Gilette Indonesia Essay

1340 Words6 Pages
A. Introduction Gillette, a leading company selling consumer products in the world, entered Indonesia’s market in 1971. Though it obtains large market share in shaving products, lots of problems are encountered. The followings are the analysis of the situation of Gillette in Indonesia and the possible solutions and recommendations for Gillette. B. Company profile Gillette was founded in 1901. It was the world leader in blades and razors as well as 9 other consumer product categories. Its products were distributed in over 200 countries and territories. It operated in a combination of business and regional operational-units. Its manufacture was conducted at 50 facilities in 24 countries. As Gillette’s products were sold globally, the company emphasized geographic expansion, and one of the expansion targets was Indonesia. In 1971, Gillette entered the Indonesian market by a joint venture with a local company. In 1972, it built its razor blade plant, which mainly manufactures double-edge blades. Throughout the years, its revenues grew constantly. C. SWOT analysis To further analyze the situation of Gillette Indonesia, a SWOT analysis reviewing Gillete’s strengths, weaknesses, opportunities and threats, was prepared. Strengths -Localization allows each marketing manager to make its own marketing decision. -High operation efficiency resulted from short cycling time. -Strong brand awareness Weaknesses -High pricing makes Indonesian unaffordable. -Loss of management talents due to unsatisfactory offers. Opportunities -Large potential market due to large population size. -High economic growth makes Indonesian likely to afford high-ended product soon. Threats -Communication challenges with distributors created by cultural factors cause poor distribution efficiency. -Small market size because shaving is less demanded. -Poor infrastructure &

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