In continuation with its efforts to recognise WOW Brands in Indonesia, MarkPlus organised yet another awarding ceremony in Jakarta yesterday for two industry groups: Property and Consumer Packaged Goods (CPG). The Indonesia WOW Brand Awards 2015 were held in the Ritz Carlton, Mega Kuningan in Jakarta, where brands from various CPG and Property industries were awarded Gold, Silver and Bronze medals. Product categories varied from FMCG, including toiletries, beverages, and confectioneries in CPG to shopping malls, residential estates, bakeries and coffee shops in Property.
Winners were felicitated based on BAR – brand advocacy ratio (see exhibit) which is a metric of how well a brand is recommended by those who are aware of it. It is based on the WOW Marketing concept, which is elaborated here. The awards are based on research conducted by MarkPlus Insight, which included 1,806 respondents for the consumer packaged and personal care category in 18 cities across Indonesia. For the Property industry, the survey included 600 respondents in the Jabodetabek area.
Source: MarkPlus WOW Marketing concept
In the CPG industry, the research demonstrates a variety of models emerging, based on the dominance of brands in various product categories. For example, in Bottled Water category, there is a Single Brand Dominance with Aqua - a packaged mineral water from Danone, much ahead of its competitors. In Energy Drink category however, we witness a Multi-Brand Dominance, whereby a number of brands perform more or less similar. In Bar soap, a Progressive Dominance model emerges, signifying a top brand which however faces significant competition from rivals because of the ease of substitution. The fourth model is that of Equal Dominance, where no particular brand emerges as a market leader potentially because of no specific preferences among consumers.
Among the CPG brands in Indonesia, several stood out in terms of achieving high PAR (Purchase Action Ratio) and BAR. Together, the two metrics help determine the brand’s market performance. For example, Gatsby records the highest PAR of 0.94 across product categories in CPG, while Dettol had the highest BAR score of 0.80 as a bar soap.
In the CPG industry, consumers tend to form purchasing decisions based on functional and emotional motivations, which vary from one product category to another. For instance, consumers buy products including instant noodles, cooking oil, and milk tend, based largely on functional needs, while there tends to be an emotional consideration while picking chocolate, yogurt or ice-cream. That also tends to create a difference in how customer path turns out to be, in various product categories.
For a complete list of award winners in the CPG and Property industries, please click here.