Gillette Case Study Hbr
Division A Group 5
Gillette’s Marketing Strategy for Indonesia
Executive summary
The analysis has been done to achieve the country manager, Chester Allan’s objective to increase the market share by 19% through identifying the new customer segments, and increase brand loyalty. The problems faced while achieving the objective are as follows: * The rural population in Indonesia is unaware of the modern shaving trends and therefore do not add to the total sales of the company. With time, when the urban market will get saturated, the rural market will become the only option for the company to expand their sales. Therefore, the company has to find some means to penetrate and increase the awareness among the rural population. * The awareness of the Gillette brand is high among the urban population but not many use it regularly. Even though a higher percentage of population has tried the brand but not many have been converted as loyal customer. * The frequency of shaving is too low among the Indonesian population as compared to other countries. * Gillette’s major competitors are imported lower end brands, which come from Eastern Europe and China. Gillette’s prices are sometimes too high as compared to its competitors. * The distribution and transportation system in Indonesia are not suitably developed. There is no direct control and profit from the distribution system due to the government regulations. The transportation and logistics channels are not reliable and therefore, inventories have to buffer in larger quantities.
The company has to expand into the untapped territories in order to stay as a leader. Company has following options to increase its growth: * Spread the awareness among the rural population on shaving and convince them to shave them for the first time. * The number of incidences of shaving among the existing customers should be increased to increase rate of purchase of the products. * The company should target
Gillette’s Marketing Strategy for Indonesia
Executive summary
The analysis has been done to achieve the country manager, Chester Allan’s objective to increase the market share by 19% through identifying the new customer segments, and increase brand loyalty. The problems faced while achieving the objective are as follows: * The rural population in Indonesia is unaware of the modern shaving trends and therefore do not add to the total sales of the company. With time, when the urban market will get saturated, the rural market will become the only option for the company to expand their sales. Therefore, the company has to find some means to penetrate and increase the awareness among the rural population. * The awareness of the Gillette brand is high among the urban population but not many use it regularly. Even though a higher percentage of population has tried the brand but not many have been converted as loyal customer. * The frequency of shaving is too low among the Indonesian population as compared to other countries. * Gillette’s major competitors are imported lower end brands, which come from Eastern Europe and China. Gillette’s prices are sometimes too high as compared to its competitors. * The distribution and transportation system in Indonesia are not suitably developed. There is no direct control and profit from the distribution system due to the government regulations. The transportation and logistics channels are not reliable and therefore, inventories have to buffer in larger quantities.
The company has to expand into the untapped territories in order to stay as a leader. Company has following options to increase its growth: * Spread the awareness among the rural population on shaving and convince them to shave them for the first time. * The number of incidences of shaving among the existing customers should be increased to increase rate of purchase of the products. * The company should target