Gillette is a well-known manufacturer of personal care products around the world. Blades and razors are the main revenue drivers accounting for 40% of total company revenue. * Strengths: Strong brand awareness, increasing incidences of shaving, market share of 50% expected in 1996. Consistent growth over last 5 years. * Weaknesses: Plant expansion delayed to 1997 – pressure to meet demand. Grooming products still considered luxury items. Distribution issues, including communication, locations, infrastructure, religious holidays, and sufficient working capital. * Opportunities: Penetrate and increase supermarket sales (only 5% of sales in 1995). Test and increase distribution with “mom-and-pop” shops. Influence and lead existing Gillette product users into higher unit margin products. * Threats: Shelf space competition increasing in supermarkets with those stores demanding higher costs – this would lower profit margins and/or drive down sales if competition got the space. Low cost competitors stealing market share.
Develop marketing plan to achieve 25%-30% increase in blade sales in Indonesia in 1996 while maintaining or increasing profit margins.
1. Target Market: Focus in Java and Bali due to increased economic growth and higher standard of living there, which makes up 60% of the population and 75% of GDP. Target college students and graduates. 2. Positioning:
3. Product: Lead existing users to higher margin product upgrades (GII, Contour, Sensor). Continue 4. Price: Keep pricing neutral since market share is ~50% of the market and there is increasing income in Java and Bali. 5. Place: Increase exposure in supermarkets and mom-and-pop shops. Add more distributors in urban areas. 6. Promotion: Advertising via radio and T.V. specifically to...