Gillette Goal Red
Apart room “Gillette Goal Red”, the other products have brand awareness much lower than that of its competitors. Also, Gillette concentrated on a target population a target population of urban men in the middle group bracket. The wholesalers and distributors had poor facilities and traditional, less effective goods handling methods. The major decision issues are: 1. How to compete with brands like Tiger and Tara 2.
Increasing awareness of all products and need for them and the target population for the marketing program 3.
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Better ways of distribution and inventory 4. Increasing staff loyalty 5. Understanding local issues and traditions and advance planning to make accommodations for them Recommendations/inferences on the major issues. 1 .
Aggressive marketing, localized 2. Better reach to target populations 3. Increase remuneration given to managers to reduce the attrition rate 4. Increasing the awareness and sales of Blue Blade which is the most affordable of Gillette blades 5. Increasing the sales of Gillette Sensor among the elite, urban populace as it is a high margin product. 6.
Better management of distribution, store ND inventory Summary of Analysis (quantitative and qualitative) supporting the Recommendation Letter NAS II title competition In ten premium product market In ten Title at Indonesia. However, with the target growth of 25-30% in 1996, over 17% in 1995, certain measures had to be taken. Gillette blue blades have very low brand awareness value, despite being valuable product at affordable costs. With increasing ?income of the people and awareness of the product, the product has the opportunity to increase from 5-1 MOM ( 100% increase) of sales units.
Disposable blades are very popular in the market with tough competition from Tiger and Tara.
However, again, with increase in economic conditions of the people and brand awareness, the product has potential to have 100% increase from 5-MM. Gillette sensor is a premium product targeted toward that 16% of the population that has 40% shopping percentage in supermarkets. Due to its uniqueness, the product can see a rise of 167% from 3-MM. Increasing in advertising from 9% -11 % of gross revenue and increase in consumer promotion and merchandising 3%-4% sees an overall increase in revenue amount.
What factors determine the demand for blades? How can demand be increased? Factors that determine demand for blades 1.
Purchasing capacity 2. Increase in economic growth would produce more professionals who would feel the need to look groomed 3. Also, increase in interactions especially among the younger population like college students etc. Has started to lead to acclimatization which in turn increases the need for grooming 4. Proper marketing How can demand be increased? 1. By increasing awareness about shaving 2.
Promotional kits and lucky draw schemes 3. Media advertising
How is Gillette doing in Indonesia? Has Gillette leveraged its first mover advantage? Letter Nationals Is making a pronto AT If we do a SOOT analysis for Gillette: Strength 1 . Gillette Goal Red is doing really well and the margin is also quite good 2. Gillette is on the right track in terms of devising strategy for distribution market Weakness 1 . Gillette Blue Blade has low brand awareness 2. Hiccup in the distribution market 3.
Attrition rate among managers 4. Competition for shelf life at supermarkets is intensified 5. Gillette Goal blue is not selling well Opportunity 1 .
Tap the rural market where salespeople who traveled with wares on bicycle are readily available. Threat 1 . Tiger/Cap Macomb is a competitor selling at lower cost and with good brand awareness.
2. Shaving incidence being lower, Gillette may not be able to sustain growth by focusing only on the blade market Considering that they have been able to overcome problems in distribution and managed to generate a profit of 20 percent on gross revenue in a country not very open to shaving: Gillette has leveraged its first mover advantage. How should Gillette accelerate the development of blade market in Indonesia?
The development of the blade market can be accelerated by: 1. Increasing the reach into the markets. 2 1 en excellent target group Is young, roan men Trot meme Income groups.
Additionally targeting men from lesser income brackets and from rural areas would accelerate sales. 3. Increasing advertising through radio media since most people there might not own televisions or be able to read 4. Continue promotion schemes and offers 5. Compete with local brands by proving individuality and quality of Gillette products 6. Improved distribution and inventory management