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Gillette Indonesia Case Study

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1. What factors determine demand for blades?

There are many factors that determine demand for blades. The most basic factor is how many times a week someone shaves per week. If a person does not shave often, then they will not buy blades as often because their blades will not dull out as quickly. The quality of a blade will also play a role. If the quality of a blade is not good, it will dull out quickly. This can generate demand for higher end blades, which is where Gillette can capitalize on generating demand for their blades. Another factor is what appears in the media. When people consumers watch movies and television commercials and see good looking, well groomed actors, they will follow suit and emulate the actor’s appearance. Western grooming habits are becoming more noticed in Middle Eastern and Asian society, the clean cut look is becoming a desirable look. The only way to obtain this look is by shaving. This will obviously generate demand for blades.

The race of a person plays a huge role in the demand for blades. It’s a fact that people of the Asian race do not grow facial hair as quickly as people of Middle Eastern descent. If you don’t have to shave as often, then you will not buy blades as often. Regions where the population of men grows hair quicker are area’s where demand for blades will be higher. A country’s economy plays a large role in demand for blades. When businesses can operate at full capacity, there are more people employed. People need to look clean on the job to maintain a professional image. Shaving is a huge part of this image, as one cannot be taken seriously with a messy beard- especially in dealing with people from other countries.

Lastly, the amount of education people have about shaving will affect demand. Simply put, if people do not know how to shave, then they will not do it. If people do not shave,

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