Page 85 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

Top 50 BRAND PROFILES
COMPANY Hanjaya Mandala Sampoerna Tbk PT BRAND VALUE US$ 1,640 million HEADQUARTERS Jakarta INDUSTRY Tobacco YEAR FORMED 2005
Budget-priced cigarette appeals to low-income earners
U MILD is a brand of machine-rolled cigarette produced by Sampoerna, the tobacco giant behind the premium A MILD brand. U MILD is the more afordable of the two, so tends to appeal to young adult smokers
on lower incomes. U MILD’s slogan changed in 2015, to “Cowok U MILD Lebih Tahu”, or
“U MILD guys know better”. As in other markets, there are restrictions on the marketing of tobacco products, and advertising is heavily regulated, but spend in this category is signiicant. In fact, tobacco is one of the biggest-spending industries on advertising in Indonesia. Advertisements cannot show the product, the shape
of the product or anybody actually smoking, and TV advertising is only permitted during the late night and early morning. Philip Morris International has a majority stake in Sampoerna, and U MILD is sold in Singapore and Malaysia as Sampoerna U. PT HM Sampoerna is listed on the Indonesia Stock Exchange, and PMI is listed on the New York Stock Exchange.
Heritage brand still strong despite decline in category
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Gudang Garam is a brand of clove cigarettes known in Indonesia
as kretek. This is a traditional product and tends to appeal
to older smokers. Hand-rolled
and machine-rolled varieties
are produced, with the more expensive, hand-rolled product seen as premium, and the machine-produced cigarettes having a more mainstream audience. Demand for hand- rolled kretek has been declining in recent years, but Gudang Garam Gold hand-rolled cigarettes were successfully launched in 2014, with black and gold packaging and premium positioning. As in most
markets, advertising of tobacco products is highly restricted, but television advertising at selected times of day is still possible in Indonesia, though exactly what can be shown is limited. The brand takes its name from the parent company, which has a stable of successful cigarette brands.
Gudang Garam cigarettes are exported to Malaysia, Brunei, Japan, Australia, Germany, the U.S., and the Netherlands. The parent company is listed on the Indonesia Stock Exchange but remains majority-owned by the Wonowidjojo family, which founded the business.
GUDANG GARAM
COMPANY Gudang Garam Tbk PT BRAND VALUE US$ 1,625 million HEADQUARTERS Kediri
INDUSTRY Tobacco
YEAR FORMED 1958