Gillette Indonesia Case Study Analysis Format

Gillette Advertising Marketing Case Study Essay

1955 Words8 Pages

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)

For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by…show more content…

This can be clearly illustrated by the situation Gillette faced during the leadership of the CEO Vincent Ziegler. He started to buy other companies and failed to generate more profit. At first his plan looked very promissory and generated revenue but at the end the company ended up losing money and time they could have invested in their own business.

Competitors, on the other hand knew how to react towards Gillette’s distraction. This was when Shick, company founded by Wilkinson Sword made its movements and introduced to the market its “stainless-steel blade”. As mentioned before, Gillette was distracted by the loss on its acquisitions and failed to foresee the problems this could bring. Although Shick did not have the enough resources to compete with Gillette in order to exploit the niche markets it had penetrated and ended up being sold by Wilkinson Sword to Gillette; they took 21 percent of market share away from Gillette.

By all this we can conclude that Gillette was actually consumed by its ambition to earn more revenue through the wrong way. Instead of trying to generate more profits buying other businesses, the Gillette executives should have focused more on the continuous innovation to their own company, because after all it was this continuous innovation and dedication that took Gillette to the top and avoid it to have any serious competition until 1962.

It was because Gillette’s executives were so confident in their own success that

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1 Executive

Summary 

The aim of this report is to recommend a marketing strategy for Gillette Indonesia.These recommendations will allow Gillette to realise its mission of achievingworldwide leadership

in

its

core product categories. The company's approach “thinkglobal, act local” has

enabled

Gillette to capture a significant proportion of the

blade

sales market and enjoy strong brand recognition (48% of market share for blades

and

90% of the premium priced segment) (Quelch & Long

1996).

Gillette’s differentiated marketing strategy; persuading consumers to shave for thefirst

time;

increasing incidence of shaving among existing shavers; and, trading upshavers, appear 

to

be very effective with a 9% increase in sales 1990 -

1995.

Strong economic growth of over 7% in the last 20 years in Indonesia has increasedper 

capita

incomes and improved standards of living. With a population of nearly 196million,

Indonesia

represents a significant market for Gillette in the Asia-Pacific region.Efforts to increase

market

share presents a few

challenges:

affordability 

- 80% of the population earn less than

$10,000;

shaving rate

- incidence of shaving is low compared to developed

countries

(Indonesian shave on average 5.5 times per month compared to 12 times per month

in

Hong Kong and 26 times in the United States);

and,

regulation - 

restrictions on foreign companies and poor infrastructure impedethe

sales

and distribution

effort.

An effective marketing strategy will allow Gillette to exploit the opportunities

the

Indonesian market represents and gain the first-mover 

advantages.

This report, therefore, proposes the

following:

Adopting value proposition utilising the 4P’s for all

market

segments (McCarthy

1960).

Continue to grow the brand through up-selling, cross-selling and first mover initiatives particularly in the largely untapped 66.8 million female

market.

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