Summary StatementGillette should work proactively to realize its global vision of being a world leader in the Indonesian shaving market by targeting 30% growth. This can be achieved by adopting an aggressive marketing strategy in these areas, namely: increased supermarket penetration, targeting the hitherto untapped rural market and repositioning the product. Situational Analysis Context: Gillette is on the verge of gaining 50% market share in Indonesia and market expansion is a priority operation. However, personal care products are considered by many to be a luxury. Company: A global leader in consumer product categories such as blades and razors, Gillette aims to expand its business operations and dominate all markets in which it operates. In Indonesia, where the incidence of shaving is relatively low, it faces challenges in achieving its growth goals. Competition: Faces direct competition from low-end double-edged blades produced by companies such as Tatra and also disposable items produced by Bic etc. Indirectly, dry and wet knives are potential competitors as they are being used by a large portion of the shaving population. Collaborators: Collaborators are distributors, wholesalers, retailers and supermarket chains. It distributes through 23 distributors spread across the main provinces. Relationship management, dues recovery and working capital flows are key concerns in distributor relationships. Consumers: Most of today's consumers fall into the "urban males over 18" category. College students and the new workforce are trendsetters and are influenced by Western grooming habits. Market Size Table 2 shows that in 1995 approximately 13 million people in Indonesia use Gillette blades in urban and rural areas. And Table 3 estimates the total available market for Gillette. Taking into account local religious customs and the concept of shaving, it can be deduced that at least 15 million (20% of 72) are potential customers of Gillette in Indonesia. This huge untapped market suggests that more efforts are needed in Gillette's marketing. Alternatives proposed changes in the distribution channel Option 1: Reduce the number of intermediaries in the distribution channel. (Rejected)Current chain: manufacturer – distributor – wholesaler – retailer Each intermediary adds his margin to the cost and consequently by the time the product reaches the consumer it becomes relatively expensive. However, alternative distribution strategies have failed to meet consumer needs in the past. The wide geographic spread of the target population, the lack of distribution service technologies and the immature market add to the need to maintain the status quo. Option 2: Empower salespeople with knowledge of optimal sales strategies.
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