SQ2012 28-02-78
Gillette Indonesia
Marketing Plan
Table of Contents 1. Executive summary 3 2. Situation analysis 4 2.1. Market summary 4 2.2. Market demographics 4 2.3. Market needs 5 2.4. Market trends 5 2.5. Market growth 5 2.5.1. Competition 6 2.6. SWOT analysis 6 3. Marketing strategy 8 3.1. Marketing objectives 8 3.2. Target markets 8 3.3. Positioning 8 3.4. Marketing mix 9 3.4.1. Product 9 3.4.2. Place 9 3.4.3. Promotion 11 4. Gillette Indonesia: case questions 13
Executive summary
The Gillette Company has effectively entered the razor blade market in the main parts of Indonesia. Even though there is still a lot of potential for growth, it faces stiff competition, as well
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40% of the remaining 15% also shopped frequently in supermarkets.
Political
Since 1965, the president of Indonesia continued to provide continuity and stability. However, in order to define an effective and complex growth plan, a company wishing to be successful needed the president’s support to succeed in the plan.
Behavioural factors
The typical habits of Indonesian shavers were quite different among the population and are listed below. * 40% of shaving men used store-bought blades * 60% of shaving men used dry or wet knives * Number of blades per year: * Regular blade shavers: 20% used 15 blades per year * Occasional blade shavers: 4 blades per year * Additional shaving products used: * 4% used foam or lotion * 25% used soap or water * 12% water alone * 58% dry
Market needs
The Indonesian economy has constantly grown within the last 20 years. However, the shaving market is still underdeveloped compared with Western markets. Hence, Gillette should provide more information to spread widely concept of shaving. Moreover, it should introduce new products to facilitate the introduction of shaving products to non-shavers and increase the frequency of shaving in current shavers.
Market trends
An Indonesian’s average income is much lower compared to the Western world. However,
The article analysis the Paramount’s situation, competition, product positioning, marketing strategy through the U.S. razor market, market segments and consumer behavior and the trends of nondisposable razors and refill cartridges. After the company
The company offered a new product, safety razors and blades, a product of convenience at a reasonable price. Gillette had a few lean years to establish a customer base. To attract new customers Gillette tried advertising by putting his face stamped on the thin razor blades, and then gave away the razor as a free gift. The razor was useless without the blades. The marketing gimmick of “FREE” worked! Gillette gave free razors that then created a demand for the blades. Gillette sold razors in bulk at discounted prices to banks so they could use them as give away when you opened an account, the” Shave and Save” campaigns were huge success. Gillette took it even further when he then sold to the Wrigley’s gum company; packets of coffee, tea, spices, and marshmallows. Gillette sold millions of razors at steep discount to the Army hoping the habits soldiers developed at war
The Gillette Tri-Glide. Finally, a manual razor that provides the efficiency of an electric razor. With this new innovative product, Gillette can revolutionize the way men shave. The Gillette Tri-Glide combines the three step process of shaving into one simple step. The secret lies within the handle of the razor; it contains two separate compartments, one holding the shaving cream and the other holding the aftershave. As you apply pressure to your face, shaving cream exits below the razor. The razor blade glides over the shaving cream, and the aftershave sprays above the razor. Gillette is the leading brand in the wet shave industry; to stay on top, it must update their razors in order to differentiate themselves from competitors and maintain
* Customers: Male consumer products have been trending upward in the last decade. The customer segments are broken up into three areas; social/emotional, involved razor users, and uninvolved or maintenance users. Social/emotional are responsible for 39% of Nondisposable razors, Involved is for 28%, and maintenance users account for 33%. In 2009 consumers razors and replacement cartridges at a higher rate than ever before.
Gillette is an American company founded by King Camp Gillette. It was founded on 1901 and until 1962 it did not have any serious competition. This can be explained by its constant concern for innovation, which follows the belief of its founder, “a successful invention is the one that is purchased over and over again by a satisfied customer”. (Original idea of William Painter)
A group of executives from Paramount Health and Beauty Company (Paramount) sat in a research room intently observing a dozen men shaving on the other side of a two-way mirror. The subjects were testing out Paramount’s newest nondisposable razor, Clean Edge, and discussing the experience. The verdict was extremely encouraging. The majority of men felt it was the closest, cleanest, and smoothest shave they had encountered. All executives at Paramount agreed Clean Edge should be priced in the super-premium segment of the market. However, some executives believed Clean Edge should be launched as a mainstream entry
Synopsis: Gillette has long been known for innovation in both product development and marketing strategy. In the highly competitive, but mature, razor and blade market, Gillette holds a commanding worldwide market share. The peak of its innovation occurred in 2006 with the introduction of the Fusion 5-bladed razor. Today, innovation in razors and blades is thwarted by a lack of new technology and increasing consumer reluctance to pay for the “latest and greatest” in shaving technology. Gillette must decide how to put the razor wars behind them and maintain or increase its share of the global razor market.
Indonesia is the sixteenth largest economy, the largest economy in the South-east Asian economic region with the world's fourth largest population (263 million in 2017). It is an emerging economy that has increased its international integration, trade liberalisation and diverted from policies of import substitution towards export-led development. Indonesia is a member of the Group of 20 (G20) major economies and has been an active founding member of the World Trade Organisation (WTO). The impact of globalisation has benefited Indonesia as quality of life indicators and economic developments have improved but it also presents the challenge of improving regulations, building more competitive industries, increasing investment into education and infrastructure to remain competitive. Consequently, Indonesia has introduced numerous strategies to promote economic growth and development.
The introduction of the Sensor Shaving System, one of the biggest product launches ever, forced Gillette to reevaluate its strategy in its shaving and non-shaving business. It had to decide whether to go ahead with the launch and if so, at what scale.
Our marketing weakness is in our name, The Perfect Shave, which implies we only cater to men. And in fact we do focus exclusively on the male demographic. This may unintentionally alienate women and children from visiting our shop. It will be critical that we make it clear that women, children, and families are also welcome. We don’t want to dissuade potential customers by being too focused on men.
Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.
Gillette has been successful in convincing the world that more is better, in regards to the number of blades and other features of a razor. To be successful in the
Paramount Health and Beauty Company is in the process of launching a new technologically advanced nondisposable razor “Clean Edge”. With its improved design, Clean Edge provides superior performance by utilizing a vibrating technology to stimulate hair follicles and lift the hair from the skin, allowing for a more thorough shave. The company has decided to introduce it in the men’s market where it has a strong presence. The company is now focussing on positioning and naming of this new product. It also needs to decide on the promotional activities to be performed adhering to the budget constraints and also must decide on the distribution channels through which it can reach to the masses.
Because of their similarities, Proctor & Gamble and Gillette are a good strategic fit. Between the two entities they have the ability to combine operations, technology, resources, distribution channels and research costs in efforts to drastically cut spending. With lower costs, and the merger complete, the collaboration of Proctor & Gamble and Gillette should achieve a 1+1=3 effect.
Gillette is successful because the focus on the one thing they know and that is men. They understand what men need for their grooming needs, and their products are sold all over the world (P Kotler, 2017). Gillette’s popularity has worked because of several factors, including high-quality innovation, consumer research, and mass communications. With their research, and the fact they have kept improving their product, Gillette has made many breakthrough product innovations, which should allow their success to keep increasing. In 1971, there was the Trac II, the first twin-blade shaving system, then the Atra in 1977 there was a razor with a pivoting head, and then in 1989 they developed the Sensor the first razor with spring-mounted twin blades dubbed (P Kotler, 2017). In 1998, Gillette introduced the Mach3 it was the first triple-blade system, surpassed only by the 2006 launch of the six-blade Fusion, promoted as “the best shave on the planet.” (P Kotler, 2017) It is possible that Gillette can become as successful with Women as Men due to the fact Procter & Gamble acquired Gillette in 2005 and Procter & Gamble are experts at marketing to women, due to the fact most of their lines such as dishwashing liquid, laundry detergent, and hygiene products are aim for their woman clients.