Gilete Indonesia
Gillette Indonesia Case Study
Introduction
Gillette has been the world’s leader in blades and razors for more than one hundred years. Chester Allan, country manager in Indonesia, predicts the 1996 sales and growth of the company in his marketing plan. He expects growth of 19 % in the blade sales-from 115 million in 1995 to 136 million in 1996. However, Rigoberto Effio, Gillette Business Director Asia-Pacific, sees more potential in Indonesian market. He knows the growth rates in the other countries in the region, so he believes that in Indonesia the company should look for 25-30% growth. In this case study the Gillette Indonesia will be analyzed in detail, outlining the key issue, providing various options and recommendation and the necessary steps the company should undertake in order to generate a higher growth percentage.
Analysis
Gillette was founded in Boston in 1901. They are recognized world-renowned leader in blade and razors as well as in nine different categories like writing instruments, correction products, men’s electric razors, shaving preparations, oral care appliances, toothbrushes, pistol-grip hair dryers, hair epilators and hand blenders. The company utilizes differentiated marketing strategies by offering distinct products to different people. Manufacturing of Gillette products is prevalent at 50 facilities in 24 countries.
In 1971 they made a market penetration in Indonesia, hoping to boost sales among the local population. The following year Gillette introduced a factory, manufacturing its products, near Jakarta.
Indonesia is situated in south-east Asia, with population of nearly 200 million people, with the majority leaving outside the big towns in rural areas-around 65%. The country has had a stable economic growth of around 7% for the past twenty year. The government is trying to keep the economic progress and growth as well as increasing the incomes of the population, by increasing the foreign investments and the private sector.
Introduction
Gillette has been the world’s leader in blades and razors for more than one hundred years. Chester Allan, country manager in Indonesia, predicts the 1996 sales and growth of the company in his marketing plan. He expects growth of 19 % in the blade sales-from 115 million in 1995 to 136 million in 1996. However, Rigoberto Effio, Gillette Business Director Asia-Pacific, sees more potential in Indonesian market. He knows the growth rates in the other countries in the region, so he believes that in Indonesia the company should look for 25-30% growth. In this case study the Gillette Indonesia will be analyzed in detail, outlining the key issue, providing various options and recommendation and the necessary steps the company should undertake in order to generate a higher growth percentage.
Analysis
Gillette was founded in Boston in 1901. They are recognized world-renowned leader in blade and razors as well as in nine different categories like writing instruments, correction products, men’s electric razors, shaving preparations, oral care appliances, toothbrushes, pistol-grip hair dryers, hair epilators and hand blenders. The company utilizes differentiated marketing strategies by offering distinct products to different people. Manufacturing of Gillette products is prevalent at 50 facilities in 24 countries.
In 1971 they made a market penetration in Indonesia, hoping to boost sales among the local population. The following year Gillette introduced a factory, manufacturing its products, near Jakarta.
Indonesia is situated in south-east Asia, with population of nearly 200 million people, with the majority leaving outside the big towns in rural areas-around 65%. The country has had a stable economic growth of around 7% for the past twenty year. The government is trying to keep the economic progress and growth as well as increasing the incomes of the population, by increasing the foreign investments and the private sector.