Page 28 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

SECTION 01
INTRODUCTION
KEY TAKE AWAYS
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.
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BrandZTM Top 50 Most Valuable Indonesian Brands 2015
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 LinkTM 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
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.
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