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  • Essay / Gillette - 976

    The production of hairdressing and hair removal accessories is a constantly expanding and rapidly growing market. The conversion rate of consumers who prefer modern methods over traditional methods is high. Even though Gillette has a significant market share, the plan is to expand further to capture the market where it is lacking, i.e. low-priced economy branded products. The Gillette company established in 1901 in the United States gradually expanded its activities to other parts of the world. and now it is established in almost all countries. Its expansion was facilitated by the combination of commercial and regional operating units. Gillette entered Indonesia in 1972 through a joint venture. Although the Indonesian market experienced very good growth in 1995, there is potential for further expansion in 1996 and beyond. • In 1995, Gillette's market share was 48%. In 1996, the market share should be 50%. • Sales of Gillette blades increased 17% between 1994 and 1995. • In 1995, Gillette sold 115 million blades (100 million of which were double-edged) and total sales of shaving products were 19.6 million dollars. Gillette Indonesia's high-margin products and systems were expected to increase in 1996 to approximately 20% of units. • In 1995, sales in five major urban centers, Jakarta, Bandung, Surbaya, Semarang and Medan, accounted for 60% of Gillette's sales. razor in 1995CompetitionGillette faces 2 types of competition. Direct competition comes from already established low-cost blades available from other companies and indirect from traditional shaving methods. Gillette faced direct competition from local brands, Bic and Schick. In double-edged blades, Gillette faced competition from low-end blades imported from Eastern Europe and China (Tatra, Super Nacet and Tiger). In the disposable products sector, Bic, USA and Bagus, a local brand, were its competitors. But as sales volumes were low, the market was not intense. In high-end products, Gillette faced competition from Schick. Gillette holds 90% market share in the high-end segment. Prices for Gillette products were sometimes four times higher than competing prices. Additionally, Gillette faced indirect competition from substitute products such as wet or dry knives. Besides Indonesia being a growing market, there is a possibility that other players will enter the market in the future. In a competitive market with local brands, Gillette differentiates itself from the competition with better quality and reliability of their products. In addition, more than half of the population surveyed on the incidence of shaving shaves a maximum of 4 times per month..