COVID19 Impact on Indonesian Attitudes & Behaviours: Learning for Brands Kantar Indonesia April 14, 2020
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COVID19 Impact on Indonesian Attitudes & Behaviours: Learning for Brands Kantar Indonesia April 14, 2020
Your KANTAR team today
Nadya Ardianti Adisti Bramanti Plaban Mohanty Karthik Narayan Adji Saputro
Chief Client Officer Client Leader Client Partner Executive Director Brand Guidance Lead
2
How we have built the story
The leading syndicated study on how COVID-19 is Using our shopper behaviour expert and our
Weekly update on how COVID-19 impacting
influencing consumer behaviour, attitudes and Worldpanel data to understand the effects on
Indonesian behavior and attitudes, covering 2183
expectations, covering over 50 markets. purchase behaviour
consumers across Rural & Urban Indonesia
Using the world’s largest brand equity database to
bring you learnings on the importance of strong Thought-leadership, analysis, and intelligence on Using KANTAR social media listening to
brands during this time the most critical emerging trends, growth segments understand what people are really getting up to in
and opportunities self isolation
3
What we are going to talk you through over the next hour
1. 2. 3. 4.
What we can learn How are Indonesians How are Indonesians How should brands
from China ? shopping ? feeling? react?
What similarity and What are the myths and What differentiates
difference we can expect what are the facts? And what Indonesians from other
in Indonesia? likely to change? neighboring countries?
4
What you will hear today – key theme across
Constant CHANGING on attitude A “NEW NORMAL” is steadily Find the ‘NEW WAY’
and behaviour is unrelenting forming…
Redefine your strategy and tactic to
Pay attention and adapt to the React to the short-term change but adapt to the new normal, be agile and
changes ASAP don’t lose sight of the long term creative.
5
WHAT WE CAN LEARN FROM CHINA? Nadya Ardianti Chief Client Officer
The Context Matters – China: Digital First Economy
28% 14% 42%
eCommerce % eCommerce % Mobile Payment
to Total Retail Sales to Total FMCG Sales Penetration
Less than 1% for Indonesia 36% at Top 10 Cities Indonesia
7
The Context Matters – China: Sophisticated Omni Channel Landscape
Sophisticated O2O retail Traditional GT digital transformation
8
The Context Matters – China: Agility To Respond Rapidly Toward Emergency
9
The impact on certain sectors was profound during the pandemic in China
10Across categories, safety first is the first consideration for channel choice
Time | Measure: Spend Declining Growing
Hypermarket Supermarket Small Super E-commerce New Retail
H/H Reach: 97%
Main Shopping Channels Trip Frequency: +15%
-15% -12% +12% +22% Hema
(Alibaba’s new offline retail store)
Gifting Overseas Purchase We-Chat
Selected Specific Channels
-36% -32% +35%
13Many China consumers tried new things
14After the pandemic, huge potential for rebound and some behaviour will stay
83% 65% 76%
Still buy masks and Turn wearing masks Pay more attention to
disinfectant for storage into a daily habit the sterilization and
at home disinfection
16Lesson from China and
Implication for Indonesia
PAY ATTENTION to the changes of consumer
mindsets, consumption behaviour and
lifestyles
ACCELERATE digital transformation and bring
digital initiatives into the real business
STRENGTHEN brand-owned digital platform
and embrace social commerce including
community-based eCommerce.
PROACTIVELY ADOPT new digital commerce
tools
18How are we shopping Adisti Bramanti Client Leader
1 Is FMCG growth negatively impacted by COVID-19?
BUSTING 2 Are Indonesians panic buying?
THE MYTHS 3
What does panic buying mean? Are people expanding
their basket size?
Are germ-killing categories the only ones benefiting from
4 COVID-19?
5 Is category growth only temporary?
6 Is Online the only channel that is growing?
20Identifying changes in purchase behavior on a week-by-week period
P2 (4 w/e Feb 23) P3 (4 w/e Mar 22)
Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4
2-Feb-20 9-Feb-20 16-Feb-20 23-Feb-20 1-Mar-20 8-Mar-20 15-Mar-20 22-Mar-20
1st 2 COVID 117 cases 514 cases
Payday Jan Pre COVID Pre COVID Pre COVID Payday Feb
cases confirmed confirmed
Pre COVID-19 COVID-19 outbreak
1 Big week
(bought more in a single week than at any
point during last 8 weeks in comparison to
average of 4 weeks Pre COVID-19)
21Is FMCG growth negatively impacted COVID-19?
1 FMCG is still growing among Upper SES and Middle SES, but slow-down is expected to hit
Lower SES if quarantine continues to limit activity of consumers relying on daily income.
Pay week Pre COVID-19 Pay week COVID-19 Outbreak
110
108
106
104
102
100
98
96
94
92
90
88
Avg 4-weeks Feb 2-Feb-20 9-Feb-20 16-Feb-20 23-Feb-20 1-Mar-20 8-Mar-20 15-Mar-20 22-Mar-20
2020
Total Households Upper SES (AB) Middle SES © Lower SES (DE)
22China went through a more extreme lockdown situation, where FMCG
experienced a decline for 6 weeks before bouncing back to normal.
23Are Indonesians are panic buying?
2 An extended uplift after pay-week is seen in the 1st week after the outbreak only in Jakarta
Greater. We can expect similar pattern rolling out in other regions as they apply quarantine.
103 104
101 101
99 99
96 97
108 108 107
101
99
97 97
94
1 w/e 2-Feb-20 1 w/e 9-Feb-20 1 w/e 16-Feb-20 1 w/e 23-Feb-20 1 w/e 1-Mar-20 1 w/e 8-Mar-20 1 w/e 15-Mar-20 1 w/e 22-Mar-20
Pay week Pre COVID-19 Pay week COVID-19 Outbreak
Indonesia Urban+Rural, Jakarta Greater, SES AB | Total FMCG | Weekly Value Spend Indexed to Average 4-weeks Pre COVID-19 24What does panic buying mean? Are people expanding their basket size?
3 Higher spend of Jakarta Greater in the week of Mar 8th is driven by bigger basket size.
Total FMCG
Week Ending Mar 8th
vs. Pre COVID Unit/Trip Index Spend/Trip Index Trip Index # of Categories Bought
100 102 99 100
104 106 101 103
Indonesia Urban+Rural vs. Jakarta Greater | Total FMCG | Weekly Mar 8th Indexed to Average 4-weeks Pre COVID-19 25Are germ-killing categories the only ones benefiting from COVID-19?
4 An uplift is also seen across categories to accompany consumers to spend time #dirumahaja.
Value Index
110 109
107 108 107 106
Total FMCG PERSONAL CARE DAIRY HOME CARE BEVERAGES PACKAGED FOOD
Unit/Trip Index
Vol/Trip Index
Trip Index
1. Liq. Soap+Sanitizer 1. Cheese 1. Detergent 1. RTD Tea 1. Canned Food
Top 3
2. Baby Wipes 2. Growing Up Milk 2. Floor Cleaner 2. Isotonic Drink 2. Breakfast Cereal
Growing Categories
3. Tissue 3. Margarine 3. Dishwash 3. Powder Beverage 3. Snacks
Jakarta Greater | Total FMCG by Category Sector | Weekly Mar 8th Indexed to Average 4-weeks Pre COVID-19 26Is category growth only temporary?
5 If quarantine continues as we enter Ramadhan, we can expect to see selected categories growing
in the next month to accompany daily activities centralized at home.
Predictions for
Upcoming 1 Month
PERSONAL CARE Stocking Up on next
Short Term Stockpiling April Pay Day only
DAIRY
In-Home Occasion Permanent as we
Increased Demand approach Ramadhan
HOME CARE Stocking Up on next
Short Term Stockpiling April Pay Day only
BEVERAGES Slow growth except
Short Term Stockpiling for festive categories
PACKAGED FOOD
Permanent as we
In-Home Occasion
approach Ramadhan
Increased Demand
2-Feb-20 9-Feb-20 16-Feb-20 23-Feb-20 1-Mar-20 8-Mar-20 15-Mar-20 22-Mar-20
Pay week Pre COVID-19 Pay week COVID-19 Outbreak
Jakarta Greater | Total FMCG by Category Sector | Weekly Value Mar 8th Indexed to Average 4-weeks Pre COVID-19 27Looking ahead and learning from China, if Indonesia government enforces
stricter quarantine, we can expect to see different impact to FMCG categories
28Is Online the only channel that is growing?
6 Despite fastest growth coming from Online, a majority of consumers still shop in Traditional
Trade and Modern Trade.
106
105 Online
104
103 Modern Trade
Trip Index
102
Gifting
101
Specialty Store
100
99
98 Traditional Trade
97
96
80 90 100 110 120 130 140 150
Value Index
Indonesia Urban+Rural | Total FMCG | Weekly Mar 8th Indexed to Average 4-weeks Pre COVID-19 29Looking ahead, creativity kicks in for retailers and manufacturers to
experiment alternative ways to reach their shoppers
Direct Manufacturer Selling Food Hall (MT Supermarket) PD Pasar Jaya (Wet Market)
Order via whatsapp directly to Whatsapp number of store manager Order via phone, delivered via ojek
manufacturer’s sales representative shared to consumers for quicker order
with direct access on product availability
30BUSTING THE MYTHS + Implications
1. 2. 3. 4. 5. 6.
Is FMCG growth Are Indonesians panic What does panic Are germ-killing Is category growth only Is Online the only
negatively impacted by buying? buying mean? Are categories the only temporary? channel that is
COVID-19? people expanding their ones benefiting from growing?
basket size? COVID-19?
Myth / Fact?
Fact (Partial) Fact (Partial) Fact Myth Myth (to be Myth
proven)
FMCG growth is still So far only Jakarta Shoppers are opting for Personal Care is not the Online is the fastest
seen for Upper-Mid Greater shows different bigger volume and only sector growing! Some categories see a growing channel but
SES, but slowing down behavior, with additional expanding their category Consumers are also bounce back entering not the only one
for Lower SES uplift after pay day. repertoire. stocking up other April, but too soon to growing! MT and
categories to accompany conclude as pandemic Gifting
more activities at home. has not reached its peak.
What’s Next?
Lower SES will be most Expect to see similar Ensure availability of big Less Out of Home, more Dairy, Packaged Food Be creative in
impacted in the long run pattern in other regions packs in store to cater In Home with positive and Beverages expanding different
if quarantine continues to as and when they apply needs of shoppers outlook for categories expected to grow as we types of distribution
limit daily income. quarantine seeking to upsize catering specific purpose: enter Ramadhan with channels that give a
Protect (germ-kill), more time spent at solution to barriers for
Prevent (nutrition), home, though possibly consumers to have
Comfort Eating (ready to at a slower rate than access to your product.
eat / easy to cook). last year
31How are Indonesians feeling? Plaban Mohanty Client Partner
Indonesia is the fastest to reach 100 cases – and Govt actions has been aimed at controlling
the pandemic. Despite all the measures, it has already reported 300+ deaths
1. 2. 3.
12th March 13th March
2nd March
Numbers boomed after 10 days And now cases have reached >100 two
First official case
weeks after first detection*
Indonesia Worldwide
Total Cases 117 169,610
Total Deaths 5 6,518
Total Recover 3 77,776
Active Cases 104 85,316
4. 5. Indonesia Is the Fastest to 100
Verified Cases
17th March 8th April
Extension on COVID-19 Emergency And now the number of death has
47
crossed 200 within a a little over a month 43 42
38
Indonesia Worldwide
25
Total Cases 3842 1.7 Mio 20
8
Total Deaths 327 108,837
Total Recover 286 404,448
Active Cases 3229 1.2 Mio
33Despite the stark numbers… we see Indonesians to be concerned but assured
COVID Anxiety Meter: Total Indonesia Trends
Concerned and know what to do Very concerned and don’t know what to do % Concerned
Trigger: 22nd March 78%
Trigger: 15th March Highest daily increase
President address to in number of Deaths 71%
nation on COVID 10%
63% 63% 10%
58%
54% 55% 54%
51% 51% 51% 51% 14% 14%
13%
43% 13% 15% 11%
12% 12% 11% 12%
13%
68%
61%
49% 49%
45% 43%
39% 41% 39% 40% 39% 40%
30%
13th March 14th March 15th March 16th March 17th March 18th March 19th March 20th March 21st March 22nd March 23rd March 24th March 25th March
Note : Sample size of 6428 34Indonesia & Malaysia are the only countries in the region which have
maintained a Net-positive sentiment in their Social media chatter about COVID
Source: Kantar Social media listening tools 35Nearly half the population feel the disruption in daily life, financial security is
being raised as a major concern. Health and Scarcity are low on concern.
Impact on Financial Economic Impact on Scarcity
Daily Life Security Recession Health
The current situation is not This situation has had no It will take a long time for the I am confident that I will stay I do not see the need to stock
impacting my day-to-day life impact on how I think about economy to recover and there safe by taking precautions up and have not adjusted my
that much financial planning will be a long term impact and looking after my hygiene shopping behavior
5% 6% 9% Low concern
7% 8% 15% 15%
7% 9% 17%
18% 19%
32% 10%
35% 13% 14%
25%
30%
33%
49% 43% 39%
25% 19%
High concern
The current situation is This situation demands us to I believe the economy will I am worried about falling
I have bought a lot of
impacting my be even more proactive about recover quickly once coronavirus sick no matter how much
extra items to be prepared
day-to-day life financial planning situation has died down I take care of myself
Q1: People concern towards COVID-19 (Overall concern, Overall Impact, Impact on Health, Financial Security, Economic Recession, and Scarcity) 36People find that sense of security, and freedom for socializing and leaving the
house are the most difficult thing to give up in their daily lives.
Hardest Thing to Give Up in Daily Life
47 46
39
36
30 29 29
15
13
6
Social interaction Sense of safety Leaving the Freedom Convenience Routine Big plans Children going to Flexibility Practice sport
house school
Q23. Which of the following have been the hardest to give up because of the effects of the coronavirus? Please select 3 things you have found the hardest to give up 37Staying connected socially is now moving Online…
Hardest Thing to Give Up in Daily Life
47 46
39
36
30 29 29
15
13
6
Social interaction Sense of safety Leaving the Freedom Convenience Routine Big plans Children going to Flexibility Practice sport
house school
Q23. Which of the following have been the hardest to give up because of the effects of the coronavirus? Please select 3 things you have found the hardest to give up 38Indonesians feel that information would help them stay prepared and positive
through this period
Statement best describes current feelings
54 19 14 6 6 1
Being prepared and well I am ready; in these I am sure I will come out I am worried about We have to do it There is too much fear;
informed is most moments you have to stronger myself and loves ones together it will not become
important now react serious
Q2: Which statement best describes your current feelings? 39…and most information search are around identification and prevention of
COVID-19
Statement best describes current feelings
54 19 14 6 6 1
Being prepared and well I am ready; in these I am sure I will come out I am worried about We have to do it There is too much fear;
informed is most moments you have to stronger myself and loves ones together it will not become
important now react serious
Q2: Which statement best describes your current feelings? 40Official sources such as Government agency websites, National media
channels, and International advisory body websites deemed to be the most
trustworthy messengers about COVID-19.
Most trusted sources for COVID-19 information
73
69 68
45
33 32 31 30
25
23
18
16
4
Government National International Digital Digital Social media My friends My doctor Social media Healthcare My Pharmacist Other
agency media advisory Healthcare Healthcare - people I and family - influencers phoneline healthcare
websites channels body platforms platforms know provider
websites (free) (paid)
Q14. What are your most trusted sources of information about Coronavirus? 41Claims of search gets validated – symptoms high on search in Indonesia
The peak in the later part might be impacted by more at-home population
Trigger:
Authorities Address to the 3 4
Nation Surakarta Lockdown
Trigger:
More news
Trigger: New Cases & Death Rate
First 2 confirmed Cases in Indo 2 Companies Adopting WFH Polices Coronavirus
Trigger:
26th Jan: General Outbreak News 1 Lockdown
Rumah sakit:
Hand sanitizer
Symptom
06/01/2020
08/01/2020
10/01/2020
12/01/2020
14/01/2020
16/01/2020
18/01/2020
20/01/2020
22/01/2020
24/01/2020
26/01/2020
28/01/2020
30/01/2020
01/02/2020
03/02/2020
05/02/2020
07/02/2020
09/02/2020
11/02/2020
13/02/2020
15/02/2020
17/02/2020
19/02/2020
21/02/2020
23/02/2020
25/02/2020
27/02/2020
29/02/2020
02/03/2020
04/03/2020
06/03/2020
08/03/2020
10/03/2020
12/03/2020
14/03/2020
16/03/2020
18/03/2020
20/03/2020
22/03/2020
42Behavioral & Attitudinal Changes Owing to COVID-19
% who have changed following behaviors because of COVID
79%
Spend most of my time at Home
Nearly 80% Indonesians Staying
at Home 31%
spending Most of their Watch a lot more TV
Impact
Time at home!
Reduced Eating out, cooking 43%
more
Total
Switched to more Online 10% Big Cities
Online behaviors see a Changing shopping Small Cities
rise but no major swings Online
Behaviors 16%
Increased Online education
56%
Lifestyle choices Nutrition Consuming more Vitamins/ Jamu
impacted higher in Big
Started worrying about Job/ 38%
Cities Income
Financial
Concerns
26%
Reduced spending to save more
Financial stress cuts
Festive 20%
across cities… Changes Thinking not to Mudik
43Behavioral & Attitudinal Changes – Tracking the Trend
% who have changed following behaviors because of COVID
86%
Spend most of my time at Home
More Indonesians are Staying
“in-home” than those at at Home 36%
Watch a lot more TV
the start of the outbreak Impact
Reduced Eating out, cooking 47%
more
7-12th April
Switched to more Online 14% 1-6th April
Online adoption on an Changing shopping 27-31st March
upward swing Online
Behaviors 25% 25-26th March
Increased Online education
65%
Nutrition Consuming more Vitamins/ Jamu
Personal Finance has
been a concern from the Started worrying about Job/ 36%
onset of the outbreak Income
Financial
Concerns 26%
Reduced spending to save more
Rising trend in people 25%
Festive
re-considering Mudik Changes Thinking not to Mudik
Steadily Rising Trend
44Majority of Indonesians believe the COVID problem will be resolved in 3
months
But, confidence in early resolution is declining. Small Towns are more confident about earlier resolution
Indonesians COVID Resolution Outlook
I think the COVID problem will get solved/ improve in…..
100%
90%
28 27 29 30 27 30 Not Sure
80%
70% 9 3
10 8 13 13
60% 11 > 3 months
50% 20 21 21 15 25
40%
1 to 3 months
30%
56
20% 41 43 41 42 35
10% Within 1 month
0%
Total SES A SES B SES CD Big Cities Small Towns
100
90
% saying COVID will resolve in less than 3 months
80
70
60 63
57
50
40
30
20
10
0
28th March 30th March 1st April 3rd April 6th April 9-10th April
45So, How Are Indonesians Feeling?
1. 2. 3.
Adjusting Adopting Aligning
People take time to Adjust to the With the COVID-19 situation With the acceptance of the new normal
new normal that they have been prolonging, people worry about people will move towards more long
presented with, which saw sudden finances more. They prepare to plan term alignment, find new ways to
impact on day-to-day behaviors… long term and let go off heavy spend manage life
occasions
46How Brands can respond? Karthik Narayan Executive Director
Stages of consumer’s emotional journey
#1 Disruption #2 Confusion & Uncertainty #3 Acceptance of the New Normal
(Short term) (Mid-term) (Long term)
• Lifestyle changes • Mental fatigue – prolonged lockdown • Long term behavioural shifts
• Loss of freedom • Economic impact • New outlook to life
• Quarantined living • Life vs Livelihood
48Role of Brand in each stage
#1 Disruption #2 Confusion & Uncertainty #3 Acceptance of the New Normal
REASSURE & SUPPORT OFFER HOPE ADAPT & ENABLE
Help, support with lifestyle changes Be a catalyst of positivity Evolve with the consumer & help
adapt to the new normal
491 DISRUPTION REASSURE & SUPPORT – Make it easy for your consumers to cope up
Consumers are taking the crisis in their stride with a positive outlook rather
than being too anxious
Statement best Sentiment Conversations
describes current feelings Based on social content Based on social content
54% Positive
58%
19%
14%
Negative
Being prepared I am ready; in I am sure I will 42%
& well informed these moments come out
is important you have to stronger Base: 604,270 posts
reactThey expect the same from brands, create positivity and play its part in
supporting consumers
Consumers want brands to play a proactive and positive role
Advertising should…
97%
want brands to continue
56% 53% 52%
advertising
Offer a positive Talk about how they Inform about their efforts
perspective could be helpful in the to face the situation
new everyday life
52Brands need to respond to the changing circumstances of the consumer by
playing a responsible role
1 DEMONSTRATE HOW THE BRAND CAN HELP
2 SHOWCASE THE SOUL OF THE BRAND
53Be responsible and make a difference to your consumers everyday life
Brands should… Offer practical help to fulfill everyday life needs
31%
attack the crisis and
20%
be practical, realistic, and
demonstrate that it help consumers in their
can be fought everyday life
Telkomsel & Ruangguru offering free
data packs for students
Korean BBQ
experience at home
Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 54Demonstrate the corporate social responsibility
Consumers expect companies to…
76%
66%
41%
CottonInk providing
protective equipment
Protect Donate to Support
employees hospitals government
health where possible
55Be authentic…
Consumers don’t want brands just to be creative & exploit this opportunity
Don’t come across as casual and
frivolous; keep an eye for any
negative reactions and act
immediately
Received social media backlash as was seen as
casual and not contributing actively to the cause
56Be agile in innovating to deliver to the consumers immediate needs as a result
of the lifestyle changes
Tuku launched Tukucur, a 1-litre SKU to cater to Martha Tilaar & NIVEA responding to
Contactless delivery by Gojek & Grab in-home consumption. Available online the high demand for hand sanitizers
57Quarantined living offers new opportunities; creating new in-home occasions
% who have changed behaviors because of COVID
Lifestyle changes are likely to create new occasions for
consumption. Track these behavioural changes to tap into
new occasions for your brands. 76%
spend most of my Kantar COVID 19 Sentiment Check in Indonesia –
time at Home FW period last week March 2020
Shift from OOH Experiences to In-Home experiential eating.
Corona virus impact on in-home food consumption
Besides healthy eating, comfort eating is also increasing as
consumers resort to trying new foods.
90% 61% 41%
Try to eat Trying more Snack more
Adapt to new in-home rituals and healthier new recipes throughout day
experiences for people
Kantar COVID 19 Barometer Online study in Indonesia –
FW period last week March 2020
58More time at home leading to over-exposure to media
Brands should plan their media to avoid over exposure & optimize spends
Change in media consumption Synergy between TV and Digital Channels
TV
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Social network
Online video
Internet surfing
Instant messaging systems / apps
Strongest synergy
Online videos Social Media
Strong synergy
TV
TV on demand/streaming
Listening to podcasts /streaming music Online display
Increased Same Lower Don’t consume this media
In normal conditions, synergies between TV & Digital
Channels are the strongest. With an increase in viewership
of these channels and decrease of OOH Exposure, the
synergy is likely to increase
Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 59Disruption
Reassure & support consumers to adapt to the changing lifestyle
AUTHENTICITY IN ACTION INNOVATE TO CATER OPTIMIZE
AND POSITIVITY IN COMMUNICATION TO NEW OCCASIONS AND RITUALS MEDIA SPENDS
Bring out the positive Demonstrate Be agile in Pay attention to Avoid over-exposure
spirit in tone of corporate innovating home occasion due to rise in TV &
communication responsibility & marketing Digital consumption
. contribute actively
Resonate with the positive Consumers expect brands Innovate to cater to the Create new in-home rituals Adapt your media plan to
outlook demonstrated by to play a responsible role. consumers immediate & experiences as in-home an in-home audience’s
consumers in their needs due to a changing occasions have increased. higher consumption of
response to the crisis Ease consumers everyday lifestyle e.g. in-home media.
lives through your products occasions, heightened
& services. sensitivity to health & Re-look at frequency of
hygiene, delivering the exposure & monitor
Showcase the soul of brand experience at home, big inefficiencies due to over-
by contributing tangibly packs. exposure
602 UNCERTAINTY Offer hope & help consumers to bring out their fighting spirit
Consumers seek advertising as a relief & promise of hope
Only 3% of Indonesia consumers believe that companies should stop advertising.
56%
expect advertising should
Many say that in a constant news cycle
about coronavirus, advertising provides
Help your consumers see the future,
give them the confidence to overcome
a sense of normality, or even distraction the crisis and look forward to a brighter
offer a positive perspective
and escape future.
Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 13
62Tickle & treat through tone of communication to create cheer
Use appropriate humour as it adds positivity & cheer to lives as they struggle with uncertainty
120
100
80 GOOGLE SEARCH
60 RESULTS
40
59%
HUMOUR - Memes, Comic
20
strips, funny pictures, photos.
0
3/1/2020
3/2/2020
3/3/2020
3/4/2020
3/5/2020
3/6/2020
3/7/2020
3/8/2020
3/9/2020
2/27/2020
2/28/2020
2/29/2020
3/10/2020
3/11/2020
3/12/2020
3/13/2020
3/14/2020
3/15/2020
3/16/2020
3/17/2020
3/18/2020
3/19/2020
3/20/2020
3/21/2020
3/22/2020
3/23/2020
3/24/2020
Don’t want advertising to avoid
humorous tones during COVID
Communicate hygienic Influencers sharing Fun challenges like
practices in a fun tone information with a humorous #handwashchallenge also help
tone to keep the tension low people to overcome boredom
63True to its affiliative culture, Indonesians find the constraints on social
interaction as the most difficult lifestyle change
Top 3 hardest things to give up in daily life as result of Social Interaction
COVID 19 effects Hardest thing to give up across S.E. Asian countries
47%
47% 46% 17% 35%
39%
34% 33% 17%
Social Sense of Leaving
interaction safety house
Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 64Brands should seek to be enablers of social interaction & help people bond
Google Chrome extension ‘Netflix Party’ allows friends to simultaneously Guinness on St. Patrick’s Day supports
stream. It has a group chat allowing people to talk at the same time & the festive celebration in a safe manner
play/pauses for everyone in the group so you stay synced and evoking the spirit of togetherness.
65Tough times are bringing out the survival spirit as people are taking up-
to pursuing interests and skilling up
Brands should partner consumers through its platforms to create content & not just consume
AI image analytics using Instagram posts Indonesia Google Search trends in March
LEARNING – Home Learning, e-learning, new skills
COOKING – Recipes, new cooking techniques
Kantar Image Analytics using Instagram posts in UK/US/Italy in w/c 9th March 66Address the paradox of DESIRE vs SCARCITY
Extended lockdown will give rise to tensions & trade-offs
TRADE OFF BETWEEN...
DESIRE SCARCITY/ BARRIERS
Indulge, old habits Supply shortage, lockdown,
shrinking income
Brands need to relook at pricing, format innovations (small affordable indulgence) to
feed this desire within the constraints of the situation
Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 67Uncertainty
Offer hope through advertising and partner with consumers to celebrate their survival spirit
COMMUNICATE TO OFFER HOPE INNOVATE YOUR OFFER, TOUCHPOINTS TO BE
& AN ESCAPE FROM THE NEGATIVITY RELEVANT, AND MEANINGFUL
Entertain & engage Tickle & treat Enable consumers Partner consumers Address Desire vs
through advertising through tone of to bond & socialize in creating content, Scarcity tensions
communication not just consume
Use creative channels to Use of appropriate humour Through communication & Consumers are looking to Prolonged lock down will
offer distraction & escape is acceptable as it adds leveraging its digital learn new skills as they give rise to consumer
from the crisis. cheer & positivity to lives as channels brands should have more time. desires/ urges. Prevailing
they struggle with uncertain enable consumers to short supply, lockdown &
Content doesn’t need to times interact with others; the Provide a platform to shrinking income will pose
specifically reference affiliative spirit of encourage and take part in constraints to fulfill this
coronavirus as people are Indonesians this wave of creativity for desire.
all too aware of the your consumers
situation. Address this tensions, with
pricing, format innovations
(small affordable
indulgence)
683 ACCEPTANCE Enable consumers to adapt to the new normal
The crisis has necessitated new behaviours leading to long term irreversible
shifts. Monitor these signals of change.
Coronavirus impact on shopping habits % strongly
agree
Avoid superstores & malls 46%
Brands need to identify
behavioral changes becoming Prefer shopping groceries in supermarkets near home 42%
Behaviours
the new normal.
Prefer playing with credit / debit cards, debit cards & 31%
mobile apps instead of cash
Signs to watch out for: Pay more attention to prices 39%
Purchase more sanitizing products 37%
• Uptrading to reputed brands
• Shifting brand loyalties Attitude Purchase more long-shelf-life food 33%
• Performance as drivers of brand
choice Pay more attention to the origin of the products 30%
• Changes in consideration set
Pay more attention to products on sale 22%
Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 70We can expect long term orientation gaining importance with the consumer
becoming more discerning towards brand choices
Google Search Trends – March 2020
Education Investing Ecology & Environment
120 120 120
100 100 100
80 80 80
60 60 60
40 40 40
20 20 20
0 0 0
Safe and secure expectations
gaining importance. Recent search trends indicate consumers state-of-mind,
actively pursuing topics with a long-term orientation.
In the near-term consumer brand choice drivers can expect some shifts
From instant gratifying experiences to sustainable long term benefits
Safety, health, hygiene, sustainability will gain popularity
71Consumers would have learnt & evolved through the experience; need to adapt
Laptop Living – AI image analytics using Instagram posts Online Shopping – New buyers of…
21% 18% 17% 17% 12%
OTC Pharma Cosmetics & Food & Clothing & Electronics
products personal care beverages accessories
New opportunities would take birth, a surge in digital commerce
In Indonesia lifestyle changes like Zoom Arisan sessions, Virtual Nongkrong,
Virtual aerobic sessions / classrooms are observed
Experiment with new delivery & media
channels to cater to new lifestyles.
Kantar Image Analytics using Instagram posts in UK/US/Italy in w/c 9th March Kantar COVID 19 Barometer Online study in Indonesia – FW period last week March 2020 72Acceptance Stage
Enable & adapt to the changing consumer needs
MONITOR SIGNALS OF CHANGING DESIGN YOUR OFFER TO CATER TO ADOPT DIGITAL AS AN
BEHAVIOURS AND MINDSETS THE NEW NEEDS ENGINE OF DELIVERING
YOUR PROMISE
Look out for Keep finger on the Embrace shift Adapt to an evolved Be digitally prepared
irreversible changing pulse of towards safety, consumer – experiment – make online
behavioural shifts consumers towards health, hygiene & with new delivery & shopping immersive to
long termism sustainable products media channels mirror offline shopping
Understand shifts in Be prepared to serve a These themes should be Brands will need to Proactively adopt new tools
consumer decision criteria more discerning and considered for future accelerate their learning on such as e-commerce,
leading to a new normal in selective customer product development how to market to a more immersive experience to
consumer behaviour. digitally savvy consumer. restore the physical store
shopping experience for
online shopping.
73How Brands Can Respond
#1 Disruption #2 Confusion & Uncertainty #3 Acceptance of the New Normal
REASSURE & SUPPORT OFFER HOPE ADAPT & ENABLE
• Communicate your contribution • Communicate to be catalyst of • Evolve with the consumer and
& responsible action hope help adapt to the new normal
• Innovate to support consumers • Innovate to address tensions of • Experiment with the new delivery
adapt with the disruption Desire vs Scarcity and media channels.
• Review media to optimize • Help consumers to create • Relook at digital as an engine of
content, than just consume delivery of your brand promise
through your media channels
74Stay close to your consumers in these tough times
Communicate to them & be a Renovate your offer to adapt to Reach out to them efficiently with
companion their changing needs change in media consumption
75How Brands Should React? What signals about brands should we be monitoring even closely now? Adji Saputro Brand Guidance Lead
What do we know about brands in Indonesia?
In times of crisis, stronger brands will ..and understanding the elements that ..but marketers need to know, when
prevail.. build strong brands in Indonesia is to balance the pursuit of building
critical.. brand strength and justifying price
Be thought of quickly & easily
Be Salient
Be appealing & meet needs
Be Meaningful
After the 2015 crisis, our portfolio of strong
Indonesia brands are able to financially recover Stand out & be distinctive
faster compared to the average performers.
Be Different
Source: BrandZ Indonesia 2019 Source: Kantar equity framework Source: BrandZ Indonesia 2019 : 18 tracked categories
77Dettol, which saw its brand building efforts in the past being justified in these recent periods,
is likely to get through these tough times
Dettol – how it communicates the
Communications Index Purpose Index
brand
139
120 136
133
115
113
111
Dettol has inherently started as a germ protection 105
103
brand giving it uniqueness compared to others..
Dettol
.. but it has also positioned itself as a brand with a
Index legend (100 = average for category)
purpose, showing how it fits into people’s lives.
Stand for something unique Make people's lives better Premium Index : 114
Price Index : 118
2015 2017 2019 Even with a higher price index, Dettol is able to justify
its price through the strength of its brand.
61% Overtime, the brand building effort of Dettol has
40% resulted in the growing communications and Thus with the added relevance of the situation, pull
purpose perceptions of Dettol. through this crisis
Source: BrandZ Indonesia 2015 - 2019 – Personal hygiene category 78However, there is a market shift due to COVID, and it becomes more important
to know what consumers are thinking about your brand these days
COVID is increasingly looking like the ‘trend breaker’ that Brands need to lock-in on the important brand signals
spans across categories during these critical moments
Take into account your category and brand context as well, as
always ‘one size fits all’ solutions are not the best solutions
Category Relevance + Brand Relevance = Tailored Action
Look into too much and we will be overwhelmed, BUT
Look into too little and we will be under-informed
What this means: consumer brand metrics and perceptions might not
behave as it was before!
Source: COVID 19 Barometer – March 2020 - Indonesia
79Kantar recommends brands to focus on these signals and metrics, during
each phase of brand adjustment, assessment, & recovery
Short Term (now – 3 months) Medium Term (now – 6 months) Long Term (3 –12 months)
Manage expectations of impact and adjusting Assessing extent of change and minimizing Navigating recovery and activating growth
brand disruption
Key Question & Metric to focus on
What’s the competitive pressure like now? What has been disrupted in your category? Are you justifying what you charge?
• Awareness, Trials, Usage • Category importance (relevance) • Premium Index
• Consideration • Needs based salience • Price Perception
• Media communications • Category penetration* • Actual Price Index*
• In-market volume flow
• Purchase channels*
Is your brand helping your consumers? Is your equity strong enough to recover? How well does equity translate to sales?
• Imageries on purpose • Brand Power • Equity to volume flow
• Affinity/Meet Needs • Meaningful Difference Salience • Volume share*
• Perceived authenticity
*can be sourced from consumer panel data 80So, to wrap it all up, here are 4 key points on what brands need to do
1. 2. 3. 4.
Play the long game, do not Know when to trade on Change is eminent, and the Change can be temporary
negate investment in your brand and when to trade competition doesn’t stand or permanent
brand on price still
Your brand health is If it’s time to make a tough Now, more than ever, you Arm your brand with both a
important and can get you call and justify price, focus on need to tune into competitor short-term and long-term plan,
through tough times. Know the levers that we know will actions and performances to consumers’ attitudes and
your brand strength levers help your brand. Be unique keep a finger on the pulse of behaviors are changing and
and understand how you and purposeful, keeping in fluctuating category some of these changes will
can maintain or dial up mind your perceived price dynamics, so you can stay endure – understand how to
these levers. and actual price in the market. ahead of the game through mitigate temporary changes and
the crisis and upon recovery course-correct to respond to
permanent changes.
Invest in your brand health Embrace the winning plays of Be in the know Be prepared
balancing brand and price
81Finally, let’s remember where we started
Constant CHANGING on attitude A “NEW NORMAL” is steadily Find ‘NEW WAY’
and behaviour is unrelenting forming…
Redefine your strategy and tactic to
Pay attention and adapt to the React to the short-term change but adapt to the new normal, be agile and
changes ASAP don’t lose sight of the long term creative
82We are here to help – additional resources and further content
o There is a huge amount of content on
Kantar.com/inspiration/coronavirus
o Indonesia Covid19 pulse
A true representative of Indonesian is available
o Our global Covid19 barometer understanding
the impact for brands is running in 50 markets
o Access our Covid-19 daily news alert
launching this week
o Next webinars is on how Covid19 affect Ramadhan
look out for invitations
83See you soon.. In the meantime, stay safe Kantar Indonesia April 14, 2020
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