Company Introduction
An established household name Innovator in razor technologies World leader in personal hygiene products Promotion by triumvirate of sporting stars (Woods, Fedrer, Henry) Diversied product range Company buyouts: product diversication/elimination Global expansion - new markets
History
2005 Proctor & Gamble acquired The Gillete Company 1996 + 5 yrs produce 230 million blades p/year 1996 increase production 168 million blades, 50 million to export 1995 manufactured 150 million blades, 46 million exported 1972 manufacturing plant established 1971 Gillette entered Indonesia 1901 The Gillette Company founded in Boston, Massachussets
Market entry with signicant investment Established manufacturing plant for local and export sales Brand equals high quality blades Gillette used to mean blade in Indonesian Signicant market share
SWOT Analysis
Strengths Weaknesses
! Increase Western grooming practices ! Large population ! 48% market share by 1995 ! Effective distribution system ! Local and export manufacturing ! Brand = high quality ! Rising incomes, more sales revenue ! Effective marketing campaigns
! Inappropriate global advertisements ! High manager turnover ! Cultural behaviour creates manager/
distributor problems ! Legal system less supportive outside Jakarta ! Intense competition for supermarket shelf space ! Antiquated distribution methods ! Many different languages spoken
SWOT Analysis
Opportunities Threats
! Over 7% GDP growth in 20 years ! Stable political system ! Economic improvements ! Increase in per capita income ! Two million people to enter workforce ! Population earning income growing ! Shaving incidents of 5-10 times per
month + population + per capita income = increased sales
Market Penetration
97% brand awareness 55% of the brands used most often 90% of the premium priced segment 60% rise in sales through implemented distribution methods
HR and Training
10.! 11. Overcome misunderstandings re: different cultural behaviours Empower sales team to: Help distributors update distribution methods Educate distributors and local market about shaving concepts