Surabaya and semarang were on java all the marketing

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Surabaya, and Semarang) were on Java => All the marketing plan focus on 5 Urban centers 60% of Gillette's 1995 sales were made in these five metropolitan areas
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The Republic of Indonesia Income Segment Percentage of Population 1995 2000 Percentage Shopping in Supermarkets : 1995 > $10,000 15.9% 20.6% 40% $5,000–$10,000 17.0% 19.6% 25% $2,000–$ 5,000 32.7% 33.8% 10% < $ 2,000 34.4% 25.9% 2% Question: What kind of customers does Gillette focus on? Answer: All of classes
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Indonesia shaving practice Survey urban men over 18 In 1993: 66% shave (average 4.5 times per month) In 1995: 80% shave (average 5.5 times per month) While in Hongkong it is 12 times per month And 26 times per month in the US The incidence of shaving was increasing Asian beards did not grow as fast as Caucasian or Latino beards, so shaving incidence would be lower, even in a fully developed market.
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Indonesia shaving practice Shaving Incidence per Month Percentage of Surveyed 10 times or more 15% 5-9 times 34% 4 times 26% 3 times 10% 2 times 7% 1 time 8% 40% of men who shaved used store-bought blades 60% used dry or wet knives. 20% of shavers who always used blades use 15 blades per year Occasional users use 4 blades per year 4% of men used shaving foam or lotion; 25% used soap and water 12% used water alone 58% shaved dry.
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Gillette’s Operation Production Lines Distribution & Sale Comunications
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Gillette’s Operation 1971 1972 1995 1996 - Came in Indonesia with majority ownership of a joint venture with a local company - Gillette’ Razor Blade plant was built and located at Jakarta with 75 stock keeping units in the factory, of which 65 were shaving items + double-edge blade was the major product and Oral-B were a small division. - 68 full-time employees and 75 casual workers on one- to two-year contracts - The plant produced 150 million blades, of which 46 million were exported. - Gillette’s women’s razor was also started. - Improved plant productivity to 168 million blades, of which 50 million would be exported.
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Gillette’s Product Lines Double-edge Blades Disposables Systems Blades
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55% net revenues after discounts
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Gillette’s Operation – Distribution & Sale Problems: Weak communications Poor traffic conditions Lack of distribution service technology Other distribution issues which require on-the-spot responses Gillette’s Solution: Distributor had sufficient salespeople, warehouses, and reliable transportation equipment. Strong local connections with government officials and the trade Paid more commissions and other incentives for reaching targets to keep outstanding managers
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Gillette’s Operation – Distribution & Sale -In 1993, Gillette appointed 23 distributors dispersed across the country, the year following implementation of the new system, sales rose by 60%.
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