Gillette, Indonésia

Résumé du document

After entering the Indonesian market in 1971, Gillette with a 48% market share in 1995 became the market leader in its domain. Gillete was expected to acquire 50% of the market share by 1996. The high growth of Indonesian GDP, the rising incomes and increased consumer awareness enhanced Gillette's performance in the country.

Extraits

[...] Therefore, Gillette's performances on the Indonesian market are very good in terms of sales and awareness. This leadership can be seen as the consequence of a series of elements: - an appropriate strategy led by Gillette to enter emerging markets: Market entry has been led along with the "think global, act local" credo. Indeed, whereas the headquarters develops new products, the local management decides the mix and is encouraged to take initiatives. Gillette has understood that the Indonesian market required adapting the marketing components in order to suit the need and usage of the population. [...]

[...] Yet, the urban population represents only 35% of the Indonesian population. The rural population could therefore represent a real potential for Gillette and account for the increase of demand in the future. But for that to happen, Gillette has to educate that other fringe of the population that is not familiar at all with the concept of shaving and that is less exposed to the media. Therefore, Gillette can not only advertise towards rural population but could act through its distribution network. [...]

[...] For example, Gillette's products in industrialized countries are mostly sold through supermarket. Yet, in emerging countries, that channel would not be appropriate insofar as only the high-income fringe of the population shops in supermarkets whereas the majority of the people purchase in mom and pops shops. Therefore a large autonomy has to be given to local subsidiaries, and their initiatives have to be encouraged. Local managers are the best placed to know what kind of products should be developed, or adapted, to suit the emerging market. [...]

[...] Nothing has to be taken for granted in emerging countries: even if headquarters thinks the shaving concept is clear and adopted worldwide, cultural differences are great. So only once the population is clear with the concept, then the company can further the cycle of the product by launching more sophisticated ones in order to make people trade up. But this takes time and should not be rushed by the headquarter. [...]

[...] - A name that has a good image among the population: Gillette has 97% awareness in Indonesia. But most of all it is synonymous of high quality double-edge product. Also, Gillette had an incomparable chance that the brand name sounds similar to the Indonesian word for blades, which can help the penetration of the market. - A good distribution strategy: Gillette appointed 23 distributors across the country, and these local distributors could therefore provide a quick response on the different areas. [...]