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Compounded Branding

When you think of the brand Cimory, what comes to mind?


Is it the vibrant packaging, their dreamy dairy land in Puncak, the striking Kanzler Nicholas Saputra advertisements gracing billboards and buses, or perhaps the sensational Sisca Kohl 's Tiktok video indulging in Cimory’s Moomoo roll soft-serve ice cream with an over the top golden topping?

Source: Tiktok


We were genuinely impressed by how CMRY has developed its brand in such a short period. Recently, we had the privilege of catching up with the CFO and IR representative, Bharat Joshi, who has been part of the journey since the preparations for the IPO.


According to him, "Branding is a compound process; down the road, consumers tune in, and they gravitate towards the brand they're familiar with."


CMRY has attributed its brand success on digital advertising, making Nicholas Saputra with Kanzler ad their ‘first high budget marketing’ in traditional ads.


They consistently allocate ~20% of revenue to selling and marketing expenses, with a strong emphasis on Key Opinion Leader (KOL) marketing. This involves both macro and micro influencers across Instagram, TikTok, and YouTube.

Source: Sucor Sekuritas, Company

We can get a glimpse of CMRY's successful digital presence compared to its competitor through their instagram followers.


According to Nielsen's Consumer Trust Index, 92% of consumers trust influencer marketing more than traditional advertising, delivering an impressive 11x better ROI compared to conventional marketing channel.


Indonesian brands also have witnessed a substantial rise in their budget allocation for influencer marketing over the years.

Source: INSG

This industry continue to mature over the years, evident in the existence of standardized rate cards and government regulations, particularly regarding influencer income tax (PPh), highlighting the significant capital circulated in this industry.

Through this marketing strategy, CMRY has effectively captured an 80% share of the yogurt market in Indonesia and is now looking to increase its revenue in the consumer food sector.


With a robust presence in modern trade, the company is currently enhancing its position in the general trade channel. We visited two of CMRY's general trade outlets in Jakarta to gather on-the-ground insights on their progress.

During our visit, we noted that the best-selling consumer food items are the crispy chicken nugget and ready to eat sausage singles.


Recognizing the strain on Indonesia's purchasing power following the fuel price hike last year, they have rolled out more compact packaging choices for their offerings.


Examples include Crispy Chicken Nugget in a 120g pack, Cimory Yogurt Stick and Singles Sausage. All competitively priced at under IDR 15,000!


However, exciting developments are on the horizon as the UMKP is anticipated to rise next year. Effective on 1st January 2024, the precise details will be disclosed on November 30th.

Source: CNN


On a side note, a noteworthy aspect of CMRY's revenue stream, constituting ~10% and steadily expanding, is their direct sales division, Miss Cimory.

Source: Company


Launched in 2013 with a mere 3 members, it has evolved into a flourishing community, now comprising over 5000 active agents and a network of 230 kiosks (each kiosk averaged IDR300-500 mn turnover monthly). As a comparison, Yakult has a similar sales program, and it took them 10 years to reach its current ~4000 agents.


Crafted as a CSR program to motivate mothers managing households with children, it offers a chance to generate additional income through flexible working hours. These individuals constitute CMRY's target market and have proven to be an effective sales channel.


In summary, our expectation is that CMRY will continue to compund their branding through targeted digital marketing and crafting products tailored to its community, thereby securing more market share and reaching the 50% revenue contribution target for consumer food next year.


Read our full report here:


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