Decision & Background: Chester Allan, Gillette's country manager in Indonesia, projected a 19% increase in blade sales, while Rigoberto Effio, business director of Asia- Pacific, believed that sales could be increased 25-30% in that same period. Allan must now create a marketing plan to meet to meet these growth expectations.
The dynamic Republic of Indonesia has incredible opportunities for growth with its rapidly growing economy and population. More than 2 million Indonesians were entering the workforce each year, many being potential customers. Despite the growing economy and population, Indonesia still posed many challenges to overcome. Distribution and production capacity were two challenges that must be improved to handle future increased demand.Recommendation and Basics: Gillette needs to target current male knife shavers and convert them to double- edge blades.
This is a large potential target consisting of 54. 8 million Indonesian men. (Exhibit 1) To reach blade sales growth goals, 4 million customers need to be converted at the average rate of 9. blades per year. (Exhibit 2. ) Further targeting and more advertising dollars needs to be directed on marketing to knife shaver in urban areas.
Marketing Surveys from this target group need to be implemented to collect information on key issues and formulate an intense marketing campaign. (Exhibit 3) This survey should be sent out via mail, by phone, or in person with an incentive of a free razor or other prize if person answers all questions.More research needs to be gathered from both urban and rural areas to effectively convert the most customers. Meeting the 30% blade sales goal will encounter a demand for 149. 5 blades for 1996, which under the current manufacturing output structure would not be possible.
To solve this problem, exports should be cut down and outsourced to another country, due to the strict guidelines Indonesia has on importing. The distributors should also graded on their past performance and available credit. Gillette should replace failing distributors and work with the others to improve their operations, accounting, and communications.Assumptions and Uncertainties: This plan assumes Gillette maintains or increases its 50% market share with low completion. Much of the information on rural shavers and their habits is uncertain and can only be assumed.
It was assumed that 80% of males had the ability to shave. This plan does not account for steady growth from existing customers either in number of blades used per year or upgrades from on blade to another.Action Steps: Conduct marketing surveys and research immediately on target groups to formulate specific plans to meet customer concerns. Ad space (print and television) should be purchased in areas of high target concentration. Products anticipated for export should be redirected to other manufacturing plants outside Indonesia. Distributors need to be graded, with failing distributors being replaced immediately.
Other distributors need to be trained and educated to improve their performance grades, so at the end of 1996 all distributors meet a standard grade.
