Two tobacco retailer programmes in Banyuwangi, Indonesia: a qualitative study

The tobacco retail density in Indonesia is very high, and tobacco companies are creative at promoting their products at point of sale (POS). The study explores the strategies employed by tobacco companies through their retailer programmes in Banyuwangi, Indonesia.

In 2019 we conducted observation and indepth interviews with the owners/keepers of 12 retailers with Sampoerna Retail Community (SRC) signs and 6 retailers with Gudang Garam Strategic Partnership signs placed as store names in front of their stores. We analysed the data to identify key strategies used by each tobacco company.

Gudang Garam promoted more visibility of their own products, while Sampoerna promoted their products in a power wall and also rearranged other products sold in the store to attract more customers. Sampoerna educated their retailers to attract and retain more customers by using schemes such as reward points and coupons. Sampoerna also developed and promoted the use of a mobile application for online sales.

Both programmes promote product and brand display at retailers to create brand loyalty. The SRC mobile application for online sales is potentially attractive to young customers and allows for data collection about retail and customer purchase behaviours that can be used for tailored marketing. Tobacco sales promotion strategies should be strongly regulated. Banning indoor tobacco advertisement, promotion and tobacco display at POS should be encouraged.