1.

Shaving was underdeveloped in Indonesia but incidence of shaving was

increasing. The factors that determine the demand for blades are:

• Awareness of western grooming practice, especially in urban areas

due the presence of MNC’s.
• Only urban adult shaved and the average incidence was 4.5 times
a month (No of times one shaved in the month)
• Trend setting college students who influence others.
• Asian Beards didn’t grow that fast as Caucasian or Latin beards.
• Income level.
• Given the place followed Muslim religious practice, religion could
be one of the factors as cutting beard is considered to be sin.
• Cost of blade itself could be one determining factor (like Parle-G in
current scenario in India)

Ways to increase the demand are as follow:

• Advertisement: Gillete should advertise their products with the

benefits that customers/consumers will get from the product. The
advertisement should be in such a way that it should create urge
for people to buy Gillette Products.

• Awareness: Given rural population is unaware of the shaving

practice, aware ness campaign should be run for people to
understand the importance of it.

• Incentives: Company can come up with some cashbacks or any

other incentive that will attract customer to buy product.

• Trial Period: Allow customers to try the product before using it

permanently.

• Affordability: Make blades affordable for different sections of

society based on their income.
2. Gillete is doing very well in Indonesia. Gillete Brand name was
synonymous with high quality double-edge blades. Bahasa Indonesian
was the name similar to Gillete.

• Sales - Gillete had a 28% of market share by volume in

1993 and grew by 48% in 1995. By 1996, the expectation
was to have 50% share. Capturing half of the market is very
significant and helps understand that it was a market
leader in Indonesia.
• Market Penetration – Market research conducted in 1995
showed that 97% of brand awareness in Indonesia and 55%
of them confirmed to be recently used. 90% premium priced
segment.
• Operation – Gillete had a plant in Indonesia which produced
150 million blades, of which 46 million were exported. Gillete
manufactured 75 products out of which 65 were shaving
items.

With the points above Gillete definitely had a first mover

advantage in penetrating in Indonesian Islands. It gained close
to 48% of shares and was planning to target 50% in the year of
1996.

3.

• Indonesia has close to 15000 islands with an estimated

population of 196 million (37% living in Urban and 65% living in
rural areas). Gillete can start awareness campaign in some of the
islands where
they don’t have any presence.
• Price reduction: Dispone Brands like Tiger and Tara are giving the
blades at a lesser price, if we don’t reduce price, we would end up
losing the market, so Gillete should really think on its pricing for
end customer.
• Increase distributors and incentives to distributors.
• Increase plant capacity to produce more.
• Plan promotions to attract customer’s
• Accessibility and availability of product across all regions.