Developing the Marketing Plan Case: Gillette Indonesia Essay

I. BACKGROUNDIn October 1995, Chester Allan, Gillettes country film director in Indonesia, was create his units 1996 merchandising 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 director vice president of Gillettes International Group.Allans plan communicate a 19% increase in blade gross revenue 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 close 200 million, Indonesia represented an important country in the portfolio of markets for which Effio and Jackson were responsib le. Effio wondered whether investment funds spending in marketing beyond the 1995 level of 12% of sales might further accelerate market development. Given the growth place of Gillettes business in other Asia-Pacific countries, Effio believed that a 25% to 30% increase in blade sales could be come upond 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 move along at its give birth pace? If so, what would that pace be?III. OBJECTIVEGillettes mission was to achieve worldwide leadership in its core 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. * procession the market to higher value products and shaving systems. * The poorer rural shavers cannot afford Gillette products and vitiate low-pri ce, low-quality brands such as Tiger and Tatra. * Problems with customs clearances could impact the entire manufacturing cycle. * shave was still under certain in Indonesia, but the incidence of shaving was increasing.OPPORTUNITIES THREATS* New-product operation and entry into and development of new markets were considered essential. * Research showed that higher-income, urban consumers were increasingly shop in supermarkets. Most sales of Gillettes higher priced shaving products were by these outlets. * The production team carefully planned the timing of materials inputs. Because of distribution and exile inefficiencies, the need for buffer inventories was substantial. * with rising incomes and improved Gillette distribution and display, consumers are abject to Gillette.IV. ALTERNATIVE COURSES OF ACTION1. There was increasing awareness of Western education practices, especially in urban areas, as a result of characterization to irrelevant media and the increasing presence o f multinational companies and their overseas personnel. 2. The liberalization of unconnected investment policy had increased private sector involvement in the economy the central government focused on developing al-Qaida in the poorer regions and on human resources.V. RECOMMENDATIONS3. Improving education 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 package shots would be superimposed.