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St Memo

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Submitted By rohanverma
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I. Executive Summary

II. Market Analysis – 5Cs
Context
* Indonesian economy has been growing at a healthy rate of 7% Implies that even if shaving was a mature market, it would grow at a healthy pace. However, shaving is a relatively novel concept in Indonesia and there are many factors that contribute to a much higher expected growth rate of ~20% * Indonesia prevents foreign companies from directly importing or distributing its products CloseShave has to use local distributors to sell its blades in Indonesia * Indonesia has a large rural population (65%), but thus far CloseShave has mainly concentrated its sales efforts in urban locations CloseShave needs to reprioritize its geographical focus if it has to attain faster than average growth in shaving among urban men * Islands of Java and Bali are the main centers of population, commerce and growth (both urban and rural) CloseShave would do well to concentrate on these markets, before it starts to go after other islands
Company
* CloseShave is a global market leader in shaving products and other consumer product categories. Blades and razors contribute a significant share of its total business (40% or $2B) * Asia Pacific region, and more specifically, shaving business in Asia Pacific is very important for CloseShave ($500M or 10% of overall business) * Currently, Indonesia’s shaving market is ~240M in terms of blade volume (CloseShave has a 48% market share and sells 115M blades)

Customers * What are the different types…how do they buy? * Understand how the customer decides * The customers in Indonesia can be divided based on geography – urban and rural. * * Urban men have a high rate of shaving (80%) but low usage of store-bought blades (low shaving incidence rate, usage of store-bought blades vs. knives, and number of blades bought per year) * Urban men are also

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