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November 22, 2021
Imagine when your brand’s network of distributing partners and customers is sprawled across 6000 islands! Reaching out to them isn’t really a welcoming task by marketers. And now imagine the mammoth task of CPG brand marketers who not only have to navigate through the populous Indonesian region but also ensure that their marketing strategies work well leading to an increase in overall brand revenue. Did you know that the Indonesian landscape was once largely dominated by small-time retailers? However, with larger CPG brands foraying into the region, the need to establish a strong partnership with distributing retailers became an ideal for marketers.
Amid customers, an instant-gratification culture is now on the rise, thanks to the influence of the internet and social media that addresses their needs with just one swipe. Given that CPG products are purchased frequently, brands offer several rewards, through targeted channels at regular intervals. Therefore, loyalty programs have become the right medium to catch up with this fast-paced trend and meet customer expectations.
In our previous blog, statistics revealed how CPG loyalty has now become a space ripe with opportunities for brands to explore. We also witnessed that brands could run loyalty programs for both customers and distributing retailers. In this blog, let’s take a look at what brands have wowed Indonesians with their loyalty programs, and how brands in the CPG industry have experimented in both D2C and B2B loyalty programs in Indonesia.
To promote the use of Lactogrow, a nutrient supplement powder for toddlers, the multinational CPG company started a loyalty program called the Gro Happy Club, targeted at parents. Through the Grow Happy website, the customers can register and win 250 welcome points. Nestle has enabled online purchases where customers can collect ‘Happy’ points every time they purchase Lactogrow since it’s a frequent purchase by parents. While redeeming their points, customers can choose gifts from a large collection of items including vouchers and toys for children. The website also includes educational and other articles about childcare.
Nestle offers another loyalty program called DANCOW Parenting Rewards. Similar to the Gro Happy Club, the program is built to reward parents who are regular buyers of DANCOW, a milk powder fortified vitamins and minerals for children. Parents can redeem points to get rewards such as home appliances and toys, and even get free pediatrician consultation. Customers can claim points on customer microsite or Whatsapp by submitting codes found in the product.
Frisian Flag, a legacy dairy brand in Indonesia, hosts several activities that engage customers of all ages. While recipe contests are directed towards adults, the company encourages teenagers and young adults to participate in selfie contests on social media. For younger children, the brand offers e-comic and games based on two beloved characters called Zhuzhu and Zhazha. All these contests and games give customers the opportunities to win rewards and stay connected to the brand.
Frisian Flag also has a loyalty program called ‘Primagro Points Mothers and Toddlers’ that offers points and rewards to mothers buying nutrition and milk products for toddlers. Targeting customers who are keen on buying sustainable products, Frisian Flag provides many articles on their websites describing their pledge towards sustainability. In this portal, the brand transparently shares its processes starting from the grooming of cows up to the production of various dairy products.
While launching their chicken-flavored instant noodles Pop Mie, Indofood had chosen to ride the mobile gaming wave. They launched 2 gamified advertisements that involved short and simple games leading customers to win vouchers to buy the new product. The vouchers were easily redeemable and the game was sharable on social media to expand the engagement to more mobile users.
Indofood has also built a tiered B2B loyalty program called Grow Together that supports SME businesses that are particularly dependent on the brands’ products. The members of this program enjoy exclusive benefits including monthly rewards, health insurance, exclusive promotions and a portal to help them with bank funding. The program also assists the SME partner with halal certification that helps their business grow. The loyalty program named the Grow Together program has three tiers – silver, gold and platinum. Members can also use their Boasari Mitra loyalty cards while shopping for Indofood products.
One of the country’s top cosmetic brands, Wardah Beauty encourages the women doing business with the brand to join the Wardah Womenprenuer Community. This B2B loyalty program promises an 18% discount on the highest retail prices on products and free delivery even on minimum purchase. Members can get 1 point for every purchase at IDR 150,000 and 2 points by selling 30 news products. The points can be exchanged for attractive prizes and vouchers. 4 lucky members of the community also stand a chance to win a home appliance or a smartphone through an end-of-year raffle contest.
With almost 85% of Indonesia’s population being Muslim, Wardah is also known to be one of the biggest halal beauty brands in Indonesia. Through its latest marketing campaign ‘Beauty Moves You’, the cosmetics brand has launched a line of products made from sustainable processes. On the D2C front, Wardah has an ecommerce channel where customers can make online orders and receive loyalty points on their transactions. The points can be redeemed in a tender mode on the next transactions.
To strengthen the partnership with more than 400,000 sellers of Coca Colas’s beverages, the CPG giant started a new loyalty app called ‘Klik Toko’. The app enables points’ collection and redemption by B2B partners for distributing Coca-Cola products. The initiative was started to stay in touch with all the distributors, especially during the Covid-19 pandemic. The app gives the partners real-time information and updates from Coca-Cola. The company hopes to introduce newer features on the app to attract more distributors across the country.
Nutricia’s MyNutriclub loyalty program completely focuses on providing a lot of information to parents of young children including immunity, nutrition, growth and development. While enabling points’ redemption for every purchase of Nutrilon, the program also provides other exclusive services for mothers and babies like consultations with experts and access to webinars, podcasts and videos on the early child growth period. The loyalty program portal also offers quizzes to detect the child’s allergies, learning stages, tools like budget calculators and so on to keep customers thoroughly engaged.
We can clearly see how some of the top brands in Indonesia have given importance to customers and partner relationships alike. While digital channels have given brands the opportunity to dive into D2C rewards programs, a fragmented landscape like Indonesia certainly requires companies to nurture their distributors and incentivize them to boost sales growth. In fact, Capillary’s Loyalty+ has been upgraded with additional new features to provide brands more opportunities to reward their partners. Get in touch with our experts to find out more and transform your brand’s digitization journey.
November 22, 2021 | 4 Min Read
Imagine when your brand’s network of distributing partners