Gillette Indonesia: Objectives and Plan for Rapid Growth for 1996

An assessment of the Indonesian growth potential suggests a growth rate of about 25%, for the shaving products market for 1996. With adjustments to the Go-To-Market strategy, the plan for Gillette Indonesia sets an objective of 31% increase in units of blades sold. A review of the surrounding conditions of the market and the actual situation will be presented, followed by a brief description of the overall market potential analysis, to then present the plan for next year.

Company Background:

Gillette was founded in Boston in 1901 and is the world leader in ten product categories: Razors and Blades, Writing Instruments, Correction Products, Men’s Electric Razors, Toothbrushes, Shaving Preparations, Oral Care Appliances, Pistol-Grip Hair Dryers, Hair Epilators, and Hand Blenders. Its products are distributed in 200 countries. Gillette’s mission is to achieve worldwide leadership in its core product categories.

Gillette Indonesia is a product of a joint venture with a local company and started in 1971. The manufacturing plant was built in 1972, with a strong focus on shaving products and plans for expansion to be finished in 1997 (to 230M Double-Edge Blades per year). With a market share in the shaving products of 48% by 1995 and a brand awareness of 97%, it is well positioned in the country.

Indonesia PESTEL Analysis for 1996:

Political:
President Suharto has been managing the country since 1965, providing continuity and stability. The policies that his government has set, provide an incentive for foreign companies to invest in the country. There are no signs for any change in the political power for 1996.

Economical (Macro-Economic):
The Gross Domestic Product has grown at a high pace (7%) for more than 20 years. The GDP is expected to grow 6.2% in 1996. The expansion of