GILLETE INDONESIA: MARKETING STRATEGY AND ROADMAP FOR FUTURE GROWTH
SUMMARY STATEMENT
Income levels are rising steadily in Indonesia and since Gillette is the preferred brand for the urban affluent segment of population, Gillette should focus on encouraging its current users to move up the value chain to premium and upper segment offerings of the Company. LTVC of customers using premium products is $127 as compared to $59 and $34 for customers using disposables and double edged blades. (Refer annexure VI). Accordingly, Gillette Indonesia should focus on the premium market segment and should also encourage such users to adopt shaving more frequently as a lifestyle enhancing attitude. Focussed advertising on these segments of the population will yield such desired results. Additionally, the Company should focus on improving penetration into smaller cities and rural markets so as to have a first mover advantage in this underexploited market. The current non user market should be penetrated by greater spends on focussed advertising on these segments using appropriate advertising media and specific promotion strategies like providing free samples to non users. Finally, the distribution channels of the Company should be strengthened to increase reach of products to all markets.
SITUATION ANALYSIS
Context: - Indonesia is an under developed market for Gillette products and the blades market is growing slower than other Asian economies. Gillette Indonesia is faced with the challenge of increasing the market demand for its products and consolidate its position as the biggest player in the shaving market in Indonesia. Demand for the company’s products are currently concentrated in certain urban areas and larger tracts of outlying rural areas are still untapped.
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