GILLETTE INDONESIA CASE STUDY

1) What factors determine the demand for blades? How can demand be increased?
The factors that determine the demand for blades are:
1)New graduates will have more opportunities to try western cultural practices through mass media.
2)Foreign influence: People residing in urban areas of Indonesia are attracted to western grooming practices through ma
media.
3)Shaving blades are considered luxury items in Indonesia.
So, their demand is more with the upper middle class.
4)Working environment: People working in MNCs may shave more frequently to adapt to the working environment.
5)Religious belief: People of some communities grow beard as a sign of following doctrines.
Their demand can be increased by:
1)Promoting the usefulness of Gillette blades over knives.
2)Increasing market penetration.
3)Showcasing public figures with clean shaven look.

2)How is Gillette doing in Indonesia? Has Gillette leveraged its first mover advantage?
Gillette is going good business in Indonesian double blade business.
In 1995,the unit share of Gillette's blade was approx. 50%.
Its sales increased by 17% from that of previous year.
Total revenue was $23 million and profit was $4.6 million..
Gillette also held 90% of the premium priced market segment.
Yes, Gillette has enjoyed the first mover advantage.
We can say this as:
Shaving incidences are increasing in Indonesia.
The differentiated products can target particular segments of customers.
Brand awareness of Gillette among people was 97%.

3)How should Gillette accelerate the development of blade market in Indonesia?

Gillette should accelerate the development of blade market in the following ways:
1)Gillette should do more marketing in rural areas.
2)Promoting the usefulness of Gillette blades over knives.
3)Showcasing public figures with clean shaven look.
4)Recruiting better marketing staff and handling the recruiters in a better way.