My MBA presentation for Gillette. Looks like there are some formatting issues with this version...but the content got us top marks in my cohort.

2. Executive Summary
Product Analysis
Kolter Analysis
Wiersema Analysis
Value Map Positioning
Product life cycle
Company Position
SW Analysis
11 Sources Competitive Advantage
OT Analysis
Porter’s Forces Analysis
Competitive Advantage
Market Share
Market Growth Potential
MDI vs SDI
Situation Analysis
Strategic Alternative
Final Recommendations (SIVA)

3.  The strategic opportunity is to develop the Indonesian shaving market, increasing
our unit sales to 19% over the next one year and targeting to increase the unit
sales by 200% over the next 10 years.
 Gillette can easy achieve the 200% increase in unit sales, as the Indonesian
shaving market has a big growth potential as current MDI (Market Development
Index) is 39%.
 Alternatives:
 Maintain existing growth plan
 Increase market share by 25-30%
 Increase spending to enter into female products.
 Creative destruction and reallocation of budgets to increase awareness and profitability
 Strategic recommendation is spend additional 2% of our revenue on “First Shave
Free” campaign, reduce the price of double edge blade by 20%, maintain
disposable and system promotions while increasing profitability by 3%

4. The core benefit of
shaving is removing hair
The Potential Product is a
complete personal
experience which is a
habitual, daily ritual to
feel better and look
attractive.
Beyond blades, Gillette is
providing complete
grooming solutions for
male and female

5. Building up this Perceptual idea

8.  Double Edge Blade
has reached a mature
market.
 Disposable Blades
and Shaving Systems
will be our future
 Disposables &
Shaving –systems are
innovative, high
margin products
positioned early in
the product life cycle

9. Strengths:
 Globally, the Gillette brand name is
synonymous for high quality.
Locally, the Indonesian word for
blade sounds like Gillette
 48% of market share for blades
 Superior Technology and
Continuous Innovation
 Product differentiation to target
different segments of the
population
 Highly efficient local manufacturing
plant
 Hard earned distribution network
Weaknesses:
 Lack of rural distribution is missing
73.9 million potential consumers
 Global Marketing emphasis not
suitable for the Indonesian Markets
 Existing distribution network suffers
from weak communication networks,
poor traffic conditions, lack of
distribution service technology and
poor cash flow
 Local Manufacturing capacity – scope
to improve productivity is currently
limited

10. 10
Superior Inputs
Superior
Operations
Local Production
Superior
Offering, Branding & Positioning
Synonymous with high quality –
The Best A Man Can Get
Superior
Technology
Innovation Investment
Superior Access
Effective Distribution
Superior Target
Developed Premium Price Segment
Superior CollaboratorsSuperior Data & Insights
Superior Market Research
Superior Customer
Of which we hold 90%!

11. Opportunities:
 Strong Economic growth – average
annual GDP growth of over 7% for
more than 20 years
 Rural Market represents Blue Ocean
opportunity with 68% of total
population
 Trend setting shavers are looking to
‘trade up’.
 Transition higher margin products
to local manufacturing plant
 Women’s shaving market in the
initial stages of development
 Low awareness for shaving
preparation – further product
entrants
Threats:
Low incidence of shaving in the Asian
population
Rural distribution might never reach ideal
efficiency
Inconsistent regional economic growth
with 80% of population earning <
$10,000/yr
High margins invite competition
Government regulation prohibits a foreign
company from directly importing or
distributing its products
Cultural practices impacting employee
productivity and distributor relationships

12. Intensity of
Rivalry
LOW
Power of
Suppliers
LOW
Threat of
new
Entrants
LOW
Power of
Buyers
HIGH
Substitutes
HIGH
Mitigate this risk
though branding,
advertising, and
creating system
lock-in
Mitigate this risk by
our strategic product
positioning

13. UNATTRACTIVE AVERAGE ATTRACTIVE
WEAK DISINVEST PHASED
WITHDRAWL
DOUBLE OR QUIT
AVERAGE PROCEED WITH CARE TRY HARDER
STRONG GROWTH LEADER
COMPETITIVEADVANTAGE
CATEGORY ATTRACTIVENESS
Double Blades Here
Saturated High
Awareness Cash Cow
Disposables here
are growing but
not as high margin
as systems. Yet still
a promising market
In the Systems
category … we are
very attractive and the
leaders. Offers high
margins
CASH GENERATOR
PROCEED WITH
CARE
LEADERS

14. Share Growth Opportunity Limited Growth
Very High Growth Potential Growth with Market
Development
0
100
50
10050
MDI39%
SDI 48%

15. 20.0%
48.0%
15.4%
16.6%
Not shaving customer
Shaving knives
Using Gillette blades
Using competitor blades

16. Aware
Not Aware
Not Attractive
Attractive
High Price
Price OK
Intend to Buy
Don’t Intend
No Purchase
Purchase
97
%
41
%
12
%
3%
59
%
88
15
%
84
%
96
%
85
%
16
%
4%
60
%
40
%
55
%
4%
1%
45
%
96
%
99
%
59
%
98
%
99
%
41%
1.6%
1%
7.4%
10%
14%
49%
14%
3%
.0016%
0.1%
2.5%
3.9%
34%
59%
0.00009%
0.001%
0.019%
0.28%
11.5%
88%
Identified Market Leakage in key segment products presents HUGE opportunity for growth

17. Vision
Goals
Objectives
Develop the Indonesian shaving market though building our total brand
value by delivering consumer value faster though innovation & leadership
to maintain & increase our market dominance
Increasing our Market Share , Brand Awareness, & Profitability while
fostering creative destruction getting our customers to ‘trade up’ into
more complete shaving systems
Improve Rural Distribution, Localization of production to improve
margins, Driving customers into new systems, Create a personal care
experience
Strategic Alt. 1
Strategic Alt. 2
Strategic Alt. 3
Increase our Unit Sales by 19% in 1996, increasing prices by 20%
while maintaining budgets and revenue growth
Increase our Unit Sales by 19% in 1996, while decreasing Double
Edge prices, reallocating budgets, increasing profitability
Increase our Unit Sales by 25- 30% in 1996, increasing prices by
20%, budgets, and revenue growth

18. To Achieve the Top Management’s target 25%-30% … Unit Growth in Sales will provide an
inefficient net marketing contribution
1995 1996 (19%) 1996 (25%) 1996 (30%)
# Units sold 115 mm 136.9 mm 143.8 mm 149.5 mm
Sales Revenue 19.6 mm 27.6 mm 29.4 mm 30.5 mm
Marketing Cost
%
12% 12% 15.8% 19%
Marketing Cost
$
2.4 mm 3.3 mm 4.6 mm 5.8 mm
Net Marketing
Contribution
17.2 mm 24.3 mm 24.8 mm 24.7 mm

19. 1995 #1 - 1996 #3 - 1996
Revenue 23 mm 32.2 mm 30.9 mm
Net Profit
%
20% 20% 23%
Net Profit $ 4.6 mm 6.4 mm 7.1 mm
Profit
Margin
48%
Cost to
Manufacture
Retailers
Margin
Retail Price
22%
Customers
Competition
Company
Cost
Experience (Locally)
Wholesale
Price
$0.55$.21 $1.00$0.78

20. Solution
Incentive
Value
Access
Creative Destruction of double edge blades
Promoting Men’s Disposables & Systems
Introduction of Women’s Shaving Systems
Decrease trade discounts into 5% (Focused on Disposables &
Systems
Decrease price of Double Edge blades
Run ‘First Shave Free’ Program (2% Trade Discount Savings)
Allocate 9% of Advertising budget between Men’ Disposables &
Systems, Women’s Systems & Shaving Products
Run In-Store Promotions for above systems w/ remaining 3%
Decrease price of double edge blades
Increase Disposable & Systems price by 20%
Developing 65% of total population through rural
distribution & PULL Strategy
Increase our access in supermarkets targeting 77% of
households

21. AnyQuestions on our last
day of CLASS???