, exclusive industry
insights, thought leadership and a
retrospective look at 10 years of BrandZ™.
145
B R A N D S N E E D T O B A L A N C E R E F L E C T I N G C U LT U R A L VA L U E S
W I T H B E I N G S U F F I C I E N T LY C R E AT I V E T O S TA N D O U T
Resources WPP COMPANY CONTRIBUTORS
SECTION 05
RESOURCES
WPP COMPANY CONTRIBUTORS
These companies contributed knowledge,
expertise and perspective to the report
Bates CHI&Partners is one of Asia's newest
start-ups - a global network of creative
entrepreneurs - with the desire to compete
less and collaborate more through an open
source model that brings together bestin-class talent from within and outside the
industry, to offer innovative solutions to clients.
Launched on February 28th, 2013, this
partnership brings together Bates - an Asia
top 10 agency by revenue with 14 offices
in nine countries across Asia - and CHI, the
UK's most awarded independent agency at
Cannes. With 16 offices worldwide and a
creative corridor from Shanghai to London
and New York, Bates CHI&Partners fuel
growth through ‘unexpected’ collaborations.
www.bateschi.com
Shubho Sarkar
CEO Southeast Asia
[email protected]
Brand Union is a global brand agency with
deep expertise in brand strategy, design,
interaction, brand management, employee
engagement and culture change. Globally
we serve every major market with over
500 people across 25 offices. In Indonesia
we have a full service team of designers,
strategists and project managers with
experience of working across Indonesia’s
most challenging and fast-growing
categories such as telecoms, technology,
real estate, financial services and FMCG.
Driven by our belief that ‘the experience of
the brand is the brand’ and guided by our
proprietary Brand Experience Framework™
methodology, we are partners in creating
brand-led business growth by delivering
brand experiences that are brilliantly
designed and beautifully connected.
www.brandunion.com
Bayu Asmara
Managing Director
[email protected]
150
Burson-Marsteller, established in 1953,
is a leading global public relations and
communications firm. It provides clients
with strategic thinking and program
execution across a full range of public
relations, public affairs, reputation and
crisis management, advertising and digital
strategies. The firm’s seamless worldwide
network consists of 73 offices and 85
affiliate offices, together operating in 110
countries across six continents. BursonMarsteller Indonesia has capabilities in:
consumer and brand marketing, corporate
and financial communications, crisis and
issues management, digital, public affairs, and
technology communications.
www.bm.com
Mayang Schreiber
CEO & Market Leader
[email protected]
Cohn & Wolfe, a global communications
agency, builds brands and corporate
reputations through an uncompromising
commitment to creativity. The agency’s
strategic approach unearths fresh, relevant
insights leading to communications solutions
that deliver measurable business success.
Over its 40-year history, Cohn & Wolfe’s
brand marketing work and world-class digital
media campaigns have attracted top brands
around the world, winning awards at the
Cannes Health Lions, the Global SABREs and
the Global PRWeek Awards. With a creative
network of more than 1,200 employees in
over 50 offices across North America, EMEA
and Asia, the agency has been named a
“Best Place to Work” by PRWeek, Crain’s NY,
Advertising Age and PRNews.
www.cohnwolfe.com
Rachna Sharma
Country Head
[email protected]
Geometry Global is the world’s largest and
most geographically complete activation
network. It provides marketers with unique
solutions across a range of disciplines including
Shopper, Promotional, Experiential, Trade
and Digital Marketing. With our proprietary
planning process, LeonardoTM, we drill down
into the ‘Purchase Decision Journey’ and dive
deep into data to analyze behavior. From there,
we unearth insights and apply pitch-perfect
creativity to drive desired behavior change.
This unique approach results in more people,
buying more of our clients' brands, more often.
We call this Precision Activation.
We are just two years old and we are the most
awarded activation agency network. Our
work has won both creative and effectiveness
awards. With a team of over 50 people and
a passion to deliver 'Precision Activation’,
Geometry Global Indonesia is geared up to
deliver solutions for the ever-growing needs of
the clients in Indonesia.
GroupM is the leading global media
investment management operation. It
serves as the parent company to WPP
media agencies including MAXUS,
Mediacom, MEC and Mindshare.
Our primary purpose is to maximise
the performance of WPP’s media
communications agencies on behalf of
our clients, our shareholders and our
people by operating as a parent and
collaborator in performance-enhancing
activities such as trading, content creation,
sports, digital, finance, proprietary tool
development and other business-critical
capabilities. The agencies that comprise
GroupM are all global operations in their
own right with leading market positions.
The focus of GroupM is the intelligent
application of physical and intellectual
scale to benefit trading, innovation, and
new communication services, to bring
competitive advantage to our clients and
our companies.
www.geometry.com
www.groupm.com Samir Gupte Managing Director
[email protected]
Ed Thesiger
CEO [email protected]
Grey Group ranks among the largest global
communications companies. Under the
banner of "Grey Famously Effective Since
1917," we continue to break new ground in
brand experience across every platform and
create lasting consumer connections. The
agency serves a blue-chip client roster of
many of the world’s best known companies:
Procter & Gamble, GlaxoSmithKline, Honda,
Mitsubishi, BCA, Orang Tua Group to name
a few. We offer complete service covering
advertising, activation, shopper marketing and
digital.
www.grey.com
Agus Sudradjat
Chairman & CEO
[email protected]
J. Walter Thompson Worldwide, the world’s
best-known marketing communications
brand, has been creating pioneering solutions
that build enduring brands and business for
more than 150 years. Headquartered in New
York, J. Walter Thompson is a true global
network with more than 200 offices in over 90
countries, employing nearly 10,000 marketing
professionals. The agency consistently ranks
among the top networks in the world and
continues a dominant presence in the industry
by staying on the leading edge—from hiring the
industry's first female copywriter to developing
award-winning branded content today. For
more information, follow us @JWT_Worldwide.
www.jwt.com
DD "Lulut" Asmoro
CEO
[email protected]
Kantar Worldpanel is the world leader in
consumer knowledge and insights based
on continuous consumer panels. Its High
Definition Inspiration™ approach combines
market monitoring, advanced analytics
and tailored market research solutions that
inspire successful actions by its clients.
Kantar Worldpanel’s expertise about what
people buy or use - and why - is recognized
by brand owners, retailers, market analysts
and government organizations globally.
With over 60 years’ experience, a team of
3,500, and services covering 60 countries
directly or through partners, Kantar
Worldpanel helps brands grow in fields
as diverse as FMCG, impulse products,
fashion, baby, telecommunications and
entertainment, among many others.
www.kantarworldpanel.com/id
Soon Lee Lim
General Manager
[email protected]
Kinetic is the global leader in planning and
buying Out of Home media and its mission
is to pull forward, and make real, the future
possibilities of the world of out of home
communications.
Kinetic is a WPP company and part of the
tenthavenue performance marketing division.
Kinetic’s expertise and insight helps deliver
solutions for clients that achieve ambitious
brand and marketing goals.
In addition to its core business, Kinetic
provides wide-ranging specialist expertise
through its complementary service divisions
including Aureus, Aviator, Kinetic Active,
Kinetic Futures, Meta, Zone and Hi Rezz.
Kinetic employs over 900 professionals across
42 offices worldwide.
www.apac.kineticww.com
Gregg Ainsworth
Technical Advisor
[email protected]
Landor creates some of the world’s
strongest and most agile brands—brands
that thrive on change. As new audiences
and new technology generate new
demands, disruption has become the norm
and the pace of change is accelerating
every day. Agile brands seize these
opportunities to sharpen their strategies
and transform their markets. Walter Landor
wrote the book on branding, and he did
it from the deck of a ferryboat named
the Klamath. Like our clients, he found
opportunity where others saw adversity.
From Barclays to BMW and Tide to Taj,
Landor helps brands stand out and stand for
something—while never standing still.
www.landor.com
Thomas Sutton
Technical Advisor
[email protected]
151
SECTION 05
RESOURCES
Maxus is a global network of local
media agencies with services including
communications strategy, media
planning and buying, digital marketing,
social media strategy, SEO, PPC,
direct-response media, data analytics,
and marketing ROI evaluation.
Our team of around 2,500 people
across 55 markets worldwide, work for
some of the world’s most well-known
advertisers, and Maxus has been
the fastest growing agency network
over the last 5 years. In Indonesia
we are ranked No. 4 and work with
some of the leading global and local
advertisers.
www.maxusglobal.com Partha Kabi Country Head
[email protected]
MediaCom is one of the world's
leading media agencies. MediaCom is a
people-driven agency; our People First
philosophy makes us different from other
media agencies. It means we focus on
people: consumers, clients and staff. It
means we look at all areas of consumers'
lives, understanding the connections and
implications of their world and how they
as individuals interact with clients' brands.
Our services include media planning and
buying, interactive planning and buying
(including digital, direct and search), ROI
research (encompassing direct response
media), online/search engine marketing,
consumer insights, media strategy and
branded content. Specialist divisions
include MediaCom Interaction and
MediaCom Business Science.
www.mediacom.com
Anita Mookerjee Managing Director
[email protected]
MEC is the fastest-growing media agency
in Indonesia and ranked #1 in RECMA
Qualitative Ranking 2015, #1 in R3 New
Business League 2014 and received a
Bronze Award for Campaign Asia Agency
of the Year 2014. The company specializes
in Integrated Media Planning & Buying ,
Brand Partnerships, Data, Analytics and
Performance Marketing. #dontjustlivethrive.
www.mecglobal.com
Ajay Gupte Managing Director
[email protected]
Millward Brown is a leading global
research agency specializing in advertising
effectiveness, strategic communication,
media and brand equity research. Millward
Brown helps clients grow great brands
through comprehensive research-based
qualitative and quantitative solutions.
Specialist global practices include Millward
Brown Digital (a leader in digital effectiveness
and intelligence), Firefly Millward Brown (our
global qualitative network), a neuroscience
practice (using neuroscience to optimize
the value of traditional research techniques),
and Millward Brown Vermeer (a strategy
consultancy helping companies maximize
financial returns on brand and marketing
investments). Millward Brown operates in
more than 55 countries and is part of Kantar,
WPP’s data investment management division.
Mindshare is a global media agency network
with billings in excess of US$31.4 billion
(source: RECMA). The network consists of
more than 7,000 employees, in 116 offices
across 86 countries spread throughout North
America, Latin America, Europe, Middle
East, Africa and Asia Pacific. Each office is
dedicated to forging competitive marketing
advantage for businesses and their brands
based on the values of speed, teamwork and
provocation. Mindshare is part of GroupM,
which oversees the media investment
management sector for WPP, the world’s
leading communications services group.
www.mindshareworld.com
Himanshu Shekhar CEO, South East Asia
[email protected] www.ogilvy.com www.millwardbrown.com
Katryna Mojica
CEO
[email protected]
Mark Chamberlain
Managing Director
[email protected]
Firefly Millward Brown is one of the largest
global qualitative research practices. We use
our in-depth understanding of marketing
and consumer behavior to identify true
brand opportunities that inspire strategic
recommendations to drive brand success.
Brands benefit from Firefly’s cultural
understanding of the 40 local markets we
serve and the regional and global context we
provide.
We are passionate about people and how they
interface with brands. It is the pursuit of this
interaction that allows us to deliver illuminating
insights for our clients’ businesses.
www.fireflymb.com
Ogilvy & Mather is one of the largest
marketing communications companies in
the world. It was named the Cannes Lions
Network of the Year for four consecutive
years, 2012, 2013, 2014 and 2015; and the
EFFIEs World's Most Effective Agency
Network for two consecutive years 2012
and 2013. The company is comprised of
industry leading units in the following
disciplines: advertising; public relations
and public affairs; branding and identity;
shopper and retail marketing; health care
communications; direct, digital, promotion
and relationship marketing; consulting,
research and analytics; branded content
and entertainment; and specialist
communications. O&M services Fortune
Global 500 companies as well as local
businesses through its network of more
than 500 offices in 126 countries.
We are a group of makers, believers, and
make-believers. Mirum is a new digital agency
created with a pioneering spirit. We are in 17
countries, 40 offices and 2,200 professionals,
built by bringing together successful, regional
companies that have a deep understanding
of local market needs. Our principles are
deeply rooted in innovation, design, data,
marketing and technology to drive business
transformation in a world of constantly
evolving behaviors and expectations.
Mirum’s common values center around
entrepreneurship, passion for technology and
creativity. Our desire is to build meaningful
brand-consumer relationships by delivering
real value and seamless experiences. Our goal
is simply to make something exceptional and
achieve results that amaze us all.
Ogilvy Public Relations (Ogilvy PR) is a global,
multi-disciplinary communications leader
operating in more than 85 offices across six
continents. In 2015, for the fourth consecutive
year, Ogilvy was named Cannes Lions Network
of the Year (also winning three Bronze Lions
at Cannes in 2015) and Most Effective Agency
Network by the Effie Global Effectiveness
Index. Ogilvy was also named Best Digital
Consultancy in the World, Most Creative Agency
and Best South-East Agency by the Holmes
Report. Ogilvy PR integrates deeply with all
Ogilvy & Mather disciplines (advertising, direct
marketing, activation, promotional, digital and
entertainment) through the proprietary Ogilvy
Fusion™ approach to delivering comprehensive
business solutions through content creation,
community building, and communications with
measurable results.
www.ogilvypr.com
Marianne Admardatine
Managing Director of Ogilvy PR
and Pulse Communications
Head of Corporate Communications and
New Business for Ogilvy & Mather Indonesia
[email protected]
The Partners is one of the most
consistently awarded brand consultancies
in the world delivering brand strategy,
identity and storytelling for some of the
world’s most famous brands for over 30
years. From their studios in Singapore,
London and New York, The Partners
have worked with clients like Deloitte,
XL Telecom, AirAsia, NET TV, McKinsey,
Colgate-Palmolive, Discovery Channel,
BBC and Toyota.
www.mirumagency.com
www.the-partners.com
Nanda Ivens
CEO APAC
[email protected]
Anant Deboor
Managing Director
[email protected]
Lara-Lee Burn
Country Head
[email protected]
152
153
SECTION 05
RESOURCES
The BrandZ™ brand
valuation contact details
Soho Square is part of the Ogilvy group
and a member of the WPP group of
agencies. With offices in 17 countries in
the APAC region,Soho Square helps create
communication solutions for leading
multinational and local clients. Each office is
a link and leverages the best resources across
the Ogilvy and WPP worldwide network.
An agency without silos,where integration
is core to our structure and philosophy; we
work closely with our clients to get to the
heart of their business ambition and offer
coherent, multi-discipline solutions. From
the latest in social marketing innovation to
traditional media,our work is based on driving
creative excellence that results in delivering
commercial effectiveness.
www.sohosq.com
Indrajeet Mookherjee
Managing Director
[email protected]
TNS advises clients on specific growth
strategies around new market entry,
innovation, brand switching and customer
strategies, based on long-established
expertise and market-leading solutions. With a
presence in over 80 countries, TNS has more
conversations with the world’s consumers
than anyone else and understands individual
human behaviors and attitudes across every
cultural, economic and political region of the
world. TNS provide actionable insights that
help companies make impactful marketing
decisions that drive growth.
www.tnsglobal.com
Suresh Subramanian
Managing Director
[email protected]
154
VML, one of the world's leading digital
marketing agencies, delivers creative
solutions at the intersection of marketing
and technology. Founded in 1992 and
headquartered in Kansas City, Missouri, VML
joined the world’s largest communications
services group WPP in 2001. VML has
more than 2,300 employees with principal
offices in 26 locations across six continents.
Headquartered regionally in Singapore
and established in Indonesia in 2013, VML
Indonesia has quickly grown its client roster
to include key brands such as Aqua, Mizone,
Telkom Indonesia, Adidas and Prudential. VML
delivers best-in-class digital solutions ranging
from leading digital transformation initiatives
for key partners all the way to executing multiplatform digital, social and mobile campaigns.
www.vml.com
Keith Timimi Chairman VML Qais
[email protected]
Y&R is one of the leading global marketing
communications companies, comprising
the iconic Y&R Advertising agency; VML, one
of the world’s most highly regarded digital
agencies; premier mobile marketing company
iconmobile; shopper marketing and retail
network Labstore; and Bravo, our integrated
solutions agency for multicultural marketplaces.
Y&R Advertising has 189 offices in 93 countries
around the world, with clients that include
Campbell’s Soup Company, Colgate-Palmolive,
Danone, Dell, Xerox, GAP, Land Rover, Lloyds
and Telefónica, among many others.
www.yr.com
Matthew Collier Group CEO
[email protected] BrandZ™ Top 50 Most Valuable Indonesian Brands 2015
WPP is the world’s largest
communications services group with
billings in 2013 of $72.3 billion and
revenues of $17.3 billion. Through
its operating companies, the Group
provides a comprehensive range of
advertising and marketing services
including advertising and media
investment management; data
investment management; public
relations and public affairs; branding and
identity; healthcare communications;
direct, digital, promotion and
relationship marketing and specialist
communications. The company
employs over 179,000 people (including
associates) in over 3,000 offices across
111 countries. For more information,
visit www.wpp.com. WPP was named
Holding Company of the Year at
the 2015 Cannes Lions International
Festival of Creativity for the fourth year
running. WPP was also named, for
the third consecutive year, the World’s
Most Effective Holding Company in
the 2014 Effie Effectiveness Index,
which recognizes the effectiveness of
marketing communications.
For more information,
visit www.wpp.com
The brand valuations in the BrandZ™ Top 50
Most Valuable Indonesian Brands are produced
by Millward Brown using market data from
Kantar Worldpanel, along with Bloomberg.
The consumer viewpoint is derived from the BrandZ™
database. Established in 1998 and constantly updated, this
database of brand analytics and equity is the world’s largest,
containing over three million consumer interviews about
more than 100,000 different brands in over 50 markets.
For further information about BrandZ™
contact any WPP Group company or:
Doreen Wang
Global Head of BrandZ™
Millward Brown
+1 212 548 7231
[email protected]
Martin Guerrieria
Global BrandZ™ Research Director
Millward Brown
+44 (0) 207 126 5073
[email protected]
Elspeth Cheung
Global BrandZ™ Valuation Director
Millward Brown
+44 (0) 207 126 5174
[email protected]
in Indonesia
We help build valuable brands
Our WPP companies have been engaged in
Indonesia since 1999. Today, 1500 people
including associates work in 35 companies and
43 offices across Indonesia.
They provide the advertising, marketing, insight,
media, digital, retail, shopper marketing, PR,
knowledge, insight, and implementation
necessary to understand Indonesia and build
and sustain brand value. To learn more about
how to apply this expertise to benefit your brand,
please contact any of the WPP companies that
contributed to this report or contact:
Ranjana Singh
WPP Country Head, Indonesia
[email protected]
Belinda Rabano
Head of Corporate Communications,
WPP Asia Pacific
[email protected]
For further information about WPP companies
worldwide, please visit:
www.wpp.com/wpp/companies
or contact:
David Roth
www.brandz.com
CEO The Store, WPP EMEA and Asia
[email protected]
Bloomberg
The Bloomberg Professional service is the source of realtime and historical financial news and information for
central banks, investment institutions, commercial banks,
government offices and agencies, law firms, corporations
and news organizations in over 150 countries. (For more
information, please visit www.bloomberg.com)
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O N LY 3 6 P E R C E N T O F A D U LT S H AV E A B A N K AC C O U N T
Resources BRAND EXPERTS
SECTION 05
RESOURCES
BRAND EXPERTS WHO CONTRIBUTED TO THE REPORT
These individuals from WPP companies provided additional
thought leadership, research, analysis and insight to the report
Gregg Ainsworth
Kinetic
Nadya Ardianti
Kantar Worldpanel
Arindam Bhattacharyya
MediaCom
Lara-Lee Burn
Firefly Millward Brown
Kris Constantoulas
Y&R
Aparna Sinha
TNS
Daniel B. Siswandi
J. Walter Thompson
Suresh Subramanian
TNS
Ruby Sudoyo
Ogilvy & Mather
Thomas Sutton
Landor
With thanks and appreciation to:
Marianne Admardatine, Ogilvy Public Relations
Dinar Ariefianto, Geometry Global
Assed Lussak, Ogilvy Public Relations
Widijastoro Nugroho, Mindshare
Manoj Damodaran
MEC
Vina Erwita
Millward Brown
Maneesheel Gautam MindShare
Samir Gupte Geometry Global
Lioni Halim
Millward Brown
Kennedy Joseph TNS
Soon Lee Lim
Kantar Worldpanel
Katryna Mojica
Ogilvy & Mather
Anita Devraj Mookerjee
MediaCom
Fanny Murhayati
Kantar Worldpanel
Emma Mussell
Millward Brown
Delia Nugraheni
Kantar Worldpanel
Avinash Pareek
Maxus
Anton Reyniers
Ogilvy & Mather
Hansal Savla
TNS
158
Denny Tanjung
Kantar Worldpanel
Ed Thesiger
GroupM
159
Resources BRANDZ™ INDONESIAN TOP 50 TEAM
SECTION 05
RESOURCES
BRANDZ™ INDONESIAN TOP 50 TEAM
These individuals created the report, providing valuations,
research, analysis and insight, editorial, photography,
production, marketing and communications
Aman Aggarwal
Amandine Bavent
Jo Bowman
Cecilie Østergren
David Roth
Amit Singh
Aman Aggarwal is Research Analyst
for BrandZ™ valuation at Millward
Brown. He is responsible for financial
analysis, performing valuations, brand
profiles research and commercial
validation for the BrandZ™ rankings.
Amandine Bavent is a BrandZ™ Valuation
Manager for Millward Brown. She
manages the brand valuation projects for
BrandZ™. Her role involves conducting
financial analysis, researching brands and
performing valuations.
A journalist for 20 years, Jo Bowman worked
for newspapers in Australia before moving
to Hong Kong to specialize in business
writing with a focus on Asian branding and
marketing. She has since worked in Italy and
the UK, as a writer and editorial consultant.
Cecilie Østergren is a professional photographer
based in Denmark, and has worked closely with
WPP agencies since 2009. Cecilie specializes in
documentary, consumer insight and portraits.
She has travelled extensively in China, Brazil and
other locations to photograph images for the
BrandZ™ reports. www.ostergren.dk
David Roth is the CEO of the Store WPP for
Europe, the Middle East, Africa and Asia,
and leads the BrandZ™ worldwide project.
Prior to joining WPP David was main board
Director of the international retailer B&Q.
Amit Singh is a Senior Analyst for BrandZ™
at Millward Brown. He is responsible for
performing valuations, financial analysis
and brand profiles research for the
BrandZ™ rankings and other ad hoc brand
valuation projects.
Mark Chamberlain
Elspeth Cheung
Miquet Humphryes
Karina Soedjatmiko
Raam Tarat
Anggra Tidayoh
Mark Chamberlain is Managing Director
of Millward Brown Indonesia. He is closely
involved in the report and launch of
BrandZ™ Indonesia.
Elspeth Cheung is the Global BrandZ™
Valuation Director for Millward Brown.
She is responsible for valuation, analysis,
client management and external
communication for the BrandZ™ rankings
and other ad hoc brand valuation projects.
Miquet Humphryes is Director of Global
Corporate Marketing at Millward Brown. She
is responsible for overseeing marketing and
communications for the Top 100 ranking.
Karina Soedjatmiko is Senior Research
Executive at Millward Brown Indonesia. She
is involved in brand research and category
analysis for BrandZ™ Indonesia.
Raam Tarat is Global Communications
and Marketing Manager at Millward Brown.
He project manages the production of
BrandZ™ global and country reports, as
well as marketing, communications and
social media for other BrandZ™ projects.
Anggra Tidayoh is Media & Digital
Associate Director at Millward Brown
Indonesia. She is involved in the BrandZ™
launch project management for
Indonesia.
Ben Marshall
Richard McLeod
Gaurav Mittal
Peter Walshe
Doreen Wang
Ben Marshall is Global Communications
and Marketing Assistant at Millward
Brown and assists with the marketing and
communications of the BrandZ™ projects.
Richard McLeod is Account Director
at Millward Brown Indonesia. He is
involved in the report analysis and
conceptualization of insights and key
takeaways for BrandZ™ Indonesia.
Gaurav Mittal is a Research Analyst of
BrandZ™ valuation at Millward Brown. He
is responsible for financial analysis, brand
profiles research and commercial validation
for the BrandZ™ rankings.
Peter Walshe is Global Strategy Director of
BrandZ™. He was involved in the creation
of this brand equity and insight tool 17 years
ago, and has contributed to all the valuation
studies and developed BrandZ™ metrics,
including CharacterZ, TrustR, and RepZ.
Doreen Wang is the Global Head of
BrandZ™, and a seasoned executive
with 15 years' experience in providing
outstanding market research and strategic
consulting for senior executives in Fortune
500 companies in both the US and China.
160
With thanks and appreciation to:
Tuhin Dasgupta, Dominic Harders,
Anthony Marris, Lynne Oxley and
Margarita Ylla
161
DI G I TA L I S C H A N G I N G T H E WAY CO N S U M E R S O B TA I N I N FO R M AT I O N
BU T T V R EM A INS THE DOMINA N T FORCE FOR R E ACH
Design Kay Blewett
Writing Jo Bowman
Photography Cecilie Østergren
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BrandZ™ Top 50 Most Valuable Indonesian Brands

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