Table 2

Comparison between Gudang Garam Strategic Partnership (GGSP) and Sampoerna Retailer Community (SRC) programme details

SRCGGSP
Length of contract6 monthly or annually6 monthly or annually
Amount of contractIDR 700 000/US$49.29–IDR 750 000/US$52.84IDR 600 000/US$42.46–IDR 750 000/US$52.84
What the industry providedPaint store with Sampoerna colour.Lend glass display boxes to retailers.
Lend shelves for any products, lend power wall for Sampoerna product. Sales representatives will place the banner and board on the store.Lend GGSP banner. Sales representatives will place the banner on the retailers. Advertisement tax is paid by Gudang Garam.
Store rearrangement.
Training to improve sales, use of mobile applications and creative marketing system using points and vouchers.
Retailers’ responsibilityDisplay complete types of Sampoerna cigarettes and only Sampoerna cigarettes in the power wall and SRC programme advertisement or promotion.Display complete types of Gudang Garam cigarettes and only Gudang Garam cigarettes in the glass display box.
Make sure store is clean and all merchandise visible to customers.Make sure that GGSP banner is visible and not covered by other advertisements.
Store must not enter into contract with other tobacco companies.
Store must not enter into contract with other tobacco companies.
Benefits felt by retailersStore becomes more popular, more customer for stores, thus more income.GGSP banners allow more costumers to know they sell Gudang Garam cigarettes and thus more customers and income for retailers.
Discounted cigarettes from wholesaler or an occasional bonus pack for every 10 packs purchased by store.Cheaper cigarettes purchased from sales representatives or a bonus of one package for each big bundle (10 packages) purchased.
Availability of mobile communication group for quick information.Quick information on new products and price changes.
Extra cash US$41.98–52.47 annually. Some retailers use this cash to purchase more cigarettes to sell.
Less work for storekeeper as customers pick their own items from shelves, faster service.Banner provided shade for the store.
Be invited to retailers’ gatherings in nice places and availability of mobile communication group for quick information.
Training to improve sales.
Store is neat and organised.
Money, prize or discount redeemable from reward points.
Other incentivesOccasionally gives small tokens of appreciation, such as T-shirts, mobile phones, rice cooker and water dispenser.Occasionally gives small tokens, such as T-shirts, umbrellas, mugs, matches or clocks and birthday gifts for big retailers.
SRC routinely holds a competition among retailers, for example, competition for best store design and best sales.Sometimes holds a competition among retailers, for example, a competition to create wall decoration using empty packages of certain Gudang Garam brand to be placed on the retailers. They invited retailers to a function with free meal and the winner wins a refrigerator, mobile phones or fan.
Other promotion/discount for costumersOptional marketing system such as vouchers system for customers that are linked to store reward points on mobile applications. The vouchers are used for sale of any item at a certain amount, not limited to cigarettes.There used to be a programme for customers to exchange 10 empty packs or more for tokens such as mugs or umbrellas.
Cheaper price during SRC’s anniversary.
  • IDR, Indonesian rupiah.