Gillette Case Study Hbr Essay

1421 Words Feb 13th, 2012 6 Pages
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
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This can be a blue ocean for the company as the competition is lesser and opportunities are greater. The company has a major share in the premium market too.
Potential Target Markets
Currently 60% of Gillette sales come from 5 metropolitan cities. There is a big market of the rural customers who are either not shaving or are shaving with traditional methods using knives. Gillette can also spread awareness about the higher end products and can target to move existing customers to use Sensor.
Value Proposition * To provide quality products of International standards for grooming, keeping up with Gillette brand. * Target different segments of the market with the appropriate products. * Provide rural markets with basic entry level blades and promote high-end products amongst urban users who are influenced by western practices.
Marketing Plan
Currently 90% of premium market for blades and razors is already covered by Gillette and our marketing strategy is focused on bringing in new customers from rural areas and upgrading existing customers to high-end products.
Product
Gillette’s highest selling product is Gillette Goal Red which forms 87% of its total sales. However, Gillette Blue Blade which is the cheapest product from Gillette is far behind in number of sales. Promoting Gillette Blue Blade in rural markets will be an ideal way to tap new customers.
Goal II –

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