The Business of Branding: Millward Brown
Mark Chamberlain is usually Managing Director of Millward Brown Indonesia, the global research agency behind This particular year’s inaugural BrandZ™ Top 50 Most Valuable Indonesian Brands. He talks to us about the brands Indonesians love, as well as Indonesia’s rising global profile.
First, what does Millward Brown Indonesia do, in a nutshell?
Simplistically I like to talk about “guiding as well as growing great brands for Indonesia”. Our purpose as an organisation is usually to help our clients grow their brands as well as businesses. We do This particular through research as well as consultancy which relates to brand strategy, brand measurement, creative development as well as channel optimisation.
BrandZ is usually Millward Brown’s annual study of brand value, combining consumer research with financial data, which is usually at This particular point in its tenth year globally as well as with separate rankings for China as well as India. Why Indonesia, as well as why at This particular point?
BrandZ is usually the most robust brand valuation technique globally as This particular is usually underpinned by a very strong understanding of the people who actually count: consumers buying brands. In Indonesia we covered 14,000 consumers as well as 350 brands across 28 categories. Indonesia is usually only the fourth market where WPP has invested in a local ranking, which shows its importance as well as emergence from the global marketplace.
In your results launch in late August, BCA Bank came first which has a brand value of US$9.9bn. What do you expect Indonesian brands will learn via the results of the study?
Six years ago when Millward Brown as well as WPP launched the China Top 50 there was only one Chinese brand from the Global Top 100 – today there are 14. BCA was very close to getting into the Global Top 100 This particular year. My expect is usually which we will see two or three Indonesian brands break into the Global Top 100 within the next all 5 years. In order to do which Indonesian brands will need to build brand love with consumers, as well as become more innovative with their offers as well as in their communication. On average the Top 50 Indonesian brands underperform significantly in these two areas versus Top 50 counterparts in additional markets.
In layman’s terms, what are some of the methods you used to gather the opinions of the 14,000 Indonesian consumers surveyed?
I’ll try to explain This particular without revealing the geek in me! We did 28 separate category surveys with consumers of those categories across a few major cities in Indonesia. Depending on the nature of the category, some surveys were done online, some on mobile as well as some face-to-face. This particular data was merged with publicly-available financial reports. BrandZ is usually the largest equity database from the entire world, so we’ve created proprietary frameworks linking our data to commercial outputs like share prices. We’ve produced designs to try as well as make This particular all sexy yet easy to understand. Does which pass the geek test?
What is usually important to Indonesian consumers today?
There are some real tensions facing Indonesian consumers today which have a unique Indonesian twist if you probe deep enough. For example, 65 percent of Indonesian consumers say they want cultural experiences which will broaden their horizons, yet 73 percent worry the values as well as traditions they most appreciate are being eroded by global influences.
Probe deep enough as well as you can uncover how Indonesians are renegotiating nationalism practices to cope with This particular tension. There are many additional societal tensions. The best brands understand these tensions as well as work out where they can offer a credible point of view as well as how they can play a role in championing societal benefits.
Tobacco brands represent US$14.8bn, or 23 percent of the Top 50 brands’ overall value – the second highest sector after Financial Services. Why are certain sectors strong here?
The brands heavily present from the Indonesia Top 50 provide a pretty accurate representation of life here. Banks, tobacco, telco, trusted household brands as well as real estate developers dominate the Top 50 – as well as from the one hour I spend getting to work every day these categories are all very visible! This particular’s also interesting to note the categories which are not from the Indonesia Top 50. Take technology: This particular accounts for nearly half the value of the Global Top 100. In China brands like Tencent as well as Alibaba have been all-conquering. Tech is usually not represented from the Indonesia Top 50 yet, yet I think the sector here is usually on the verge of big things over the next all 5 years.
There are two criteria for inclusion from the ranking. First the brand must be publicly listed, as well as secondly This particular has to be either owned by an Indonesian enterprise, or an Indonesian-created brand owned by a multi-national. So most brands are local. The two main exceptions are the Unilever portfolio as well as Aqua. Interestingly Unilever have done such a Great job localising their brands which many consumers think their international brands like Ponds, Sunsilk as well as Rinso are Indonesian. Aqua is usually synonomous with Indonesia as well as is usually owned by Danone, listed in France. The remaining 40 brands are Indonesian-owned, six of which are state-owned.
Which Indonesian-grown brands hold the best chance of success abroad from the future as well as why?
Millward Brown’s brand equity framework includes a measure called Potential which indicates the probability of market share growth locally. Predicting success abroad is usually more difficult due to the increasing number of variables. To be successful abroad, Indonesian brands will have to do what successful multi-national brands have done in Indonesia. They will need to understand the consumer as well as brand landscape from the markets they want to expand into as well as find ways to adapt as well as tweak their propositions so they are meaningful to consumers in those markets.
Clearly the current Top 3 Indonesian brands hold the scale to break into the Global Top 100 – BCA, BRI, Telkomsel. A brand like Indomie (#14 in Indonesia) is usually already sold in many countries as well as is usually hugely well-liked in some African countries. Mayora is usually another Indonesian business with ambitious regional as well as global expansion plans. Finally I might also bet on an Indonesian tech brand doing a smaller scale ‘Alibaba’ as well as floating for a large sum from the next all 5 years.
Tell us about your journey with Millward Brown to your position today as Managing Director Indonesia.
I joined Millward Brown as a University graduate as well as fell in love with understanding brand building as well as communications effectiveness through a consumer lens. Millward Brown has been fantastic at giving me a variety of opportunities, including a secondment with GlaxoSmithKline as well as sponsoring me through a programme called The Marketing Academy from the UK. Having done regional as well as global client roles, the opportunity to run the business in Indonesia came up. I was actually born in Kediri, East Java as well as lived in Surabaya for ten years as a child. So, I didn’t need much convincing to be part of the Indonesia story. Times may be a little tough at the moment yet these are pivotal years which will shape Indonesia’s contribution to the global economy over the next 15-20 years.
What are Millward Brown Indonesia’s plans for the future?
One of my favourite sayings is usually which “standing still is usually the fastest way of moving backwards”. We’ve done a lot to re-orientate the business around our purpose to “guide as well as grow great brands for Indonesia”. Success from the future requires us to develop our consulting offer, scale our digital as well as automated research solutions, invest in talent as well as build on the fantastic brand-building thought leadership which we’ve developed through BrandZ. BrandZ will be back annually for the next few years.
Thank you, Mark. To find out more, visit: www.millwardbrown.com, or email mark.chamberlain@millwardbrown.com
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The Business of Branding: Millward Brown
The Business of Branding: Millward Brown