The view from Indonesia: Brand approaches must evolve beyond share of voice

As part of the Asia's Top 1000 Brands report, we asked experts from around the region to share in-country expertise on the factors driving branding in their markets. Anita Devraj Mookerjee, managing director, MediaCom Indonesia, shares the view from Indonesia. 

Indonesia has the fourth largest population in the world, attractive demographics, and a very strong investment climate and a stable political landscape. A total of 60 per cent of its residents are between 20 and 60 years old—almost twice the population of Vietnam and nearly three times that of South Korea. Moreover its economy is expected to grow at 6.5 per cent over the next five years.

All of these factors mean that the affluent and middle-class are growing at a tremendous rate, creating a hugely lucrative opportunity for brands. This rising proportion brings increased spending and buying power, making the country a hotspot for local and multinational corporations.

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Indonesia is a country where family, functionality and value are critical. Indulgences and high-involvement purchases are based on the functional benefits for the entire family. And, of course, even the most affluent love hunting for bargains and promotional offers.

The most popular car models in the country right now are Toyota’s Avanza and Kijang—cars for the entire family. Lifebuoys’ 'One soap for the entire family' slogan has also been a clear winner.

Most companies have always played the share-of-voice game, but now there seems to be a rising awareness for differentiation in the way they reach out to consumers. Major FMCG players like Procter & Gamble are now connecting with consumers on an emotional level through initiatives that are market relevant. P&G’s initiatives to help the recent flood victims in Jakarta by washing their dirty clothes (with Downy) at malls and outlets is a classic example of this.

Investments in digital, especially social media, are now turning into robust numbers. There is also a slow shift in shopping channels. Despite their current popularity, traditional retail formats are losing their charm slowly to modern retail. Ease of shopping, modernity and perception of better quality seem to be the most important reasons for this. As a result, there is an inherent need for companies to spruce up in-store executions and ramp up their distribution channels.

Anita Devraj Mookerjee

With the growing clutter in the media space, brands are finding it increasingly difficult to differentiate against competition. As a result, price wars have arisen. There is now a need for bigger and better engagement with brands’ core consumers. The growing advent of technology and social media is focusing efforts on connection initiatives rather than just branding initiatives.

Given the highly scattered nature of Indonesia, it is increasingly important for companies to decide on the level of reach they want to achieve and which locations to go after. The challenge here is for companies to rethink and reframe the way they operate and plan their go-to-market strategies in tier-one and tier-two locations. Marketers are now concentrating their efforts in winning in other markets in Java, ramping up distribution and investing in key account management.