BRAND REGISTRATION AND USAGE IN SELECTED FMCG MARKETS IN INDONESIA 1914 TO 2007: A STUDY OF BRANDS AND BRANDING IN A TRANSITIONAL ECONOMY

Tjiptono, Fandy (2010) BRAND REGISTRATION AND USAGE IN SELECTED FMCG MARKETS IN INDONESIA 1914 TO 2007: A STUDY OF BRANDS AND BRANDING IN A TRANSITIONAL ECONOMY. Phd thesis, UAJY.

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Abstract

This study aims to examine characteristics associated with brand longevity in a developing country. The research context was six fast moving consumer good markets (i.e, cigarettes, soy sauce, coffee, tea, toothpaste, and shampoo) in Indonesia during the last century. The five stages of historical method developed by Golder (2000) were adapted as the research approach of the present study. Brand registration and usage was used as proxies of brand longevity. Two databases of brands were developed for two different periods. The first database, the pre-independence (before 1945) period, was compiled from newspaper ads and features, brands reported in previous studies, and brands identified from an advertisement exhibition catalog. The second database, the 1950-1969 period, was compiled by manually identifying each registered brand in the six studied product categories listed in the Addendum to State Gazette. These two databases were cross-checked with the current brand registration database (the online IPR database in 2007) and product registration databases at the National Agency of Drug & Food Control (the NA-DFC) and the Customs and Excise Directorate. In addition to the identification of longevity patterns across product categories and time periods, a series of logistic regressions were conducted on several characteristics contained in the 1950-1969 period database. The dependent variable was brand survival in 2007. A brand is considered as survived if it was re-registered at the Directorate of Trademark and/or registered at the NA-DFC (or the Customs and Excise Directorate). The independent variables were brand age (year of registration), brand ownership (local versus foreign), brand scope (registered for only one category versus for more than one category), competitive intensity (the number of registered brands in the same product category in the same year), and an interaction variable (brand ownership x brand scope). Brand survival rates were found to vary across product categories and time periods. Different product categories have different patterns of longevity. The longer the time period, the lower the overall survival rates. The logistic regression results indicated that brand ownership and brand scope were significantly associated with brand longevity. Foreign brands and mono brands were found to have better survival likelihood that local brands and multi-brands. However, the result is inconclusive. It suggests that brand registration is only part of the story. There are other characteristics needed for further examination.

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