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Gillete Indonesia

In: Business and Management

Submitted By santosh553
Words 531
Pages 3
-------------------------------------------------
Gillette Indonesia
Case Study Analysis
October 24, 2015
Sumeet verma
EPGP08-116
October 24, 2015
Sumeet verma
EPGP08-116

Introduction
1901 – The Gillette Company founded in Boston.
1905 – Opening of London office,
1906 – Established a blade factory in Paris
1971 - Gillette entered the Indonesian market forming a joint venture with a local company
1972 – Established razor blade plant .
1995 – Manufacturing capacity of 150 million blades (46 million exported)
1996 – increase production to 168 million blades (50 million exports)
1996-2001 – Achieve production capacity of 230 million per year.

Marketing Mix
Products
Gillette’s product line includes ; * Double edge razors (Core Product) * Disposables (2 types) * System blades (3 types)
87% of all the blades sold were double-edge (100 million out of 115 million sold)
Share of disposables projected to increase to 20% in 1996.
Revenue expected to $27.6million in 1996, with a gross margin of 46%.
Gillette also expects the revenue from the Sensor system to double.
Other product to grow at a smaller margin.

Price
Gillette’s products are relatively expensive (4 times that of competitions)

Place:
Distribution is most complex challenge. * Geographical spread across 15K islands. * Regulatory restrictions on foreign companies from directly importing & distributing products . * Poor traffic conditions , no/lack of distribution service .
Operating with 23 distributors achieved 60% increase in sales .

Promotions:
Gillette spends 9% of gross sales on advt. 3% on consumer promotion. $2 million is advertising budget for shaving products in 1995.Media advt. is addressed to urban male consumers.
Special promotions for members of golf clubs , workers of MNC.

Question - 1. What factors determine demand for blades? How...

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