Gillette Case Study Hbr

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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…show more content…
Also, the competitors are not very string in this category. Pricing Gillette is currently seen as expensive item when compared to low-end Chinese competitor products. By pushing the Gillette’s low priced products in rural areas, threat from Chinese competitors can be reduced. The prices for Gillette products can be reduced thereby capturing more market share by reducing trade discounts. (Appendix 1) Investment and improvements in distribution system can be another way to reduce the over-head costs and thus higher margins can be passes on to retailers who will then have an incentive to promote Gillette products. Placements (Channels) Majority of the high end products of Gillette are sold through Super Markets which are used by the high income group of the society. However the distribution in the rural market is more on the pull basis where customers demand for a product, this could again be increased by improved distribution systems which can ensure Gillette’s products in remote areas thereby increasing the brand penetration. Promotions In order to attract first time customers Gillette should distribute promotional packs of disposable razors with sachets of shaving cream/foams and demonstrate how to use them, highlighting the advantage of using personal razors compared to using knives which is generally shared with others and spread diseases. Currently 50% of the advertisement budget is allocated to

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