Short answer

When designing brand strategies for transitional economies, prioritize multi-category registration and consider the competitive landscape and ownership implications for long-term survival.

Field: Innovation & Markets
Source: UAJY Repository (University of Southampton) (2011)
Method: Historical research adapted from a five-stage historical method, incorporating quantitative analysis (logistic regression).
Evidence: Strong effect

In developing markets, a brand's survival over time is significantly predicted by its age, whether it's locally or foreign-owned, its registration across multiple product categories, and the level of competition within its market segment. This innovation & markets research insight is drawn from a 2011 study published in UAJY Repository (University of Southampton). Using Historical research adapted from a five-stage historical method, incorporating quantitative analysis (logistic regression)., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing brand strategies for transitional economies, prioritize multi-category registration and consider the competitive landscape and ownership implications for long-term survival.

Study

Innovation & MarketsHigh ImpactStrong effect

Brand longevity in transitional economies is influenced by ownership, scope, and competitive intensity.

UAJY Repository (University of Southampton) · 2011

Key Findings

01Brand survival rates varied across product categories and time periods.
02Brand age, ownership (local vs. foreign), brand scope (single vs. multi-category registration), and competitive intensity were significant predictors of brand survival.

Application

Design takeaway

When designing brand strategies for transitional economies, prioritize multi-category registration and consider the competitive landscape and ownership implications for long-term survival.

How to apply

When developing a new brand for a market like Indonesia, consider registering it for related product categories from the outset and analyze the competitive intensity of the target market.

Project actions

01When researching a market, look at how long existing brands have been around and what common traits they share.
02Consider how a brand's registration strategy (e.g., for one product vs. multiple) might impact its long-term success.

Method & Evidence

AimTo identify characteristics associated with long-term brand survival in fast-moving consumer good markets within a transitional economy.

MethodHistorical research adapted from a five-stage historical method, incorporating quantitative analysis (logistic regression).

ProcedureThe study compiled two historical brand databases (pre-1945 and 1950-1969) from various sources including newspaper advertisements, previous studies, exhibition catalogs, and official gazettes. These historical databases were cross-referenced with current brand and product registration databases. Logistic regression was then used to analyze the relationship between brand characteristics (age, ownership, scope, competitive intensity) and brand survival in 2007.

ContextFast-moving consumer goods (FMCG) markets in Indonesia (cigarettes, soy sauce, coffee, tea, toothpaste, shampoo) from 1914 to 2007.

Variables

IV["Brand age","Brand ownership (local vs. foreign)","Brand scope (single vs. multi-category)","Competitive intensity"]

DVBrand survival in 2007

Strengths & Limitations

Strengths

+Longitudinal study covering a significant historical period.
+Utilizes multiple data sources for database compilation.
+Employs statistical analysis to identify significant predictors.

Limitations

It can be difficult to find complete historical data on brand registration and usage for all markets.

Reliability & validity

Reliability is supported by the use of official databases and cross-checking. Validity is addressed by using registration as a proxy for longevity and analyzing multiple contributing factors.

Think critically

How might the definition of 'brand survival' be broadened beyond just registration to include actual market share or consumer recognition?

Design Principles

"Brand longevity in dynamic markets is a function of strategic scope, competitive positioning, and adaptive ownership models."

Understanding the factors that contribute to brand longevity is crucial for developing effective market entry and long-term brand management strategies. This insight is particularly relevant for businesses operating in or expanding into transitional economies, where market dynamics can differ significantly from established markets.

What This Means for Your Design

In countries that are still developing their economies, brands that are around for a long time often do so because they are registered for more than one type of product, are owned by local companies, and face less competition.

How to use in your project

1.Use the findings to justify a brand's registration strategy or to analyze the competitive landscape for a new product concept.

Add to My Project

Quick Cite

Paragraph starter

This study's findings suggest that brand longevity in transitional economies is influenced by factors such as brand ownership, registration scope, and competitive intensity. For instance, brands registered across multiple product categories and those facing less competition demonstrated higher survival rates, indicating that a broad strategic scope and careful market positioning are key to sustained market presence.

Source

UAJY Repository (University of Southampton)

Brand registration and usage in selected FMCG markets in Indonesia 1914 to 2007: a study of brands and branding in a transitional economy

journal · 2011

View source

Questions About This Research

What does the research say about brand longevity in transitional economies is influenced by ownership, scope, and competitive intensity?: When designing brand strategies for transitional economies, prioritize multi-category registration and consider the competitive landscape and ownership implications for long-term survival. Evidence: UAJY Repository (University of Southampton) (2011).
Why does "Brand longevity in transitional economies is influenced by ownership, scope, and competitive intensity." matter for design?: Understanding the factors that contribute to brand longevity is crucial for developing effective market entry and long-term brand management strategies. This insight is particularly relevant for businesses operating in or expanding into transitional economies, where market dynamics can differ significantly from established markets.
How can designers apply this research?: When designing brand strategies for transitional economies, prioritize multi-category registration and consider the competitive landscape and ownership implications for long-term survival.
What were the main findings?: Brand survival rates varied across product categories and time periods.. Brand age, ownership (local vs. foreign), brand scope (single vs. multi-category registration), and competitive intensity were significant predictors of brand survival.
What research method was used?: Historical research adapted from a five-stage historical method, incorporating quantitative analysis (logistic regression)..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2011 journal from UAJY Repository (University of Southampton).
What should I do differently in my next project?: When developing a new brand for a market like Indonesia, consider registering it for related product categories from the outset and analyze the competitive intensity of the target market.
What are the limitations?: The study relies on registration and usage as proxies for brand longevity, which may not fully capture market presence or consumer perception. Data availability for historical periods could also be a limitation.