Gillet's Indonesia Case Study: Strategies for Market Growth

This case study analyzes Gillette's marketing strategies in Indonesia. It begins with an introduction to Gillette and its entry into the Indonesian market, highlighting the initial marketing objective of introducing shaving to a largely underdeveloped market. The study then delves into the marketing objectives, including achieving a 30% growth rate. It examines the product marketing strategy, using Ansoff's matrix to explore intensive, integrative, and diversification growth strategies, with a focus on market penetration and market development. The analysis covers segmentation, targeting, and positioning (STP), the customer value creation mix, and resource allocation, with a table showing revenue and marketing expenditure over several years. The study also discusses the implementation and evaluation of the marketing plan, including communication, advertising strategies, and key performance indicators. Finally, the case study concludes that Gillette has a significant opportunity in the Indonesian market, emphasizing the importance of a strong marketing strategy and efficient plan to achieve the desired growth rate.

Running Head: Gillets Case Study
[Company name]
Gillets’s Indonesia Case Study
[Document subtitle]

Gillets Case Study 1
Introduction
Gillette
started
with
the
single
aim
and
today
also
company is working on same aim with more and more innovations every day, in the words of
Gillette “Our legacy of precision began with one man, King C. Gillette. His visions have inspired
over 100 years of innovation to bring you the best shave in the world. And we’re not yet done”
(Gillette, 2017). Gillette Company was founded in 1901, and is today world leader in razors and
blade manufacturing.
Gillett entered Indonesia in 1971, and its razor plant was established in Jakarta in 1972, the main
objective of entering Indonesian market was to introduce the concept of shaving in the market, as
Indonesian market was highly underdeveloped, but it was gaining the importance as college
students and working professional’s awareness of western grooming was increasing. The case
study provides us the information that as per the market trend 17% growth is anticipated but the
question arises is that with strategic planning and appropriate strategies can it be increased to
30% in a year?.
Table of Contents
Introduction.................................................................................................................................................
Marketing Objective....................................................................................................................................
Product marketing strategy..........................................................................................................................
Market Penetration..................................................................................................................................
Market Development Strategy.................................................................................................................
New product Development......................................................................................................................
Diversification Strategy:..........................................................................................................................
Segmentation Targeting & Positioning........................................................................................................
Customer Value Creation Mix.....................................................................................................................
Resource Allocation....................................................................................................................................
Implementation of Plan...............................................................................................................................
Evaluation & Control Process.....................................................................................................................
Conclusion...................................................................................................................................................

Gillets Case Study 2
Marketing Objective
Marketing objectives are the smart goals which refer to specific, measurable, authentic, reliable
and time sensitive based on the case study keeping all dependent variables constant 30% growth
every year is projected.’ Assessing market growth rate is essential to directing your business and
marketing efforts moving forward’ (Maguire, 2017). Gross margin projected is rising every year
based on its positive approach to achieving the economies of scale.
Product marketing strategy:
In the case study, the projected sale is 17% and desired sale is 35% this gap is known strategic
planning gap, In order to curb this strategic gap, various growth strategies can be employed
namely Intensive growth strategy, Integrative growth strategy, and Diversification growth
strategy.
Years Revenues in Million $ Gross margin
1996 32.2 46%
1997 41.86 48%
1998 54.418 50%

Gillets Case Study 3
Figure 1.1 Strategic Planning Gap
Figure 1.1 clearly depicts that the strategy to be employed for bridging the gap in the
views of Ansoff (1975), Intensive growth which refers, to identifying further growth
opportunities within existing business, integrative growth refers to a building or acquiring new
business related to current market and diversification refers to acquiring a new business that is
unrelated to current business. Intensive growth strategy involves various strategies which can be
explained through Ansoff Matrix, Ansoff Matrix is the strategy for the marketer looking forward
to increasing its sale.
Market Penetration: existing product existing market, here the organization, the best way to
employ this strategy is to attract the competitor’s customer, as per the case study, bringing more
and more aware of western grooming.
Market Development Strategy means offering same product to new market it can be done by
promoting razor’s use for women or offering to the new geographic location of Indonesia.
New Product Development Strategy: means offering a new product to the existing market, which
can be done by developing electrical razors.

Gillets Case Study 4
Diversification Strategy means offering a new product to the new market, it can be classified into
related diversification which can be like producing aftershave or shaving foams to the market or
unrelated diversification this means offering unrelated product i.e. starting producing clothing
range under the same brand.
As per the Gillett’s case study market penetration strategy and Market development strategy will
be most appropriate to apply in order to increase sales and profit, as the Indonesian market is not
yet fully tapped.
In order to tap the market, Market penetration and New market development strategy can be
applied by inspiring target audience to shave frequently for more consumption of blades and
razors or can bring in woman razor and influence them to use the same.
Segmentation Targeting & Positioning:
STP is the foremost function of any marketing task, according to the Chillya, Herbst and
Lombard (2009) marketing strategy is a method by which a firm attempts to reach its target
markets. Segmentation is done on demographics for example it is actually the selection of
customer base to whom you will offer the product, as per case study in the market of Indonesia
man from the age of 18 to 70 is been targeted in order to influence more selling and in order to
go for market development strategy another segment that is female should be targeted and
company should bring in more awareness campaign to influence woman to look more beautiful
and confident by removing their unwanted hairs by Gillett’s razor.
Customer Value Creation Mix
Value Creation Mix Current Future
Product Mix A. Double-edge Blades Can add female razors with

Gillets Case Study 5
Gillette Blue Blade
Gillette Goal Red
Gillette Goal Blue
B. Disposables
Goal II
Blue II
C. Systems Blades
Gillette GII
Gillette Contour
Gillette Sensor
smooth finish
Travelling Pack or
introductory packs
Price Mix Premium Pricing Lower down pricing .in order
to penetrate
Place Mix Indirect Distribution Strategy Intensive distribution strategy
Promotion Mix Advertising (Spreading
awareness)
Persuasive messages in order
to tap more and more
customers
Resource Allocation
Year 1996 1997 1998
Total Revenue $32.2mn $41.86mn $54.41mn
Marketing &
Advertising
$4.83mn$ $2.55mn $3.26mn

Gillets Case Study 6
New Strategy $1.28mn$ 0 0
Consumer Promotion $0.966mn$ $1.25mn $1.60mn
Sales & Admin Cost $4.58mn$ $5.86mn $7.58mn
Table 1.1
In the year 1996 advertising budget has to be high i.e. 15.2% of the revenue as per CMO as the
company is on penetration phase and it has to tap customers, so company need to persuade lots
of customers, and need to invest in new strategy whereas in 1997advertising budget can be
reduced and the ratios can be taken as per norms of B2C company ratio i.e.6.1% as company’s
revenue falls between $26-99 million
Implementation of Plan
A good level of internal and external communication is required for successful implementation
of the marketing plan (Veresova, 2002). For successful implementation of a new strategy and to
tap customer, efficient team is to be appointed who have knowledge of market so that goals of
the organization can be achieved through the implementation of strategy require teamwork.
The company needs to appoint many distributors and retailers in order to capture the market and
should definitely concentrate on the untouched market. For communication and advertising,
persuasive advertising ATL & BTL advertising techniques need to be used as the customers need
to be both pushes and pull for more sales.
Evaluation & Control Process
This process involves ensuring that the results of the program are in line with the goals
set. (Cleverism,2015)
What is to be
measured
How it is to be
measured
Data source When it is to be
measured
Marketing Goals Projected Revenue Annual sales In a year

Gillets Case Study 7
figures data
Key performing
Indicators
 Employee
Performance
 Customer
Response
 Demand V/s
Supply ratio
 Advertising
response
 On shelf
display
Regional
Reports
Monthly basis
Conclusion
Indonesia is the developing economy, with young population Gillette, has a strong opportunity in
this market and truly with strong marketing strategy and efficient plan it can truly achieve the
desired growth rate goals.
References
Ansoff, H.I., 1975. Managing strategic surprise by response to weak signals. California
management review, 18(2), pp.21-33.
Chiliya, G, Herbst, G. & Lombard, MR, 2009, ‘The impact of marketing strategies on probability
of small grocery shops in South African townships’, African journal of business management,
Vol. 3, pp. 70-79

Gillets Case Study 8
Cleverism, 2011, ‘The strategic marketing process a complete guide’, viewed on 25 September
2017, from https://www.cleverism.com/strategic-marketing-process-complete-guide/
Maguire, 2017, ‘ How to determine and use your market growth rate’, viewed on 25 September
2017, from https://quickbooks.intuit.com/r/growing-your-business/determine-use-market-
growth-rate/
Veresova, I E, 2002, ‘Marketing Plan’, BIATEC Vol. 10, no.8 pp. 13-18