Gillette Indonesia Case Study Notes
Gillette Indonesia Case Study Notes FMIB3
Hult International Business School
Popular in International Marketing
Popular in International Business
This 3 page Study Guide was uploaded by Mischa Rapt on Tuesday September 22, 2015. The Study Guide belongs to FMIB3 at Hult International Business School taught by Nick Imparato in Fall 2014. Since its upload, it has received 250 views. For similar materials see International Marketing in International Business at Hult International Business School.
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Date Created: 09/22/15
Gillette Indonesia 1 What factors determine the demand for blades How can demand be increased Determinants strong growth of Indonesian economyimproved living standards increase in western grooming practices high number of people entering workforcehigher spending power demographics in urban areas per month increase in number will determine demand are imp focus group new generation and trend of shaving value for money shelf life how consumers are of shaving cheap local disposable blades by tiger etc Increase demand by of shaving persuade rst time users encourage products stands offer free samples tap into extending to train them to increase ef ciency and reduce damage strong partners 2 Prepare an income statement projection for Gillette Indonesia shaving products similar to Exhibits 3 and 4 in the case Be prepared to explain the logic of your projection Sales Revenues in 1995 1996E 1995 1995 Total Revenues 230 322 Revenues from export 14 38 sales Revenues from in 216 359 country sales lncountry Sales A Shaving products 196 306 total sales Blades 103 128 Disposables 12 38 Sensor 56 154 Razors 20 33 Prep products 0 5 06 Nonshave products 20 31 Gross revenues from shaving 100 products Less Trade discounts 5 Net revenues 95 Less Variable manufacturing costs 30 Variable selling costs sales 1 commissions Variable distribution costs 6 Gross margin 58 Less Advertising 20 Consumer promotions and 5 merchandising General sales and administrative 8 costs Pro t from operations 25 Signi cant which allowed Gillette to establish the brand from expenditure on marketing Lower variable manufacturing costs due to into a more ef cient working unit due to marketing allowing Gillette to capture a bigger market share than 1995 lncrease in sales of sensor shavers due to it being shavers Slight increase to 38 3 How is Gillette doing in Indonesia quotthink global act localquot approach quot48 of market sharequot quot90 of premium priced segment for razorsquot there is a soid position despite market environment poses some threats effective marketing strategy persuading customers to shave for the rst time increasing incidence of shaving and trading up shavers able to make brand the epitome for shaving targets urban area responsible for 75 of countrys GDP gain from entering market at early stage high standard manufacturing facilities reduction in manufacturing time increased sales by 60 weaknesses 97 of brand awareness only 55 use it other potential threats are as razors were imported but packaged in country basic raw materials from local suppliers 4 Given the Gillette experience does it make sense to talk about a global market yes it does make sense but they would have to create market research on the demand of blades and what competitors they would have to face for each region market segmentation ta rget market demographics age gender location
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