Comparison between Gudang Garam Strategic Partnership (GGSP) and Sampoerna Retailer Community (SRC) programme details
SRC | GGSP | |
Length of contract | 6 monthly or annually | 6 monthly or annually |
Amount of contract | IDR 700 000/US$49.29–IDR 750 000/US$52.84 | IDR 600 000/US$42.46–IDR 750 000/US$52.84 |
What the industry provided | Paint 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’ responsibility | Display 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 retailers | Store 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 incentives | Occasionally 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 costumers | Optional 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.