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
and behaviour is unrelenting
Pay attention and adapt to the
changes ASAP
A “NEW NORMAL” is steadily
forming…
React to the short-term change but
don’t lose sight of the long term
Find the ‘NEW WAY’
Redefine your strategy and tactic to
adapt to the new normal, be agile and
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

10
Across 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%

13
Many China consumers tried new things

14
After 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

16
Lesson 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

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How 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?

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Identifying 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)

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 Is 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)

22
China went through a more extreme lockdown situation, where FMCG
experienced a decline for 6 weeks before bouncing back to normal.

23
 Are 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 24
 What 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 25
 Are 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 26
 Is 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 27
Looking ahead and learning from China, if Indonesia government enforces
stricter quarantine, we can expect to see different impact to FMCG categories

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 Is 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 29
Looking 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

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BUSTING 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
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How 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

33
Despite 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 34

Indonesia & 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 35

Nearly 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) 36
People 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

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 37
Staying connected socially is now moving Online…

Hardest Thing to Give Up in Daily Life

47 46

39
36

30 29 29

15
13

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 38
Indonesians 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? 40

Official 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

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? 41
Claims 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
42
Behavioral & 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

43
Behavioral & 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

44
Majority 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

45
So, How Are Indonesians Feeling?

1. 2. 3.
Adjusting Adopting Aligning

People take time to Adjust to the
new normal that they have been
presented with, which saw sudden
impact on day-to-day behaviors…
With the COVID-19 situation
prolonging, people worry about
finances more. They prepare to plan
long term and let go off heavy spend
occasions
With the acceptance of the new normal
people will move towards more long
term alignment, find new ways to
manage life

46
How 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

48
Role 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

49
1
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
react
They 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

52
Brands 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

53
Be 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 54
Demonstrate 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

55
Be 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

56
Be 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

57
Quarantined 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

58
 More 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 59
Disruption
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
spirit in tone of corporate
communication responsibility &
. contribute actively
Resonate with the positive Consumers expect brands
outlook demonstrated by to play a responsible role.
consumers in their
response to the crisis Ease consumers everyday
lives through your products
& services.
Showcase the soul of brand
by contributing tangibly
Be agile in Pay attention to Avoid over-exposure
innovating home occasion due to rise in TV &
marketing Digital consumption
Innovate to cater to the Create new in-home rituals Adapt your media plan to
consumers immediate & experiences as in-home an in-home audience’s
needs due to a changing occasions have increased. higher consumption of
lifestyle e.g. in-home media.
occasions, heightened
sensitivity to health & Re-look at frequency of
hygiene, delivering the exposure & monitor
experience at home, big inefficiencies due to over-
packs. exposure

60
2
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
62
Tickle & 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

63
True 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 64
Brands 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.

65
Tough 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 66
Address 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 67
Uncertainty
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)

68
3
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 70
We 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

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Consumers 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 72
Acceptance 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.

73
How 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

74
 Stay 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

75
How 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

77
Dettol, 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 78

However, 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

79
Kantar 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 80

So, 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
important and can get you
through tough times. Know
your brand strength levers
and understand how you
can maintain or dial up
these levers.
If it’s time to make a tough
call and justify price, focus on
the levers that we know will
help your brand. Be unique
and purposeful, keeping in
mind your perceived price
and actual price in the market.
Now, more than ever, you
need to tune into competitor
actions and performances to
keep a finger on the pulse of
fluctuating category
dynamics, so you can stay
ahead of the game through
the crisis and upon recovery
Arm your brand with both a
short-term and long-term plan,
consumers’ attitudes and
behaviors are changing and
some of these changes will
endure – understand how to
mitigate temporary changes and
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

81
Finally, 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

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We 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

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See you soon..
In the meantime, stay safe

Kantar Indonesia
April 14, 2020