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Assignment Marketing Strategy & Marketing Plan

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Harvard Business School

   

Added on  2020-05-28

Assignment Marketing Strategy & Marketing Plan

   

Harvard Business School

   Added on 2020-05-28

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Running head: MARKETING STRATEGY AND PLANMarketing Strategy and PlanStudent’s name:Name of the university:Author’s note:
Assignment Marketing Strategy & Marketing Plan_1
1MARKETING STRATEGY AND PLANExecutive Summary This study highlights the strategic management of Gillette in Indonesia and its marketingstrategy in this country in order to expand the business. Gillette is the world leader of blades andrazors; they also produce nine other consumer products. Indonesia has a large population and itseconomic condition is being changed through the recent years. In major metropolitan cities,maximum sales of the products are done. Gillette is categorised as a luxury product in Indonesiaas it sells body grooming products. In this study, external environment of Indonesia and itsmarket are explained. Annual GDP of Indonesia and its large population provide help to Gilletteto expand its market in Indonesia. The population of Indonesia follow western culture to groomthemselves. This tendency can help Gillette to increase in market share. In addition, Gillettealways follows the technological innovation in operation and they also increase products line tobe competitive in the market. The expected growth of people's disposable income in Indonesia isalmost 16% and capitalise on income growth to increase sales to provide opportunity in themarket. Gillette has introduced 24 different distribution channels to grow in the market and toreach large customers in the market. Gillette provides the products in premium pricing, on theother hand, competitors provide the products at less price. External situations and internalcapabilities of Gillette have been explained. Moreover, segmentation, target market andpositioning strategies of Gillette have been discussed. Marketing mix of Gillette has been givento grab the large market share in Indonesia. Implementation plan for the pricing and promotionalstrategies have been discussed.
Assignment Marketing Strategy & Marketing Plan_2
2MARKETING STRATEGY AND PLANExternal environment – Near environment Market reviewGillette entered Indonesia market in the year 1971 and in the year 1995; Indonesia had apopulation of 196 million. Personal grooming products of Gillette did not have demand at theearly stage of marketing in Indonesia. In recent time, GDP growth is high and manufacturingsector has been observed a growth of 12% (Hill 2016). Economic progress in Indonesia isevident as per-capital income is increasing; this reflects an increasing disposable income of thepeople. The government of Indonesia focuses on export-oriented industrialisation in order tocreate growth in the market. The market for Gillette products is high right now as the personalgrooming products are now using by Indonesian people. Personal grooming products areregarded as luxury products, however, western mentality reflects in Indonesian market topurchase the products.ImplicationsOpportunities Rating Threats Rating Market growth of12%5Export orientedindustrialisation 4Economic progress inIndonesia 4Personal groomingproducts do not havemarket in Indonesia3Western mentally ofIndonesian 3Gillette has markets inmetropolitan cities4Competitive review Gillette is famous for high-quality products and Indonesian can relate to the products asin Bahasa language, ‘blade’ sounds Gillette. Gillette held the market share of 40% in the blade
Assignment Marketing Strategy & Marketing Plan_3
3MARKETING STRATEGY AND PLANmarket and it is expected to rise in the near future. Gillette is trying to expand the market bygiving the customers to choose from wide ranges of product lines. Gillette offers three types ofdouble-edge blades, disposable blades, the GII blades, the contour system blades and sensorblades. Gillette has been facing the competition from low-end blades from China and EasternEurope. Competing brands in Indonesia in most of the major cities are Tiger, Tetra and SuperNacet. In Indonesia, Gillette's products' price is fourth time higher than the competition's prices.Rising income and developed Gillette's distribution may help the consumers to avail the Gillett.In addition, Gillett's disposable blades have two competitors, Bic and Bagus. Bic is from USAand Bagus is a local manufacturing company (McKibben 1998). These products are not sold inhigh volumes and disposable blades are sold in minimal. Implication Opportunities Rating Threats Rating Gillette's distribution4Presence of Bic andBagus4Expand the market3Higher than thecompetition's prices3Competing brands inIndonesia in most ofthe major cities areTiger, Tetra and SuperNacet.3Expensive brandmaintenance 5Distribution channels and buyersIndonesian regulations stop a foreign company to do distribute and import the products.Therefore, the retail prices of the products cover majorly in distribution services. Gillette used asingle national distributor; however, this strategy did not work correctly. Single distributor
Assignment Marketing Strategy & Marketing Plan_4

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