blog




  • Essay / Gillette Indonesia Case - 1403

    Summary StatementGillette should work proactively to achieve its overall vision of being a global leader in the Indonesian shaving market by targeting 30% growth. This can be achieved by adopting an aggressive marketing strategy in these areas, namely: increased supermarket penetration, targeting the hitherto untapped rural market and product repositioning. Situation AnalysisBackground: Gillette is poised to capture 50% market share in Indonesia and market expansion is a priority. priority. However, personal care products are considered a luxury by many. Business: A global leader in consumer product categories like blades and razors, Gillette aims to expand its business operations and dominate every market in which it operates. In Indonesia, where the incidence of shaving is relatively low, it faces challenges in achieving its growth targets. Competition: It faces direct competition from low-end double-edged blades manufactured by companies like Tatra and also disposable products manufactured by Bic etc. Indirectly, wet and dry knives are potential competitors because they are used by a large portion of the shaved population. Collaborators: Collaborators are distributors, wholesalers, retailers and supermarket chains. It deploys 23 distributors spread across key provinces. Relationship management, dues collection and working capital flows are key concerns in distributor relationships. Consumers: Most of today's consumers fall into the category of "urban men over 18 years old." Students and new entrants to the workforce are pioneers and are influenced by Western care habits. Market Size Table 2 shows that in 1995, approximately 13 million people in Indonesia used Gillette blades in both urban and rural areas. And Table 3 estimates the total market available to Gillette. Taking into account local religious customs and the concept of shaving, it can be deduced that at least 15 million (20% out of 72) are potential customers of Gillette in Indonesia. This huge untapped market suggests that more effort needs to be put into Gillette's marketing. Alternatives Proposed changes in the distribution channel Option 1: Reduce the number of intermediaries in the distribution channel. (Rejected) Current chain: Manufacturer – distributor – wholesaler – retailer. Each intermediary adds their markup to the cost and therefore, by the time the product reaches the consumer, it becomes relatively expensive. However, in the past, alternative distribution strategies have failed to meet consumer needs. The wide geographic distribution of the target population, lack of delivery service technologies and immature market add to the need to maintain the status quo. Option 2: Transmit knowledge to salespeople about optimal sales strategies..