Stella Bella; Umul Hikmah (Imung); Willy Stella Bella; Umul Hikmah (Imung); Willy AndresenAndresen

(20120117020; 20120117028; (20120117020; 20120117028; 2012011703320120117033

Integrated Integrated MarketingMarketing

CommunicationsCommunicationsA Proposal Presentation A Proposal Presentation

“ Smoking is a rite of passage here, if you don’t smoke, its like you’re not Indonesian.” office of clerk Andre, 23

(http://www.guardian.co.uk/world/2012/mar/22/indonesias-smoking- epidemic)

What’s On the Presentation

Background – Cigarette Industry

A brief on Mild Cigarette Players

Clas Mild – SWOT and Existing Marketing Program

Proposed IMC Objective & Strategies

Proposed IMC Program and Implementation

Interesting Facts about Interesting Facts about CigarettesCigarettes• Cigarettes are the 2nd largest household expenditures

in Indonesia after food

• The industry generates $7bn (£4.4bn) in revenue for the Indonesian government every year (source:

(http://www.guardian.co.uk/world/2012/mar/22/indonesias-smoking- epidemic)

• 57 million smokers in Indonesia, 5% of them are women

• 3rd top of the world for total numbers of smokers (Source: WHO)

RegulationRegulations in s in IndonesiaIndonesia

• Smoke Free Places

• Restriction in Tobacco Advertising, Promotion and Sponsorship

• Tobacco Packaging and Labeling

• Tobacco Control Legislation

Tobacco Companies Market ShareTobacco Companies Market Share

Mild Cigarette History in Mild Cigarette History in BriefBrief

•Mild cigarette did not exist in Indonesia until 1989When A Mild was born

•Mild cigarette was considered ‘not macho’ and only gained popularity years after its first launched

•Mild cigarette market increased while in general cigarette – SKM market is down

•2% Average total growth rate market of mild cigarette per year• •20% of total national market of all kind of cigarettes

Source: (GAPPRI, Gabungan Perserikatan Pabrik Rokok Indonesia, 2009)

Trend in Marketing Trend in Marketing communication strategies communication strategies adopted by MILD’s playersadopted by MILD’s players

• Word ‘mild’ as identity, except for LA Light

• White as dominant color of packaging

• Targeting youth and young adult as users

• Sponsoring music and events

• Using ‘unusual’ tag line and English

Mild Main PlayersMild Main Players

Comparison factors

A mild LA lights Star Mild Clas Mild

Year of launch

1989 1997 2003

Company PT. HM Sampoerna

PT. Djarum PT. Bentoel Prima

PT. Nojorono Indonesia

Target audience

A-B class B-C class At first B-C classNow A-B Class

Tagline Strong brand activation, contains social issues

“Enjoy aja” “Lower than Low”

“Clas Mild is Today” “Today’s Spirit”

Selling price Rp. 11,000 Rp. 11,500 Rp. 10,000 Rp. 10,000

Market share in mild category

44% 3.4% national market share

17%

Promotional campaigns

Clas Mild Existing marketing Clas Mild Existing marketing eventsevents

Clas Mild Existing marketing events

Ads expenses

Brands Company Promotional Budget (RP)

A Mild HM Sampoerna 144, 16 M

Class Mild PT.NTI 61,63 M

Star Mild Bentoel 58.89 M

LA Light Djarum 57,07 M

U Mild HM Sampoerna 50.06 M

X Mild Bentoel 41,84 MYear:2005

IMC IMC ObjectivObjectiveses

• Maintain brand awareness, perceived image and perceived quality

• Strengthen brand preference • Achieve more market share • Maintain the position as the second place in

mild cigarette market

• Upscale the target audience to A-B class

IMC ObjectivesIMC Objectives

• Primary Target market: Male age Primary Target market: Male age 18-2518-25

• Secondary Target market: Male Secondary Target market: Male age 26-35age 26-35

• SES : A-B classSES : A-B class• Characteristic of the target market:Characteristic of the target market:

Young urbanEducated & SmartProfessionalBoldAdventurousPossess ‘can do’ attitudeInfluencerAppreciate quality and good tasteExpressive

The purpose of this Marketing Communication message is to convince young urban, male and female aged 19-35, aware of taste and life style, that Clas Mild is the hip, cool and smart choice of cigarette because it offers premium quality of LTLN cigarette. It represents young spirit of being smart, bold, adventurous and possessing ‘can do’ attitude

The tone of message will be: young, energetic, active, smart, modern, creative, on fire

IMC StrategiesIMC Strategies1. 1. No change in logo and tag line 2. 2. Continue existing

communication initiatives soundsation soundsation and clasensation clasensation 33. Create more brand buzzbrand buzz to maintain the brand presence

through various adplacement adplacement 4. 4. Connect to the youth to

create brand awareness brand awareness through sponsorship programs sponsorship programs 5. 5. Maintain the loyalty of Clas Mild community and get

numbers of new loyals by offering promotional programspromotional programs 6. 6.

Connect and communicate brand imagebrand image to target

audience by giving experience of a life time experience of a life time (workshops,

fun & dare adventure) done in mass and EventsEvents 7. 7. Gain

exposureexposure brand buzz through news coverage, word of mouth, community group and social media conversation

IMC Program: Continue IMC Program: Continue Existing Communication Existing Communication Initiatives Initiatives

• No change in logo tag line• new slogan: “ DARE TO MOVE”• soundsation and Clasensation social media• Piggy backing the other program communication using

Clasensation

IMC Program: Ad placementIMC Program: Ad placement

IMC: Brand Buzz to Maintain Brand IMC: Brand Buzz to Maintain Brand Presence through Ad placementPresence through Ad placement

Providing smoking box with exhaust in some malls in Jakarta, Makassar, Palembang, Semarang where the smoker can smoke in the box without make the surrounding air being polluted for the non smoker.

IMC: Brand Buzz to Maintain Brand IMC: Brand Buzz to Maintain Brand Presence through Ad placementPresence through Ad placement

Redesign gardens in Jabodetabek, Jogjakarta, Bandung, Medan, Padang, and Lampung make the trees and bush formed into “CLAS” letter respectively, and putting “CLAS” fountain on the garden.

IMC: Brand Buzz to Maintain Brand IMC: Brand Buzz to Maintain Brand Presence through Ad placementPresence through Ad placement

Ads on the train and bus stop

Limited edition of packaging, size & shape of the cigarette, and flavors

PACKAGING:• Packaging Tin case & Card case• Printed fun facts, riddle and picture perspective on it

TASTE & SHAPE • Different shape – rectangular kick • Different Taste, “Especially Yours” for girls with orange,

strawberry, vanilla and chocolate flavor. For Man, cigarette with coffee and cinnamon flavor

IMC Promotional ProgramIMC Promotional Program

IMC Promotional ProgramIMC Promotional Program

Every purchase of 3 packs Clas Mild can get a free 2 hours parking in the mall in Jakarta ( GI, PI, PP, CP)

IMC Promotional ProgramIMC Promotional Program“ATM” touch screen machine for collecting Clas Mild package, where everybody can create their personal account on “clasensation website”, every package will give them 10 points. •The rewarded points can be used for discount in giordano, discount in ticket price by Air Asia, or movie ticket

•Mass event to communicate and connect with wider target audience. Participants from Java, Bali, Sumatra and Sulawesi are taking part in program skill/experience workshops and activities offered at the same time/date

•Venues: Yogyakarta, Bandung, Medan, Padang, Lampung, Jabodetabek, Bali, Makassar, Surabaya

•Offer special experience that is fun, adventurous, educative and meaningful. It is in a form of act, workshop, learning experience, adventure experience

•Connect the buzz from people who join the event to clasensation website

•Opening event by Flash MOB in all venues

IMC Program: Mass EventIMC Program: Mass Event““Experience Your Spirit with Clas MildExperience Your Spirit with Clas Mild””

Workshops Physique Adventure Specialties

ComicPhotography

WritingPaintingJuggling

Presentation/MC-ing

Modern DanceSalsa Dance

RunningTheater

MuaythaiCapoera

Wall ClimbingHiking

Sky DivingDivingCaving

Snorkeling

DJ-ingMagic Class

GolfingShooting-

RangeArcheryGamelan

IMC Mass Event: IMC Mass Event: Experience Your Spirit with Clas MildExperience Your Spirit with Clas Mild

Experience Your Spirit With Experience Your Spirit With Clas MildClas Mild

The program is expected to give Clas Mild more exposure through news coverage (buzz), community group which contains of (mostly) youth, and social media conversation among young people (will be read by youth as well)

IMC: Communicate and Maintain brand IMC: Communicate and Maintain brand image through Eventimage through Event

On Clas Mild Anniversary Celebration: Releasing Balloons on the daylight in HI and releasing lampions to the sky at night time in Ancol

IMC Program: Event Clas Mild IMC Program: Event Clas Mild Day OutDay OutAnother strategy to keep the brand in the mind of Another strategy to keep the brand in the mind of targettarget

Day out is ‘jalan jalan/ bersepeda/treasure Day out is ‘jalan jalan/ bersepeda/treasure hunt/dance on the street/ Nonton Bola hunt/dance on the street/ Nonton Bola Bareng Bareng Sponsored by Clas Mild, targetting Sponsored by Clas Mild, targetting community groupscommunity groups

IMC Program: Connect to the Youth to IMC Program: Connect to the Youth to Create Brand Awareness Create Brand Awareness

through Sponsorship Programthrough Sponsorship Program

Clas Mild Friendly Match CompetitionRoadshow sponsoring sports groups to schools or universities where they go on friendly competition with international and local basketball and football professional players: NBA, MU, Liverpool, Local groups

““Clas Mild – Clas Mild – Young InventorYoung Inventor””Competition forCompetition forInnovative Invention Innovative Invention

IMC Program: Connect to the Youth to Create Brand Awareness IMC Program: Connect to the Youth to Create Brand Awareness through Sponsorship Programthrough Sponsorship Program

IMC Program: Connect to the Youth to Create IMC Program: Connect to the Youth to Create Brand Awareness Brand Awareness

through Sponsorship Programthrough Sponsorship Program

Group Competition on IMC ideas for Clas Mild •To generate fresh ideas from young groups•Gain intense involvement and ownership from the participants group of university students•To find and accommodate fresh ideas from TA•Use WOM as vehicle for brand awareness

IMC Program: Brand Buzz through mobile social networking game

Four SquareCheck-in: use of mobile devices’ GPS and the Foursquare app to announce their presence at location. Users check into any given location more than anyone else become the “mayor”

Badges: users can earn various badges for check-ins and tasks completed Points: Foursquare users can earn a variety of points for their check-ins. They play against their friends and geographic destinations each week to see who can earn the most points

IMC Program: Brand Buzz through mobile social networking game

How to game: •Co-branding with 7-11. Lawson, Alfa Mart as destination for Clas Mild Four Square game. •Participants will use GPS to report their presence at location, unlock the badge, and add points for purchase of Clas Mild at the location•Participants complete required number of visits and points become mayor of Clas Mild get a chance to win “Dare to Move Trip” to exotic and adventurous destination in Indonesia

Program ScheduleMonths Events

January Trees & Fountains forming Clasmild

February Cycling & watching soccer (every Saturday)

March Train & Bus ads and Tin case & Card case

April Foursquare program

May Releasing balloons & lampions

June ATM

July Workshops

August Free parking

September Roadshow sponsoring sports

October Smoking box with exhaust

November Different cigarette shapes

December Different tastes

IMC Budget estimationIMC Budget estimation

THANK YOU

http://www.tobaccocontrollaws.org/legislation/country/indonesia

http://finance.detik.com/read/2012/01/25/071618/1824036/1036/harga-rokok-naik-terus-pedagang-bingung

http://202.59.162.82/cetak.php?cid=1&id=4552&url=http%3A%2F%2F202.59.162.82%2Fswamajalah%2Fsajian%2Fdetails.php%3Fcid%3D1%26id%3D4552

http://www.indonesiafinancetoday.com/read/27023/Penjualan-Rokok-Mild-Tumbuh-Tertinggi

http://www.euromonitor.com/tobacco-in-indonesia/report

(http://www.guardian.co.uk/world/2012/mar/22/indonesias-smoking-epidemic)

http://www.thejakartapost.com/news/2012/09/17/text-your-say-60-million-male-smokers.html

Emerging markets economic briefings: Tobacco producers roll with the times. Oxford Business Group, 2009 July 2003; 110. Available from http://www.oxfordbusinessgroup.com/weekly01.asp?id=4534

SWA edisi 08/2006, 20 April 2006 http://202.59.162.82/swamajalah/sajian/details.ph

p?cid=1&id=9868&pageNum=2 Google image

References