Indonesia’s Smartphone

Market

2014Omnibus Popular Brand Index

Date: October 2014

A. Detail findings

1. Popular Brand Index

2. Brand awareness

3. Expansive

4. Last Used

5. Future Intention

6. Switching

7. General Information

2

A. Detail findings

1.1. Popular Brand Index Concept

POPULAR BRAND INDEX (PBI)

Top of Mind

(TOM)

Expansive

Last Used

Future Intention

𝑃𝐵𝐼 = 𝑤1 ∙ 𝑇𝑂𝑀 + 𝑤2 ∙ 𝐸𝑥𝑝𝑎𝑛𝑠𝑖𝑣𝑒 + 𝑤3 ∙ 𝐿𝑎𝑠𝑡𝑈𝑠𝑒𝑑 + 𝑤4 ∙ 𝐼𝑛𝑡𝑒𝑛𝑡𝑖𝑜𝑛

Additional Information :

• Top of Mind (TOM) = First brand mentioned by respondents.

• Expansive = Scope and spread of brand.

• Last Used = Total purchase or last used brand in past 3 months.

• Future Intention = Consumer intention to purchase brand.

Brand is one of the important company assets and is alsoconsidered as identity of the company. Brand or trademark is aname or symbol representing a particular product or service and itgives a psychological meaning or association.

Moreover, brand is also a promotion tool where this helps toreach out to popularity or people awarenss that eventuallyinfluence consumers’ behaviour.

In order to improve organizational performance, branddevelopment should be evaluated. For this purpose, W&S Groupconducted a PBI (Popular Brand Index) concept development wherethe measurement is analyzed by using 4 parameters - Top of Mind,Expansive or brand expansion, Last Used or well known as Marketshare and Future Intention.

Below is the calculation/formula to get the PBI score of acertain brand.

3

A. Detail findings

1.2. Popular Brand Index Results (PBI)The PBI score below is determined by using Internet Sampling (Online Panel) methodology and 1,859 of

Nusaresearch’s propietary managed panel (W&S Indonesia). Below is the PBI score for Smartphone Category:

The Incidence Rate of Smartphone (the frequency of smartphone users in the past 3 months) is at 60.0%,calculated from W&S Indonesia panel population.

Samsung is the most popular smartphone in

Indonesia with highest PBI score of 51.6, followed by

Blackberry on second placewith PBI score of 8.7.

Rank of popular

Smartphone PBI IR

1 Samsung 51.6

60.0%

2 Blackberry 8.7

3 Nokia 6.6

4 Sony 6.1

5 Lenovo 5.0

6 Smartfren 3.6

7 Oppo 3.3

8 Iphone / Apple 3.0

9 Advan 2.4

10 LG 1.9

11 Evercoss 1.8

12 Asus 1.7

13 Mito 0.9

14 Acer 0.9

15 HTC 0.5

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A. Detail findings

1. Popular Brand Index

2. Brand Awareness

3. Expansive

4. Last Used

5. Future Intention

6. Switching

7. General Information

5

A. Detail findings

2.1. Brand Awareness – Top Of Mind

n Sample : 1,115

Top of Mind (TOM) is one of the important parameters of PBI that is calculated to measure consumers awarenesslevel toward a certain Smartphone brand. TOM helps a company to understant the level of popularity of theirproduct/service. The first brand mentioned by respondents and spontaneously comes to their mind when talking aboutSmartphone brands are: Samsung (52.9%), followed by Blackberry (10.0%) and Nokia (7.4%).

This results explains that Samsung is a highly recognised Smartphone brand in Indonesia as half of the surveyedrespondents was reported to answer Smartphone as the first brand that first comes to their mind.

52.9%

10.0%7.4%

5.8% 5.1% 4.2% 3.6%1.9% 1.8% 1.4% 1.0% 0.8% 0.7% 0.7%

Samsung Blackberry Nokia Sony Iphone /Apple

Lenovo Smartfren Oppo LG Advan Asus Evercoss Mito Acer

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A. Detail findings

2.2. Brand Awareness

The chart below signified a very clear difference between Aided score and Unaided score (brand recall) becausethere is a quite significant difference between the average score of Unaided Awareness (22.6%) and Aided Awareness(31.2%). This may caused byan overwhelming numbers of Smartphone brands in Indonesia market, thus the brands arenot easily remembered by the consumers unless the smartphone they are currently using or old brand. However, thetwo newcomer smartphone brands – Lenovo and Oppo – has reached the highest Total Awareness score that competewith other old Smartphone producers.

86.0%

30.7% 33.7% 34.4%23.1%

11.2%20.8%

30.2%

11.5%23.7%

7.1% 6.9% 7.5% 3.8% 8.3%

11.2%

40.3% 37.9% 31.5%40.4%

37.5%

43.9%31.7%

31.7%

33.6%

28.3% 28.7% 24.7%25.9% 21.2%

97.2%

70.9% 71.7%65.9% 63.5%

48.7%

64.7% 61.9%

43.2%

57.3%

35.3% 35.6%32.2% 29.7% 29.4%

Samsung Blackberry Nokia Sony Lenovo Smartfren Oppo Iphone /Apple

Advan LG Evercoss Asus Mito Acer HTC

Unaided Aided Awareness

n Sample : 1,115

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A. Detail findings

1. Popular Brand Index

2. Brand Awareness

3. Expansive

4. Last Used

5. Future Intention

6. Switching

7. General Information

8

A. Detail findings

3. Expansive

Expansive parameter is calculated to get thelevel of brand spread of smartphone product thatcan be easily found anywhere. This researchfinding shows that Samsung is in the first place(67.0%) and Blackberry (10.2%) and Nokia (6.3%)are found to be the Smartphone brands that areeasy to find in many places. This explains thatSamsung, Blackberry and Nokia have moreadvertisements in Television, Billboard, Internetand many other forms of advertising media.

However, in conclusion, Samsung isrecognised as the leading smartphone brand interm of Expansive aspect/brand spread.

67.0%

1.2%

10.2%

1.3%

6.3%

1.9%

2.2%

2.0%

2.1%

2.0%

n Sample : 1,115

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A. Detail findings

4. Last Used

Last Used is determined by calculating therespondents percentage who use Smartphone inthe last 3 months. Samsung, Blackberry andLenovo are the three most popular/preferred brandof smartphones which account for 40.9%, 9.6%,and 7.5%, respectively. This is counted from Juneto August 2014.

This is mainly caused by the high score oftheir Awareness level. Interestingly, Lenovo, as anew player – has reached the highest number ofusers in a short period. On the other side, Oppo –that has higher score of Awareness level thanLenovo – has less users than its competitor.

40.9%

2.4%

9.6%

3.1%

7.5%

3.7%

6.7%

3.8%

6.5%

6.4%

n Sample : 1,115

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11

A. Detail findings

5. Future Intention

Future intention level is determined by thenumber/percentage of the surveyed respondentstoward the desired smartphone brand in the future.The level of future intention is thus measured fromthe Loyal respondents and Switching respondents.

Samsung remains in the first place as themost desired smartphone (48.5%), followed bySony (9.1%) and Oppo (6.7%). ASUS (3.4%) andLG (2.2%) smartphone are among the top 10 mostdesired smartphone although these two brandshave quite low PBI scale. This can be concludedthat these two brands are potentially capable toenter Indonesia’s smartphone market.

48.5%

2.2%

9.1%

2.2%

6.7%

2.7%

6.5%

3.4%

5.9%

5.0%

n Sample : 1,115

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A. Detail findings

1. Popular Brand Index

2. Brand Awareness

3. Expansive

4. Last Used

5. Future Intention

6. Switching

7. General Information

13

A. Detail findings

6. Switching 6.1. Future preferred Smartphone

59.9%

40.1%

Loyal

Switch

39.2%

10.8%

10.2%

7.6%

6.6%

5.1%

4.9%

3.1%

2.4%

2.2%

2.1%

1.6%

1.2%

1.2%

Samsung

Sony

Oppo

Nokia

Lenovo

Asus

Blackberry

LG

Advan

Smartfren

HTC

Acer

Xiaomi

Evercoss

n Sample : 657* Relative to the switching-respondents

n Sample : 1,115

The research finding shows that 59.9% of 1,115 respondents reported that theyare interested in switching to different smartphone brands. 39.2% of those respondentswho would consider switching to new smartphone brand prefer to use Samsungsmartphone. The following future preferred smartphone brands are Sony (10.8%) andOppo (10.2%).

In conclusion, the above pie chart shows that there are 40.1% loyal respondentswhere they do not have intention to switch to other smartphone brands.

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40.9%

9.6%

7.5%

6.7%

6.5%

6.4%

3.8%

3.7%

3.1%

2.4%

23.5%

3.0%

3.9%

6.5%

4.6%

1.3%

1.4%

0.1%

0.7%

6.1%

15.9%

7.5%

4.9%

4.0%

5.1%

5.5%

2.5%

2.5%

2.3%

1.8%

A. Detail findings

n Sample : 1,115

Samsung

Blackberry

Lenovo

Sony

Nokia

Smartfren

Advan

Iphone / Apple

Evercoss

Oppo

Switching Out

Last Visited

Switching In

It can be seen that Blackberry, Lenovo,Nokia, Smartfren, Advan, Iphone, Evercosshave higher Switching Out percentage than itsSwitching In percentage. This means that thesesmartphone brands will potentially lose theircurrent users as much as the difference pointbetween Switching Out and Switching Inpercentage.

On the other side, Samsung, Sony andOppo was reported to have higher Switching Inpercentage than its Switching Out percentage.The difference percentage between Switchingin and Switching Out explains the potentialincreased number of users.

6.2. Switching In and Switching Out

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A. Detail findings

1. Popular Brand Index

2. Brand Awareness

3. Expansive

4. Last Used

5. Future Intention

6. Switching

7. General Information

16

A. Detail findings

7.1. Media routinely accessed in the past 3 months

n Sample : 743

96.1%

83.9%

50.0%

33.5%

27.0%

20.7%

Internet (Online news, social media, online newspaper, online magazine,

etc)

Television

Newspaper (printed media)

Radio

Magazine (printed media)

Tabloid (printed media)

Out of 717 surveyed respondents, it wasfound that 96.1% are routinely accessing internet.Television is also being routinely watched by 83.9%repondents.

In printed media category, Newspaper(50.0%) is found as the most frequently accessedmedia by the respondents.

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A. Detail findings

7.2. Places to access internet in the past 3 months

n Sample : 717

Out of 717 surveyed respondents who access internet,it was found that 63.2% access internet at home and22.7% access internet at the office.

Home, 63.2%

Office, 22.7%

Free Wi-fi spot, 5.3%

School/university or other education institution, 3.1%

On the go,

2.8%

Internet cafe, 2.0%

Others, 1.0%

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A. Detail findings

7.3. The Most Attractive Ads element on Internet

n Sample : 717

Out of 717 surveyed respondents who access internet,it was found that 40.9% are interested in video advertising.This may be caused by the advantages of video ads thatare delivered in a form of music, sound and moving image(more real), more eye catching and much clearer indescribing the products than other ads types.

Moreover, Online banner ads is also preferred by26.9% of the respondents.

Video Ads

40.9%

Online banner26.9%

Gif Animation

19.4%

Text Ads5.9%

Pop-up Ads

5.0%

I do not know2.0%

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A. Detail findings

7.4. Advertising Effects on influencing product usage decision-making process

• Menggunakan skala 0.00 – 100.00. Jika skor efektivitas iklan semakin tinggi,maka akan memberikan pengaruh yang besar kepada masyarakat.

Mean Score using scale 0.00 – 100.00, which:

0.00 - 24.90 : Very small effect 62.50 - 74.90 : Quite influential

25.00 - 49.90 : Small effect 75.00 - 87.50 : Big influential

50.00 - 62.50 : Neutral 87.50 - 100.00 : Very large influential

Ads Effectiveness Ads Mean Score Impact

Ads Effectiveness = Mean Score Ads * IR Media

51.0756.97

33.97

19.18

Television Internet PrintedMedia

Radio

81.02 79.53 78.8976.19

Television Internet PrintedMedia

Radio

Advertising is an important point that affect many things significantly. The product quality is not necessarily a mainconsideration of people choosing a product. The advertising created may change the people perception toward aparticular product after being exposed to its advertising. A good advertising and quality products are not necessarilyrecognized by people. Thus, there is a need for an industry to gather information about effective advertising placement.

The research finding below shows that an advertising on internet (effectiveness score of 56.97) and on television(effectiveness score of 51.07) give a huge effect in influencing respondents decision making. This recommends anindustry/company to place an ads on those two form of advertisings. The charts below explains that the higher theeffectiveness score, the higher the possibility to have more users/visitors. In conclusion, the higher the ads effectivenessscore, the higher the ads effects on influencing product usage decision-making process.

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B. Respondent profile

Respondent Demography

21

B. Respondent profile

Monthly Household Income

56.7% 43.3%

Age Group

n Sample : 1,115

Gender

2.0%

3.0%

3.9%

10.9%

13.7%

10.2%

14.5%

11.6%

12.2%

12.5%

5.5%

Over IDR 40,000,000

IDR 30,000,001 - IDR 40,000,000

IDR 20,000,001 - IDR 30,000,000

IDR 11,000,001 - IDR 20,000,000

IDR 8,500,001 - IDR 11,000,000

IDR 6,500,001 - IDR 8,500,000

IDR 4,500,001 - IDR 6,500,000

IDR 3,500,001 - IDR 4,500,000

IDR 2,500,001 - IDR 3,500,000

IDR 1,500,001 - IDR 2,500,000

Less than IDR 1,500,000

118

311

241

445Under 17 years old

17 - 19 years old

20 - 24 years old

25 - 29 years old

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