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Marketing strategy for Gillette Indonesia

Maria Mitsura Ekaterina Surova Anastasia Ivanova

Gillette is a brand of Procter & Gamble used mainly for safety razors as well as other associated personal care products. As we see from a case study provided, Gillette has been for a while on Indonesian market; in 2012 it has a total market share around 50%. To drive the brand towards further prosperity, it is essential to develop a good marketing strategy and study carefully the current market situation. As for the foreigners in Indonesia, it's easier for us to analyze the market throughout the comparison of Indonesian and European market. Let's have a closer look. Western boys start to shave at the age of 15 while Asian only around 20. Men in Indonesia shave approximately 5 times a month, whereas Europeans do that 20 times or even more often. People in the West are familiar with a wider variety of the product line (besides razors, there are different margin

products like shave gels and foams, deodorants, skin care treatments and body washes). Furthermore, shaving market in Indonesia is limited to the men only. Since Asian women know many beauty secrets from the past, woman shaving market in Indonesia is in initial stage of development while in Europe it is commonly used (Gillette has several product lines designed especially for women - the brand VENUS is a subsidiary of the company).

So to fulfill objectives and develop an efficient market strategy, we have studied the case and applied academic knowledge to the real marketing plan. PRODUCT Same Strategy 2: Product Extension Communication Adaptation Strategy 1: Dual Extension

Different COMMUNICATION Same

Different Strategy 4: Dual Adaptation Strategy 3: Product Adaptation Communication Extension

From the extension and adaptation matrix we have chosen the second strategy (same product, different communication). Without further ado, let's go in details. The major product remains the same (razors and blades). However, it is necessary to enlarge the marge sector by bringing, spreading and popularizing margin products (skin and body care lines - pre/after shave lotions, soothing creams, shaving foams, deodorants etc.). Thus would increase quantity and frequency of buying the product. From the side of communication, Gillette should work on developing the effective communication network. It is very important to constantly remind about the brand. It goes without saying, the company has already spend a huge amount of money on advertising but in

order to attract public awareness and increase customer loyalty, Gillette has to keep up paying special attention to its advertising company (pick up a media planning - wide press coverage: TV, radio, billboards, Internet as well as create a message strategy: support of charity, active groups, sports and movements, involving popular artists). Bearing in mind competitiveness and growing threat of the cheap local brands, it may be effective to work on sales promotion. Taking into account sales, though there are some limits and rules applied to the foreign companies in Indonesia. Infrastructure is not fully developed. - We see, it is a complicated market, therefore, the company should pull its efforts together by conducting sales promotion strategies (cross sales, tie-in promotions, loyalty/frequency marketing) and last but not the least, work on the points of purchase (in-store advertising displays) to increase the sales. The strategy 3 (communication extension) from the matrix of extension and adaptation is partially applicable to the case as well. Products are adjusted to perform the same function under different environmental conditions. Indonesia is the largest archipelago with a great variety of ethnics, cultures and belief. It is a challenge to meet everyone's expectations. Gillette should attract new buyers as well as encourage for the further purchases its loyal customers. As for the market option matrix, the company has to develop (attract new consumers) and penetrate (fasten sales, enlarge geographical distribution and increase quantity and frequency of shopping) and diversification (bring along margin products) market.

According to the 4Ps analysis in the case study, we see the following opportunities and suggest these strategies for Gillette: broaden the target market paying special attention to youngsters, scholars and office employees as they can set an example for potential buyers I.e. involve newbies to shave (target the larger audience); westernize consumers by increasing the frequency of shaving (driving towards globalization); to refresh margin products by introducing the larger amount of complimentary goods launch and promote women shaving brand line VENUS; develop better distribution network to cover remote areas; work on communication extension, advertising and sales promotions (see the details above); try to decrease the price to make it affordable for the larger audience. (It is better to sell more on a lower price and get bigger profit from the quantity of sold items).

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