Case No. 5
Developing the Marketing Plan Case:
In October 1995, Chester Allan, Gillette's country manager in Indonesia, was developing his unit's 1996 marketing plan. Once completed, it would be forwarded to Rigoberto Effio, business director in Gillete's Asia-Pacific group based in Singapore. Each year Effio received and approved marketing plans for the 12 countries in his region, which reached from Australia to China. Once approved by Ian Jackson, Asia-Pacific group vice president, the overall marketing plan-for the region would be reviewed subsequently, along with other regional plans, by Robert King, executive vice president of Gillette's International Group.
Allan's plan projected a 19% increase in blade sales in Indonesia in 1996 from 115 million to 136 million. This seemed reasonable given a 17% increase in 1995 over the previous year. With a population of almost 200 million, Indonesia represented an important country in the portfolio of markets for which Effio and Jackson were responsible. Effio wondered whether investment spending in marketing beyond the 1995 level of 12% of sales might further accelerate market development. Given the growth rates of Gillette's business in other Asia-Pacific countries, Effio believed that a 25% to 30% increase in blade sales could be achieved in Indonesia in 1996.
STATEMENT OF THE PROBLEM
How rapidly the Indonesian market for blades and razors could or would expand. Should the Indonesian market be allowed to just move along at its own pace? If so, what would that pace be?
Gillette's mission was to achieve worldwide leadership in its core product categories by developing marketing plan.
* The company emphasized geographic expansion along with research and development, advertising, and capital spending as drivers of growth. * Upgrade the market to higher value products and shaving...
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