The Role of Brand Communication in Building Loyalty in Indonesia’s Bottled Water Market

Abstract

The Indonesian bottled water industry is highly competitive, with over 2,000 brands competing for consumer attention. This study investigates the role of brand communication in shaping brand image and brand preference, and how these factors influence brand loyalty. Brand communication is conceptualized as a multidimensional construct encompassing advertising-promotion, sponsorship-public relations, and corporate social responsibility (CSR). A structured questionnaire was distributed to 380 bottled water consumers across Indonesia using purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test both measurement and structural models. Results show that all dimensions of brand communication significantly enhance brand image and preference. However, brand image alone does not directly influence loyalty; instead, brand preference plays a critical mediating role. The total effect of brand communication on loyalty increases substantially when brand preference is included as a mediator. The findings highlight the strategic importance of designing integrated communication approaches that reinforce brand preference as a pathway to consumer loyalty. Sponsorship and CSR initiatives, in particular, were found to have strong impacts, suggesting that traditional and relational communication forms remain influential in the fast-moving consumer goods (FMCG) sector. This research contributes to the brand communication literature by empirically validating a multidimensional model in an underexplored FMCG context. It provides practical guidance for brand managers in the Indonesian bottled water market to invest in targeted communication strategies that build consumer preference and long-term loyalty.