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Indonesia 2015 | Overview | Key Lessons

1. To go with Categories and Brand value piece

Ways to win

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. Yet many Indonesian brands are yet to recognise 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?

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.

2. To go with Categories and brands piece

Ways to win

The value of being a trusted brand becomes clear when we analyse the brand value of the many financial services brands featuring in the Indonesia Top 50. Almost 90 percent of the banking sector’s brand value in the ranking is concentrated at the top, among just three brands, which are together worth US$24.4 billion. These three banks, BCA, BRI and Mandiri, far outperform other banks on measures of fairness, responsibility, and trust in the eyes of consumers. The potential for brands that build their reputation in these crucial areas is immediately clear in the banking sector, given that this is a market with more than 140 billion people without a bank account. But the lesson could equally apply to other service brands. Economic crises have repeatedly rocked this market, and consumers gravitate towards brands they feel they can trust. The scale of a business can reassure – while emphasising the long history, large presence, and popularity of a brand can engender trust. At a more personal level, ease and convenience of use win hearts and minds.

Theory in action

Top-ranked banking brand BCA strives to be one of the most accessible banks in Indonesia, with a wide network of ATMs. It also works to bring convenience to its customers, such as with the launch of Flazz BCA, the first pre-paid payment card of its kind in Indonesia, and pioneering mobile and online banking services. BrandZ analysis shows consumers regard BCA as an especially successful, fair and trustworthy brand. Its brand value is US$9.9 billion, and it is well placed to become the first Indonesian brand to make the Global Top 100.

3. To go with brand contribution piece

Ways to win

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 that connect 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 the 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 flavors, often in typically Indonesian flavors, and appeals to the masses with its highly emotional advertising.

4. To go with Brand Indonesia piece

Ways to win

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.

5. To go with media piece

Ways to win

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 multiscreening 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.