Indonesia, characterized by a significant yet impoverished rural populace alongside a comparatively smaller and richer urban demographic, presents an excellent opportunity for growth in shaving-related businesses like Gillette due to its yet to mature popularity of shaving. Gillette, a brand synonymous with premium razor blades and shaving systems, can devise its market strategies on the three C's analysis: company, competitors, and customers. The superiority of their razor blades is embodied in their pricing; they cost nearly four times more than those of their competitors.
Gillette has successfully dominated a key portion of the urban market, largely influenced by Western cultures and multinational corporations and their employees. The brand's marketing approach has proven effective in urban regions, with a planned 20% price increase for products set for 1996. Thus far, Gillette has
...largely concentrated on the urban demographic, offering products and promotions tailored for this consumer group. The customer: In Indonesia, a majority of 65% of the populace reside in rural regions while 35% dwell in or around metropolitan cities. Gradual yet firm economic growth is observed in Indonesia, with an average yearly Gross Domestic Product (GDP) escalation of 7%.
In Indonesia, most individuals shave about 4 to 9 times a month. However, due to physiological differences, this number may not necessarily increase. According to forecasts about income distribution, more people are expected to be earning an annual salary of ; $10,000 - the percentage is predicted to climb from 15.9% up to 20.6% between the years of 1995 and 2000. Alongside that, it's anticipated that there will be a decline in the lowest income bracket; those who earn around ; $2,000 yearly are projected to fall fro
34.4% down to 25.9%. Many Indonesians living in rural areas have not yet embraced shaving as a routine practice. But with increased awareness about shaving (aided by growing Western influences), these rural regions present substantial market potential for considerable growth.
Contenders: Renowned brands such as Tiger, SuperNacet, and Tatra pose significant competition to our double-edged razor blade offerings. These offerings cost less and are of inferior quality compared to those by Gillette. Other brands in the disposables category include Bic and Bagus, but Gillette currently commands dominance with 90% market share. While Gillette contends with serious competitors in the simple blade product market, it can utilize its robust distribution and marketing channels to gain a competitive edge.
Suggestion: In accordance to the 3 C's analysis, here's our actionable advice: * Take the lead in penetrating rural markets by offering suitable products and incentives such as free razors and economically packaged blades, coupled with a cost-effective educational program using relevant resources. * Start cultivating brand loyalty and upsell upscale products to rural consumers as their financial status elevate. During this brand alignment process, ensure attentiveness to local traditions, customs, and beliefs to prevent ostracizing potential clients.Indonesia
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