Creating a strong brand strategy in Indonesia is one of the most challenging tasks for any marketer. Local consumers are more discerning and more skeptical than their counterparts in other markets. They are used to getting everything at the lowest possible price; any premium service comes as a huge surprise to them. And even if your brand does manage to create an impression on them, it will take some time for it to become a household name. Nevertheless, developing a strong brand strategy is never impossible. You just have to put in the necessary work, stay focused, and break down each challenge into smaller ones until it becomes an easy step towards reaching your goal.
Indonesia has a diverse audience of over 270 million citizens, with more than 1650 different ethnic groups.
First of all, you have to be in tune with the diversity of Indonesia’s society. This is because there are over 270 million people who live in Indonesia and they represent a wide range of ethnic groups. The country is also home to over 1650 different ethnic groups. When developing your brand strategy, you should consider how those two factors will affect your target audience and campaign objectives. For example, if your product targets tourists visiting Indonesia, it would be a better idea to choose a city in which the majority of its population is from one ethnicity so that your message stays relevant.
Rising competitors from home-grown brands to foreign brands.
The rise of homegrown brands, especially those with a strong social media presence and an active community, has made it really difficult for foreign brands to break through. You may have the same product as your competitors, but if you're unable to connect with consumers in a meaningful way, they will choose your competitors hands down. The challenge is that Indonesian consumers are also more conscious about the cost of their purchases. They don't want to be ripped off when they buy something, so they put a lot of effort into reading any advertising and reviews before buying anything. This can be very frustrating for foreign brands that try to do this kind of marketing, but it's also necessary because there is a large market available for them if they are able to create an impression on consumers.
Increasing the young middle class segment.
Young middle-class consumers are those who have lots of disposable income and are looking for a better quality of life. Many of them are already inclined to spend their money on premium goods and services. They are also willing to seek out products that have been recommended by their friends or peers. If you manage to reach this segment, your brand will be able to grow quickly.
Indonesia's today is going hybrid: physical and digital together.
One of the most important things to understand is that the Indonesian market today is going hybrid. People are increasingly using both physical and digital channels, which means your brand strategy has to be equally strong in both channels. With this in mind, it’s important to reach out to a wide audience with your content through various platforms and media. A good example of a well-established brand in Indonesia is Starbucks. They don't just have one channel or one message; they have many messages for different audiences in their stores and online. They also offer a variety of products that appeal to Indonesians, such as Frappuccino's because people like their coffee blended and blended drinks are very popular here. Another thing that you can do if you want to create an effective brand strategy for Indonesia market is conducting research on your target audience: what drives them, what do they want from brands, how much time do they spend online? There are many tools available online, such as Google Ads Keyword Planner that can help you find information about your target market. This will give you more insight into what consumers like and dislike so that you can tailor your marketing efforts more effectively.
The battle between Indonesia's home-grown brands vs Asian brands vs Western brands.
Indonesia is one of the fastest-growing markets in Asia. Over the past few years, the country has experienced remarkable economic growth and has become one of the most promising economies in the world. But this increase in wealth comes at a price: consumers have become more discerning and more skeptical than their counterparts in other markets. In fact, consumer research ranks Indonesia as having one of the toughest marketplaces for new brands to establish themselves among its consumers. This is because local consumers are used to getting everything at the lowest possible price; any premium service comes as a huge surprise to them. As a result, marketers have to fight an uphill battle if they want to establish a strong brand position in Indonesia. The battle between Indonesia's home-grown brands vs Asian brands vs Western brands is quite intense and usually ends up with lower prices or less quality. This means that when you’re looking for ways on how to develop your branding strategy, you should first make sure that your branding message aligns with what Indonesian consumers are looking for. If it doesn’t, then you might be better off focusing on another market.
Here are five tips to help you create a strong brand strategy for Indonesia market:
1. Understand the Indonesian culture and what values are important to consumers.
The Indonesian culture is a mixture of Javanese, Indian, Chinese, and European influences. Indonesia has hundreds of ethnic groups and languages, making it difficult for marketing to target one particular group. However, there are some values that are important to consumers in this market. These include family, religion, respect towards elders, and self-reliance. If you want to be successful at getting into this market, you need to identify these values and understand how they affect people's lives and behaviors.
2. Research your competition and understand what they are doing well and where they may be falling short.
One of the most important things you can do is to find out what your competitors are doing well and where they may be falling short. It's one thing to know what's happening in the market, but it's another thing altogether to know how your competition is handling certain aspects of their business. For example, if you're a local marketing company, know that there are three main types of companies you'll be competing against: retail stores, online retailers and distribution companies. The first step in developing an effective brand strategy for Indonesia market is understanding the competition and where they may be falling short so you can develop a strong foundation for your own strategy.
3. Relevant strategy - Create a brand strategy and unique value proposition that resonates with Indonesian consumers.
All brands must have a strong brand strategy to be successful in the Indonesian market. To create a strong brand strategy, you must first understand your target audience and the value proposition that resonates with them. With this understanding, you can create relevant strategies for your business. This will enable you to differentiate from other local brands. A great example of creating a relevant strategy is Coca-Cola’s approach of creating innovative marketing tactics and quality products. Coca-Cola has long been known for its great taste, which is one of the main reasons why it is so popular in Indonesia. It's also because Coke has created innovative marketing tactics that are tailored to local consumers’ preferences. From sponsoring Indonesian soccer teams to making TV commercials featuring national celebrities, Coke has successfully managed to build relationships with key stakeholders in the country.
4. Creative and Impactful Campaign - Develop creative and impactful marketing campaigns that reach Indonesians where they are most active online and offline.
These campaigns might be a TV ad, social media campaign, or print campaign.
Localized Content - Develop localized content that will resonate with Indonesians. If you are targeting a specific audience, use words that are understood in Indonesia and use images that people can identify with. Increase the chances of your content appearing on local trending topics for more visibility.
Social Media - Develop social media strategies that both reach out to consumers and make them interact with your brand as well as increase brand awareness within the country. Building relationships with influencers will also help you gain momentum and maximize your efforts towards market penetration.
6. Use the power of influence: who has the power to influence your market and coordinate with them to build that trust
When developing a brand strategy for Indonesia, you need to be aware of the power of influence in your market. You can start by identifying who has the power to influence your target audience and coordinate with them to build that trust. This can be done through collaborations with local influencers or even through establishing partnerships with brands that are already established in Indonesia. The point is to understand who is influential in your market and then leverage their strength when building your brand's credibility.
5. Monitor your brand’s performance regularly and, of course, correct where necessary to ensure continued success in the Indonesian market.
This will help shape your branding strategy and give you a clearer understanding of the Indonesian market. Adapt your strategies to suit the market you are in. If you know what the consumers are looking for, you can provide that instead of just following your marketing plan. Asking for feedback from your target market will ensure that you give them an authentic experience, and will allow you to tailor your brand strategy accordingly. To benefit from each other's strengths and share marketing costs, create opportunities for retailers and distributors who have strong positions in the market to partner with you. Make sure that the campaign has actionable goals and measurable performance indicators that show results at every stage of the project so that progress can be tracked effectively.
Conclusion
In the modern age of digital marketing, it is essential for companies to establish a strong brand strategy. Similar to the USA, Indonesia has a diverse audience of over 270 million citizens, with more than 1650 different ethnic groups. The immigration of people from various countries has also caused a shift in the demographics of the country. With Indonesia’s rising competitors from home-grown brands to foreign brands and increasing the young middle class segment, it is important for companies to develop a strong brand strategy that is relevant and creative to the Indonesian market. Hiring the right brand consultant can be a good idea if done correctly and there are some common pitfalls to avoid hiring the wrong agency. Solving these brand marketing issues can help your business to reach the right target audiences, build a positive brand image, drive more traffic and capture customer interest. A solid brand marketing strategy can help your brand reach higher engagement both physically and digitally in search engines and drive more traffic to your business. Outsourcing is a great way to jumpstart this process — the right branding agency in Indonesia can give you the advantage when it comes to getting noticed and capturing customer interest.
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