Developing the Marketing Plan Case: Gillette Indonesia Essay

I. BACKGROUNDIn October 1995, Chester Allan, Gillettes country manager in Indonesia, was developing his units 1996 trade plan. Once completed, it would be forwarded to Rigoberto Effio, business director in Gilletes Asia-Pacific group based in Singapore. Each year Effio received and approved marketing plans for the 12 countries in his region, which reached from Australia to China. Once approved by Ian Jackson, Asia-Pacific group vice president, the overall marketing plan-for the region would be reviewed subsequently, along with other regional plans, by Robert King, executive vice president of Gillettes International Group.Allans plan projected a 19% increase in make sales in Indonesia in 1996 from 115 million to 136 million. This seemed reasonable given a 17% increase in 1995 over the previous year. With a population of almost two hundred million, Indonesia represented an important country in the portfolio of markets for which Effio and Jackson were responsible. Effio wondered whet her investment spending in marketing beyond the 1995 level of 12% of sales might advance accelerate market development. Given the growth rates of Gillettes business in other Asia-Pacific countries, Effio believed that a 25% to 30% increase in blade sales could be achieved in Indonesia in 1996.II.STATEMENT OF THE PROBLEMHow rapidly the Indonesian market for blades and razors could or would expand. Should the Indonesian market be allowed to just front along at its own pace? If so, what would that pace be?III. OBJECTIVEGillettes mission was to achieve worldwide leadership in its core mathematical product categories by developing marketing plan.SWOT ANALYSISSTRENGTH WEAKNESSES* The company emphasized geographic expansion along with research and development, advertising, and capital spending as drivers of growth. * Upgrade the market to higher value products and shaving systems. * The poorer rural shavers cannot afford Gillette products and buy low-price, low-quality brands such as Ti ger and Tatra. * Problems with customs clearances could impact the entire manufacturing cycle. * paring was still underdeveloped in Indonesia, but the incidence of shaving was increasing.OPPORTUNITIES THREATS* New-product activity and entry into and development of new markets were considered essential. * Research showed that higher-income, urban consumers were increasingly shopping in supermarkets. Most sales of Gillettes higher priced shaving products were through these outlets. * The production team carefully planned the timing of materials inputs. Because of distribution and transportation inefficiencies, the need for caramel inventories was substantial. * with rising incomes and improved Gillette distribution and display, consumers are moving to Gillette.IV. ALTERNATIVE COURSES OF ACTION1. There was increasing awareness of Western grooming practices, especially in urban areas, as a result of exposure to foreign media and the increasing presence of multinational companies and th eir overseas personnel. 2. The liberalization of foreign investment policy had increased common soldier sector involvement in the economy the central government focused on developing infrastructure in the poorer regions and on human resources.V. RECOMMENDATIONS3. Improving culture system ensured that foreign companies would be attracted to the major urban areas, fueling further growth. 4. Gillette headquarters developed television advertisements for use worldwide, with the intent that local voiceovers and local box shots would be superimposed.