Context
Production of accessories for hair grooming and hair removal is an ever expanding market that is growing rapidly. Conversion ratio of consumers who prefer modern methods to traditional methods is high. Even though Gillette has a major share in the market, the plan is to expand further to capture the market where it is lacking i.e., low priced economy brand products.
Company
Gillette established in 1901 in the USA gradually expanded its business to other parts of the world and now it is established in almost all countries. Its expansion was facilitated through combination of business and regional operational units. Gillette entered Indonesia in 1972 through a joint venture. Though there has been a very good growth in the Indonesian market by 1995, there is a potential to expand it further in 1996 and beyond.
• In 1995 Gillette’s market share was 48%. In 1996 the market share is expected to be 50%.
• Gillette blade sales increased by 17% from 1994 to 1995
• In 1995 Gillette sold 115 million blades (100million double edged) and the total sales from shaving products were $19.6 million.
• Share of Gillette Indonesia high-margin disposables and systems was projected to increase in 1996 to around 20% of units
• In 1995 sales in five major urban centers Jakarta, Bandung, Surbaya, Semarang and Medan accounted for 60% of Gillette’s.
• Gillette launched women’s razor in 1995
Competition
Gillette faces 2 types of competition. Direct competition is from the already established low priced blades available from other companies and indirect from the traditional methods of shaving.
Gillette faced direct competition f ...