Indonesia 2016 | Highlights | Brand Contribution
Meaning drives Brand Power, fuelling value growthThere are some brands that punch above their weight in the BrandZ™ rankings because they are boosted by having a strong score on ‘Brand Contribution’.
Brand Contribution is an assessment of how effectively a brand differentiates itself from its competitors, generates desire and cultivates loyalty. It is derived from extensive consumer research, ensuring it is rooted in real-life consumer perceptions, and is one of the measurements included in the calculation of brand value. The Brand Contribution score, measured on a scale of one to five (five is the highest) is one of the key differentiators between BrandZ and other brand valuation methodologies.
Those brands with high scores tend to be resilient to challenges in the market. They predispose consumers to choose their particular brand or pay more for it, purely based on the perception they have of it.
In Indonesia, the brands with the highest Brand Contribution scores are all fast-moving consumer goods names. They represent some of the most ordinary of categories, and some of the products with the lowest price tags in anyone’s home, but they are deeply valued by consumers and frequently used. They tend to be long-standing brands that have simply made themselves part of people’s everyday lives.
There are four Indonesian brands that have attained the maximum Brand Contribution score this year: the tea brand SariWangi, Indomie noodles, Rinso laundry products and Pepsodent toothpaste. All of these brands have had a decades-long presence in this market; they are familiar, deliver consistent performance and, crucially, have made a powerful emotional connection with the people they serve.
There are three factors that go into measuring Brand Contribution that we know make people buy more and pay more for a brand. Brands must first be Meaningful – a combination of rational and emotional affinity – they must feel Different to the competition, and they must be Salient, that is they come to mind quickly. BrandZ™ is the only brand valuation ranking to include Brand Contribution in its methodology. This crucial aspect of brand value is determined through in-depth research with consumers both online and face-to-face to build up a detailed picture of how brands figure in people’s minds.
Top 10 Brands by Brand Contribution
Brand Power is one aspect of Brand Contribution and measures a brand’s ability to make people want to choose it. Brands with high Power scores tend to sell more, and this power drives brand value.
Powerful brands were the main source of growth in the BrandZ™ Top 50 Most Valuable Indonesian Brands this year. The brands with the strongest Brand Power grew their combined value by 7 percent this year – while the least powerful brands actually became 14 percent less valuable.
The difference in value between the brands with the strongest and the weakest Brand Power has opened up in the past year, as strong brands grow and those with less Brand Power lose ground both in the minds of consumers and in their brand value.
The strongest brands in Indonesia are now five times more valuable than the weakest. Just a year ago, the most powerful brands had brand value four times that of the weakest.
Ways to Win
One of the clearest ways marketers can build their Brand Power and Brand Contribution is by being truly Meaningful to consumers. Meaning is driven by meeting the functional need that drives a consumer to buy a product, and by being top of mind, but also by providing an emotional link and answering the question: ‘How do you make consumers feel?’
Being Meaningful, having a high Brand Contribution score and strong brand value are all closely linked, and an investment in fostering how Meaningful a brand is, is an investment in future brand value.
The Top 25 brands in terms of Meaning are nearly five times more valuable than the next 25 most meaningful brands (US$54.37 billion versus US$11.8 billion).
One of the ingredients of Meaningful brands is love – a genuine closeness that people feel for a brand that help it achieve higher volume sales and command a higher price. For a closer look at the role of love and innovation in building strong brands in Indonesia, see page XX.
Achieving value through meaning
Theory in Action
SariWangi is Indonesia’s favorite tea and the brand with the second-highest Meaningful score in the Top 50 ranking in 2016. This is a long-standing brand that many of today’s consumers have grown up with, but it’s not just longevity that serves this brand well. The brand has a deep understanding of the range of tastes people have in different parts of the country, and its product range caters to those regional differences with lines people feel are just for them. Marketing focuses on the role of tea drinking in family togetherness and sharing, but manifests that message in creative ways that go beyond the tired dinner table motif so often called upon by brands in Indonesia. Its letter-writing competition, encouraging family members to share their feelings through letters, has been a national phenomenon. SariWangi’s brand value increased 6 percent in 2016.