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.
In 1995, Gillette enjoys a leadership on the blade market in Indonesia.
Entering the Indonesian market in 1971, Gillette held a 28% market share by volume in 1993 and its share had grown to 48% in 1995. The growth of Gillette's sales on this market is therefore high and fast, and the growth is supposed to continue with an expected 50% market share by 1996.
In value, Gillette's Indonesian sales of shaving products accounted for $19.6 million in 1995, which number was expected to reach $27.6 million by 1996 because of volume increases and price increases.
[...] Gillette's main competitors for this product are imported, low-end, double- edge razors from Eastern Europe and China, such as Tatra, Super Nacet, and Tiger, which products are 4 times cheaper than Gillette. These brands are mostly bought by a rural and low-income population. - Disposables: goal II and blue II. They represent only 5 million units sold in 1995, but was expected to double by 1996. Gillette has 2 competitors on this segment: Bic and Bagus local manufacturer), but none of them sell high volume. Gillette is the leader on disposables. [...]
[...] Consequently, it seems clear that Gillette enjoyed the first mover advantage on this market. The case does not say anything about local manufacturers for this type of product, but if they were selling blades before Gillette entered the market, they didn't have the power of Gillette to get a strong position. Indeed, Gillette was a multinational company with a great reputation and a leading position worldwide for shaving products. It was therefore easier for them to win the leadership on the Indonesian market: not only had they a strong brand synonymous of high quality blades, but also did they have the financial capacity to advertise strongly and educate consumers. [...]
[...] - 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. [...]
[...] 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 strong communication: Gillette spends of its budget on communication. This has made its great awareness possible and it was also one of the greatest tool to educate the population to the shaving concept that was still under developed in Indonesia. - A better awareness than its competitors Gillette is a global brand with a global awareness. Its competitors in Indonesia such as Bagus, are almost local, which means that they cannot gain such a popularity in term of brand and product. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
