The low-tar cigarettes were launched last year to compete with rival Sampoerna’s mild cigarette brands that dominate the segment. Gudang Garam has also been incurring losses from its mass-market low margin brands.
Before Cabe Rawit, the Surya Slims account was being handled by DDB. The account was re-pitched in June this year and four agencies including Ogilvy and DDB were invited.
Indonesia is the world’s fifth largest tobacco market. The Surya Slims launch came amid Government plans to limit cigarette production to 240 billion sticks by 2010.