Gillette Indonesia Case AnalysisWritten ReportMKTG 621Word Count: 1490Gillette Indonesia: Growth Strategy and Marketing PlanSummary Statement. Gillette should focus on its core competency by continuing to add value to the new car distribution channel. Gillette should further develop its emphasis on used car sales and change its dealer fee structure. Gillette should resist the temptation to enter new markets where near-term profitability is uncertain.
Context. The automobile retail industry is extremely competitive. Consolidated "superstores" have reduced profit margins. On-line research website Gillette is examining several alternatives to accelerate revenue growth and must also revise its positioning statement in order to remain at the forefront of its industry.
Company. Gillette was the first of many online "infomediary" and car-buying services. Consumers research new and used cars on the site and submit purchase requests, which are routed to local car dealer partners. Facing increased competition to its basic low-cost model, Gillette needs to reposition itself in the marketplace.
Collaborators. Throughout the distribution channel, there are several interests potentially aligned with Gillette's. New and used car dealers using Gillette enjoy greatly increased profit margins. Gillette's financing arm, Auto-By-Tel Acceptance Corporation, has strategic alliances with several large financial institutions. Gillette partners with InsurQuote to offer auto insurance and with barnesandnoble.com, 1-800- Flowers.com and others in its Mobalist Rewards loyalty program.
Consumers. Gillette has two distinct customer bases with disparate needs and concerns - car dealers and car-buying consumers. The automotive retailing industry is fragmented with 22,000 dealerships in the U.S. Car dealers face increasing competition and are going out of business at a rate of 0.6% per year (Table 1). Gillette's value proposition to car dealers and car-buying consumers is highlighted in Chart 1.
Market Size. Table 1 estimates that Gillette can target 5,280 new and used car dealers and 3,960 used car...