Gillete Project
-
Upload
mohammed-akbar-ali -
Category
Documents
-
view
44 -
download
5
Transcript of Gillete Project
HISTORYThe American Safety Razor Company (later named the Gillette Safety Razor Company) was founded in 1902. That brand, ubiquitous with most of our first-ever shaves, has been around for about 112 years!
It’s lived through some of the most important moments in history; both World Wars and Nazi Germany, the assassination of Gandhi, the formation of the People’s Republic of China, the Kennedy assassination, the Clinton impeachment and the election of the first black President of the United States.
Founded by King C. Gillette (awesome name), Gillette was a brand built from the ground up. Having worked as a traveling salesman for brief spell, the idea of a safe razor with disposable blades came to Gillette during an auspicious morning shave. By 1903, the idea was realized (thanks to MIT-trained engineer Emery Nickerson), patented and began production at headquarters in Boston.
By 1903, Gillette had sold 51 razors and 168 blades. The following year, more than 90,000 razors and 120,000 blades.
By 1908, Gillette was manufacturing across the U.S., Canada, England, France and Germany…
It was during this time that King popularized the idea of selling razors cheaply to increase the market for blades. A model that most razor brands (including Gillette) use to this day. In fact, Microsoft, Sony and Nintendo use the very same strategy with their games consoles.
Once World War I rolled around (1918), Gillette took its next leap when they were contracted to supply the U.S Armed Forces with approximately 3.5 million razors and 32 million blades to keep our boys looking smart.
From there, things snowballed:
In 1922 Gillette became royal purveyor to the Prince of Wales.
In 1939, Gillette sponsored the 1939 World Series for $100,000. Their razors and blue blades sold four times better than they had expected. It was the beginning of a lifelong partnership with sport.
In 1942, on to a good thing, they started sponsoring The Gillette Cavalcade of Sports – a radio sports show.
In 1946, they introduced the first ever blade dispenser to save guys from having to unpackaged individual blades.
In 1969, Gillette began coating their blades in platinum to resist corrosion.
In 1985, they were the first razor brand to sell razors with a lubricating strip.
In 1990, they were listed #20 in the Fortune 500.
In 2007, Tiger Woods, Roger Federer, and Thierry Henry became arguably the most well-known trio of Gillette ambassadors to date.
In 2010, they launched the ProGlide – SCforM’s favourite razor.
History-
The quest for a better way to remove facial hair or to shave has taken many twists and turns over the centuries. The years between 1800 and 1900 have been coined the “Golden Era” of the straight edge razor. Men went to barbers to have their mustaches and beards carefully trimmed. Interchangeable blade-razor sets and “seven-day” sets were popular in the 1800s.
But it wasn’t until 1901 that King C. Gillette fundamentally transformed shaving with the invention of the first safety razor, which was granted a patent on November 15th, 1904. With the advent of the safety razor, a man did not need to send his straight edge razor to the barber for sharpening. The idea of clamping a smaller version of a straight edge onto a handle was genius – the blade was easier to control, which resulted in fewer nicks and cuts, and was replaceable when it became dull.
In the past century, Gillette has been amongst the leaders in shaving innovations, delivering cutting edge science and technology to consumers. When King C. Gillette introduced his revolutionary safety razor, he founded a company on the time-honored credo, “There is a better way to shave and we will find it.”
Gillette remains true to this spirit even more than a century later and continues to deliver on that promise with ground-breaking razors featuring innovative blade technologies from the Gillette Trac II to Sensor, MACH3 and, of course, Fusion and Fusion ProGlide.
Today, Gillette has two dedicated R&D centers – in Boston, USA and Reading, UK – where most of its product R&D takes place. The two R&D centers are amongst 14 such P&G facilities where Gillette products are developed.
Its South Boston Manufacturing Center, known also as the Gillette World Shaving Headquarters, has been the technical center for developing and manufacturing the newest wet shaving technology platforms, using state of the art proprietary technology since 1903. The Reading Innovation Center in the UK has been a world class innovation powerhouse that creates ground-breaking experiences that have delighted consumers since 1959.
Gillette and the World of Sports:
Gillette has a rich sports heritage that provides natural synergies with our reputation as a performance brand. Sports marketing play an important role for the Gillette brand, helping us to tap into a key passion for men and strengthening our connection with consumers.
Through the years, Gillette has had partnerships with many sportsmen, including world-class athletes. Gillette’s enduring association with sports goes as far back as the early 1900s. Gillette had the vision to see the value in connecting the brand with top-tier sports and athletes. In 1910, Gillette produced a print ad with images of baseball greats such as Pittsburgh Pirates’ infielder, Honus Wagner, in ads for the original Gillette Safety Razor.
Joseph Spang Jr, who became president of Gillette in 1938, used all-out sports promotion, beginning with the 1939 baseball World Series. From baseball, Gillette quickly moved
on to football, and snapped up the Orange Bowl and Sugar Bowl, and later the Cotton Bowl, and the biggest collegiate spectacle of all, the Rose Bowl. However, boxing probably gave Gillette the most payback for its advertising dollar because it delivered to an overwhelmingly male audience suited to Gillette’s overwhelmingly male product line.
It led in 1942 to the Gillette Cavalcade of Sports, Gillette’s signature title for all its exclusively sponsored sports events. Cavalcade of Sports presented nearly all the big national sports events and was America’s premier vehicle for radio and television sports broadcasting for about 25 years.
The 1952 World Series would bring another memorable first – the introduction of what was one of the most effective television jingles of all time, “To Look Sharp, ev’ry time you shave/To feel sharp, and be on the ball/To be sharp…”
For that same World Series telecast, Gillette introduced another ditty that was in the same league as “Look Sharp” for its longevity and latter-day nostalgic recall. This was the: “How’re Ya Fixed for Blades” of startled men in their undershirts caught in mid-shave, their faces lathered up and razors poised.
Sharpie the parrot became one of America’s most recognized cartoon characters of the 1950s, and for a while, was almost as well known as Donald Duck and Mickey Mouse.
Over the years, Gillette has continued its efforts to increase involvement with top-level sports beyond signature events by partnering with strong properties such as Major League Baseball, NCAA Basketball, NCAA Football, NASCAR, PGA Tour, Champions Tour, LPGA Tour and the National Hockey League.
Beginning in the 1970s, Gillette sponsored international events such as the FIFA World Cup, rugby, the Gillette Cup in Cricket and Formula One racing.
In 2004, Gillette began a partnership with football star, David Beckham, which represented a major enhancement to Gillette’s sports marketing. Beckham was soon featured in the company’s worldwide consumer advertising and promotional campaigns and the platform clearly transcended sports.
Three years later in February 2007, Gillette launched the Gillette Champions program that highlighted the athletic and personal accomplishments of three of the world’s greatest athletes – Roger Federer, Thierry Henry, Tiger Woods – as they personified the essence of Gillette’s brand and were known for their top performance, truly representing the best in their respective sports. The Gillette Champions program was the largest sports-marketing initiative for the brand and was rolled out to more than 150 markets through various marking initiatives.
Today, Gillette remains a strong supporter of the world of sports.
Key Dates:
1901: American Safety Razor is founded by King C. Gillette.
1904: King Gillette's safety razor is patented.
1918: Gillette manufacturer’s razors and blades for soldiers during World War I.
1942: The Cavalcade of Sports program is formed to oversee the company's various advertising and promotional activities in athletics.
1967: Braun AG is acquired.
1971: Company is organized into four domestic divisions: the Safety Razor Division; the Toiletries Division (featuring Right Guard antiperspirant); the Personal Care Division; and the Paper Mate division.
1991: Gillette ranks 20th among the Fortune 500.
1996: The Company acquires battery manufacturer Duracell.
2005: Merged with Proctor and Gamble
PERSONAL GROOMING INDUSTRY – AN OUTLOOKDue to increased awareness and rising income levels, the industry is expected to undergo a major shift from traditional double-edged razors segment to twin and triple blades razors segment. Razor blade market has tripled from Rs 2 billion in 1986 to Rs 6 billion in 2006. In value terms, in 2003, double-edged blades comprised 78%, systems 15% and disposables 7%.
Hair Care 31%
Skin Care16%
Bath & Shower product46%
Colour cosmetic 6%
Fragrances1%
Personal Grooming Industry
As per AC Nielsen/ORG's estimates, the domestic shaving preparations market in 2003 was pegged at Rs 1.5 billion. Within the industry, cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. However, current consumption is still below many countries in Asia which shows that there are further growth opportunities.
In 2004, market size of men's personal care segment is estimated at approximately Rs 750 crores, with Gillette having the largest market share. Thus, the industry is growing at a decent rate but still is at an infant stage and this offers great opportunities to players like Gillette and Colgate Palmolive to expand their customer base to include higher number of lower middle class people and thereby increase their revenues and profitability.
The shaving market in India is estimated at around Rs 1,500 crores. The market is growing at around 7-8 per cent annually. Gillette is the market leader in razors and blades. Its market share has been growing consistently.
A significant percentage of this market comprises consumers who get their shaves done at salons. The potential is large as Indian men on an average shave only 2.5 times a week, far lower than, say, Koreans and Japanese.
GILLETTE
Company Profile
Vision: The Gillette co. is a globally focused consumer products marketers that seeks competitive advantage in quality, value added personal care and personal use product. We are committed to build shareholder value through sustained profitable growth.
Mission: To build total brand value by innovating to deliver consumer value and customer leadership faster, better and more completely than our competition.
Gillette India Limited (GIL) is one of India's well-known FMCG Companies that has in its portfolio GILLETTE MACH 3 TURBO, ORAL-B and DURACELL - world's leading brands and has carved a reputation for delivering high quality, value-added products to meet the need of the consumers.
Incorporated in the year 1985 as Indian Shaving Products Limited, now Gillette India Limited, its products speak for themselves. The company is always been known for the strength of its brands, and always continues to penetrate deeper into the hearts of Indian Consumers.
In the year 1990-91, the company launched two products, first was 7 0'Clock EJTEK PII Shaving System and second was shaving cream with three variants. This was the First time that a shaving cream was introduced in Indian markets with special features. In the Year 1991-92, the company launched new technology Gillette products.
In the year 1992-93, the company launched the first advanced shaving product under the Gillette brand name Gillette Presto ready shaver all over India. The company earned distinction of being included for the first time in the top 100 companies in India, in terms of Market capitalization as published in Business today.
In the year 1993-94, with the launch of Gillette Presto Ready shaver in February 1993, the company commenced the launch of Gillette Shaving Products in India.
In the year 1995-96, launch of 7 0'Clock Ready II ready shave and prelaunch of shave cream in two variants, further strengthened the Brand name. During the year the company also launched under a distribution arrangement tooth brushes under a well known international brand name Oral-B, which met good success.
In the year 1996-97, the company launched the latest state-of-the-art Gillette Sensor Excel shaving systems which met excellent consumer response. With the launch of these various products, the portfolio of Gillette branded products has increased significantly.
In the year 1997, the company launched World renounced Gillette Sensor Excel for Women shaving system, which met great response. It also launched Gillette Shave foam which was met with good consumer response.
In the year 1998, the company successfully launched the Gillette Series range comprising Shave gel, Shave Foam, After Shave Splashes, Conditioners and Deodorants, thereby making it the premier male grooming company.
In the year 1999, the company introduced Gillette Series shave gel tube and Gillette Sensor Excel single cartridge pack. Also successfully launched Cool wave and Wild Rain range of personal grooming products under the Gillette series line. In the First month of new Millennium, the company launched Gillette Mach3.
In the year 2000, the company launched successfully Gillette Sensor Excel for women grooming category, and also launched Pacific Light. It also launched Geep laserlite, a Sport flashlight. Company successfully consolidated Duracell and Wilkinson business to leverage distribution strengths with mega displays and sales promotion.
In the year 2001, the company launched the Gillette Series Arctic Ice Line of products during the first half and undertook a series of very successful consumer promotions across product lines. It also launched the Gillette Series Satin Care for Women Wild Berry Line, the Cool Blue Mach 3 and Gillette Centennial Packs during the course of the year.
Gillette India was ranked amongst the Top Ten Best Employers of India in Best Employers of India conducted by Hewitt Associates and Business Today magazine.
In the year 2002, this was the year of turnaround for the company. In the first Quarter of 2003 unveiled a whole new range
of premium displays and POS of Duracell to establish leadership in alkaline batteries segment.
In the year 2003, Company successfully re-launched Gillette Foam in 4 Variants .Duracell also launched its Ultra M 3 AA batteries, which was well received by consumers. Oral Care launched Power Oral Care brushes, which were well received in the market. Towards the End of 2003, Company launched Gillette Vector Plus.
In the year 2004, the Company launched Storm Force, a revolutionary after shave splash and New Ultra Comfort Shaving Gel. In the fourth Quarter, Company launched two new Gillette Series Tube Shave Gel variants, namely for Sensitive skin and moisturizing, to suit different skin types.
In the year 2005, Company launched new improved Gillette Vector Plus featuring all new contemporary look. The Gillette Company, USA was acquired worldwide through merger in October, 2005 by Procter& Gamble Company, USA creating the largest Consumer products Company in the World.
In the year 2006-2007, Company launched Gillette Presto Plus for more discerning consumers. Oral B brand launched Oral B Vision and Kid in Premium Market Segment.
In the year 2007-2008, Company launched The Gillette Winners program that had sports legends Roger Federer, Thierry Henry and Tiger Woods and Rahul Dravid.
An innovative program "Free Dental Check up" was organized to enable consumers to benefit from expertise of professional dentists at no cost. Oral-B brand launched a new variant "Shiny Clean" targeted at the value segment.
2009Gillette India Ltd has appointed Mr. Anil Kumar Gupta as an Additional Director of the Company pursuant to Section 260 of the Companies Act 1956, with effect from March 28, 2009 until the date of the next Annual General Meeting.
Mr. Gupta will be an Independent Director on the Board of the Company.
2011Mr. Deepak Acharya has resigned as Company Secretary and Compliance Officer with effect from December 01, 2011 consequent to his International Assignment with P & G Switzerland and relocation to Geneva.
2012Gillette India Ltd - Change in Director.
Gillette Organizational StructureGillette India now has the organizational structure of P&G
worldwide. The key elements are:
1. Global Business Units (GBU ‟ s) - build major global brands with robust business strategies. P&G moved from four business units based on geographical regions to seven
business units based on global product lines. The various GBUs are:
Baby Care/ Family Care Beauty Care/ Feminine Care Fabric and Home Care Snacks & Beverages Health Care
2. Market Development Organizations (MDO) - build
local understanding as a foundation for marketing
campaigns. P&G has eight MDO.
North America Asia/India Australia Northeast Asia Greater China Central-Eastern Europe/Middle East/Africa Western Europe Latin America
3. Global Business Service (GBS) - provide business technology and services that drive business success. Different GBS Centers are:
GBS Americas located in Costa Rica GBS Asia located in Manila GBS Europe, Middle East and Africa located in Newcastle
GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES
Key Executive Gillette India Limited:
Name Board Relationship
Title Age
Shantanu Khosla
164 Relationships
Managing Director, Director and Member of
53
Share Transfer & Shareholders/Investors Grievances Committee
T.J Buch No Relationships
Chief Financial Officer …
Amit k. Vyas 5 Relationships Compliance Officer and Secretary
45
Board Members Gillette India Limited:
Name Board Relationship
Primary Company
Age
Saroj Kumar Poddar
50 Relationships
Texmaco Rail & Engineering
Ltd.
67
Shantanu Khosla
164 Relationships
Gillette India Limited
53
Akshay Poddar 46 Relationships
Zuari Agro Chemicals
Limited
37
Chittranjan R. Dua
48 Relationships
Gillette India Limited
62
Anil Kumar Gupta
7 Relationships Gillette India Limited
61
Executives Committees – Gillette India Limited:
Committee Name
Chair Person Board Relationships
Members
Audit Committee
Chittranjan R. Dua
48 Relationships 5 Executives
Corporate Governance Committee
Akshay Poddar 46 Relationships 3 Executives
MANAGEMENT
Name DesignationA.K Gupta DirectorA. Poddar Director
Amit K. Vyas Co. Secretary and Compl. Officer
Amit K. Vyas SecretaryB.S Mehta DirectorC R Dua DirectorG. C Das Director
Pramod Agarwal Additional DirectorS.K Poddar ChairmanS. Khosla CEOS. Khosla Managing DirectorT J Buch Chief Financial Officer
ORGANISATIONAL CHART
Oral Care(Oral B Brand)
Braun(Electrical Appliances)
Portable Power(Duracell)
Grooming(Blades & Razors)
Global Business Management
Latin America
North America
AsiaPacific
AfricaMiddle East
Eastern Europe
Western Europe
Eastern Hemisphere
Commercial Operations
Gillette Company
Western Hemisphere
GILLETTE INDIA LIMITED:
Foundation of Gillette India: Gillette India was incorporated on 9th February 1984 at
Rajasthan. House of Poddar Enterprise (HOPE) and Gillette Company, U.S.A. (Gillette), promoted it. Gillette India manufactures and markets Gillette Grooming Products and distributes Oral – B and Duracell products. More than 60 % of the products sold in India are locally manufactured by Gillette India. Parent company Gillette (Refer Time Line, section 10.1) owns a majority stake in Gillette India.
Company entered into a foreign collaboration agreement with HOPE for setting up of a company for the manufacture of stainless steel razor blades in which Gillette agreed to subscribe 24% of the equity capital. This agreement provided technical collaboration by Gillette over the full range of technical know-how and technical assistance for the manufacture of razor blades, razors and shaving systems.
In 1985, the company came out with an IPO for raising Rs 26 million to fund the setting up of its plant at Bhiwadi in Rajasthan. Company placed a plant for the manufacture in the first phase, 200 million stainless steel razor blades per annum in the starting.
Blades manufactured by the Company were of two types, the premium 7 O'Clock, Ejtek Super Platinum and the stainless brand 7 O'Clock Ejtek Super Stainless. Company took over Sharpedge Ltd., by acquiring the entire share capital of that company.
Company also merged Duracell (India) Pvt. Ltd. and Wilkinson Sword India Ltd. with the company. Company introduced new twin blade shaving system called 7 O'Clock Ejtek P II with platinum enriched edges in 1987 and changed the shaving system in the India. Sabre Pens Ltd., Sheen Dental Products Ltd., Klosershav Products Ltd., and Vanity Cosmetic Ltd., are wholly owned subsidiaries of the Company.
During the mid-nineties, the company's product range widened with new products being introduced in the market
namely, Gillette Presto ready shaver, 7O'Clock Ready-II shaver, Gillette Sensor Excel shaving system, Gillette shave gel, conditioners, deodorants, etc.
It also started distributing Oral B toothbrushes, Duracell range of batteries and Luxor and Parker pens. Gillette enhanced its range in men’s shaving products; it has also entered the women's shaving product segment.
Gillette’s Strategy in India-The Indian shaving products market is characterized by a 97%
share of double-edged blades - a business dominated by the
Malhotras, with brands like Topaz and Panama. Instead of going
head-on against them in this highly price-sensitive market, ISPL
has chosen to focus on premium products. The strategy has been
to bring more people into the twin-edged segment, and then
gradually move them towards even more premium products. Also,
by segmenting the market with offerings at different price points -
7 O'Clock, Sensor and Mach III, ISPL offers a continuing upgrade
path for users.
Sales - Gillette India's sales jumped 106 per cent to Rs 516.80
crores after the addition of new businesses from the merged
companies. But operating profit margins of the merged entity has
dropped to 12.9 per cent in 2000, from 19.3 per cent in 1999. As
a result, Gillette India's operating profits rose by a lower 38 per
cent to Rs 67.16 crore. This suggests that the merging companies
have far lower levels of profitability than Gillette India. Presently
Gillette India Ltd today announced 36.6 per cent higher net profit
at Rs 61.22 crores for the 12 months ended December 31, 2004
on 9.73 per cent growth in sales at Rs 446.57 crores.
Structure - Post Gillette P&G merger, Gillette has adopted the
organization structure of P&G 2006 onwards and effective July
1,06 relocated its headquarters from Gurgaon to P&G Plaza in
Mumbai, which will house all P&G subsidiaries in India. P&Gs
organizational structure is broadly divided into three heads: GBU
(Global Business Unit), MDO (Market Development Organization)
and GBS (Global Business Services). Gillette moved from business
units based on geographic regions to GBUs based on product
lines.
MDOs develop market strategies to build business based on local
knowledge and GBS bring together business activities such as
accounting, human resource systems, order management and I.T,
thus making it cost effective.
Product DetailsCompany Manufacture stainless steel razor blades. Gillette India
has a wider portfolio of core business of shaving products sold
under Gillette, 7‟0 Clock and Wilkinson brands, Battery and
flashlights business and oral care products (OralB).
Company has strong presence in shaving razor blades market. It
has the premium quality 7 O'Clock Ejtek shaving brush, 7 O'Clock
Ejtek P II shaving system with a metal spine and a shave cream in
three variants, Gillette Presto Ready shaver, Ready shaver under
the Brand 7 O'Clock Ready II, tooth brushes under the well known
international brand name Oral-B, Gillette Sensor & Sensor Excel
shaving systems which met with an excellent consumer and trade
response, Gillette Shave Foam, Gillette Aerosol" shaving cream,
new generation triple blade shaving system Mach3Turbo etc.
Company also entered into ladies personal care segment with the
launch of the Gillette Sensor Excel for women. Company has
strong diversified portfolio to increase its male personal products
coverage. Company has tied up with Rediff-on-the-Net e-
commerce to market its product and increase its customer base.
Gillette Core Business
BRAND PORTFOLIO ANALYSIS
PRODUCT ANALYSIS:
Company Manufacture stainless steel razor blades. Gillette India has a wider portfolio of core business of shaving products sold under Gillette, 7‟0 Clock and Wilkinson brands, Battery and flashlights business and oral care products (OralB).
Company has strong presence in shaving razor blades market. It has the premium quality 7 O'Clock Ejtek shaving brush, 7 O'Clock Ejtek P II shaving system with a metal spine and a shave cream in three variants, Gillette Presto Readyshaver, Ready shaver under the Brand 7 O'Clock Ready II, tooth brushes under the well known international brand name Oral-B, Gillette Sensor & Sensor Excel shaving systems which met with an excellent consumer and trade response, Gillette Shave Foam, Gillette Aerosol" shaving cream, new generation triple blade shaving system Mach3Turbo etc.
Company also entered into ladies personal care segment with the launch of the Gillette Sensor Excel for women. Company has strong diversified portfolio to increase its male personal products coverage. Company has tied up with Rediff-on-the-Net e-commerce to market its product and increase its customer base.
Gillette has always remained the technological, market leader in the razor division of the men’s grooming segment. Its‟ high brand awareness, market acceptance as a technological leader for hi-performance razors and high brand equity were compelling reasons to penetrate and develop the entire value chain of the men’s grooming industry (razors, after shave and shaving gel/foam).
Product Range:
Trac II was the world's first two-blade razor, debuting in
1971. Gillette claimed that the second blade cut the number
of strokes required and reduced facial irritation.
Trac II Plus is an identical model but adds a lubricating strip
at the top of the blade. The blades and handles are
interchangeable.
The European versions of the Trac II and Trac II Plus are
known as the GII and GII Plus respectively.
Atra (known as the Contour, "Slalom" in some markets) was
introduced in 1977 and was the first razor to feature a
pivoting head, which Gillette claimed made it easier for men
to shave their necks.
Atra Plus featured a lubricating strip, dubbed Lubra-Soft.
Gillette Sensor debuted in 1990, and was the first razor to
have spring-loaded blades. Gillette claimed that the blades
receded into the cartridge head, when they make contact
with skin, helping to prevent cuts and allowing for a closer
shave.
The Sensor for Women was released around the same
time and is nearly identical, but has a wider cartridge head.
Sensor Excel was released in 1995. This featured "Micro
fins," a piece of rubber with slits at the bottom of the
cartridge and Gillette claimed this helped to raise facial
hairs, making for a closer shave.
Sensor 3 has three blades instead of two. All Sensor
handles can use all Sensor cartridges. The Sensor range
remains in production.
Blue II is a line of disposable razors. In Latin America, it is
marketed as the Prestobarba.
Blue 3 is a line of three-blade razor, cheaper version of
Sensor 3 (Sensor compatible). Available also in disposable
variant.
Mach3 The first three-blade razor introduced in 1998, which
Gillette claims reduces irritation and requires fewer strokes.
It claimed five improved micro fins, improved spring blades,
and a pivoting head with greater flexibility than previous
Gillette products.
It used a blue lubrication strip that faded as the razor was
used to encourage users to change their blades more
frequently. The Mach3 razor and blades is the best selling
razor of all time.
Mach-3 disposable The above with a different plastic
handle.
Mach3 Turbo had ten micro fins as opposed to the five on
the original, a new grip and claims improved lubrication and
"anti-friction" blades. All Mach3 blades are interchangeable
between the three products in the range, so it is possible to
use the Mach3 Turbo blades on a Mach3 razor.
Mach3 Turbo Champion has a slightly different handle
design.
M3Power is a battery-powered version of the Mach3 Turbo
razor which can also be used with the power switched off.
The blades differ from Mach3 Turbo in having what Gillette
says is a new blade coating which it describes as "Power
Glide".
The Mach 3 Power Nitro has a slightly different handle
design.
Venus is a female version of the Mach 3. Mach 3 blades can
attach to a Venus handle and vice versa.
Venus Divine is a female version of the Mach3 Turbo.
Venus Vibrance is a female version of the M3Power. Venus
blades are interchangeable across the line.
Venus Embrace is a five-bladed razor with a ribbon of
moisture surrounding the blades.
Venus Breeze is a three-blade razor with shave gel bars
built into the head of the razor.
Venus Spa Breeze is essentially the same as the Breeze,
but with a white tea scent to the shave gel bars.
Venus Pro-Skin Moisture Rich, launched in January 2011
in the United States, is an updated version of the Breeze,
featuring Moisture Rich shave gel bars that are enhanced
with a triple blend of body butters.
Gillette Fusion is a five-bladed razor
released in 2006. The Fusion has five blades
on the front, and a single sixth blade on the
rear for precision trimming.
Gillette Fusion Power is a motorized version of the Fusion.
The Fusion Power is battery powered and emits "micro
pulses" that are claimed to increase razor glide.
Fusion Power Phantom The Fusion Power Phantom
(Stealth in UK) was released in February 2007. It features a
redesigned handle and a darker color scheme than the
original.
Fusion Power Phenom was released in February 2008. It
has a new blue and silver color scheme.
Fusion Pro Glide and Fusion Pro Glide Power were
launched on June 6, 2010 in North America. It claims to have
re-engineered blades with edges that are thinner than
Fusion.
Gillette products in the shaving
cream/gel/foam department-
Gillette has a range of shaving products for different types of
skins and user requirements. However, Gillette has consciously
not chosen to have shaving cream in its product line.
Gillette worldwide and Gillette India have cited the following
reasons for not launching a shaving cream and restricting itself to
only shaving gel and foam:
Technically speaking, gels offer more lubrication than that of
creams. This means that gels have more anti-friction
properties than creams. This enhances the effectiveness of
the razor’s glide on the skin.
Weight-to-weight, gels are cheaper than creams.
Gel, being a solid in a liquid, can include any additional
ingredients like moisturizer, aloe Vera, vitamin E etc.
Foams have been pre-perfected with the optimum lather
required for shaving and Gillette was already a market
leader in the foam segment. The demand for foams was on
the rise due to minimal effort required on the part of the
consumer.
Gillette Series
S.
No.
Foam Gel
1 Foam Conditioning Gel Moisturizing
2 Foam Deep Cleansing Gel Sensitive Skin
3 Foam Pure and Sensitive Gel Ultra Comfort
4 Foam Moisturizer
5 Foam Lemon
6 Foam Sensitive Skin
Product Hierarchy
Personal Grooming
Razors/BladesShaving Brushes
Gels/FoamAfter shave Preparation
Mach 3 TurboVector Plus
Sensor Excel7'0 Clock
Gillette PrestoWilkinson
Gillette seriesGillette
Duracell
Alkaline Batteries
Portable Power Oral Care
Tooth BrushesOther oral care
products
Oral-B
COMPETITOR ANALYSIS
COMPETITOR ANALYSIS CHART
S.NO.
COMPETITOR PRODUCT NAME
1 Colgate Palmolive2 Proctor & Gamble Old Spice3 Hindustan Unilever
Limited (HUL)AXE
4 Godrej Godrej Shaving Cream
5 FA FA Oceanic & Dynamic
6 Dettol Dettol Shaving Cream
7 Park Avenue Park Avenue
1. COLGATE – Palmolive Colgate-Palmolive is one of the largest companies in the FMCG sector. The Company has launch of its International Palmolive Shave Gel and Palmolive Shave Foam in the year 2000, in response to growing consumer interest in skin conditioning benefits.The Chairman of Indian Operations mentioned that the company’s strategy for Personal Care is to remain in top niches. Every year, they intended to take 3-4 initiatives. Colgate has shaving products under the brand name Palmolive shaving cream.It has three variants in the shaving cream/gel/foam category. They are shown below:
Colgate-Palmolive’s Shaving Cream/Gel/Foam:
Colgate
Palmolive
Palmolive Lime Palmolive
Moisturizer
Palmolive Deluxe
Colgate-Palmolive has three products in the shaving
cream/gel/foam segment. Palmolive shaving creams are enriched
with revitalizing sea minerals, this rich formula refreshes and
against irritation.
They are formulated with soothing Aloe-Vera; this rich foam is
mild on skin and helps guard against irritation. One variant is a
creamy formula featuring palm extract to hydrate and moisturize
skin.
This cream in a long thin tube is very easy to use. As you just put
onto your face and use your shaver and it will get all your
stubbles of your face leaving it nice and smooth.
The Price of each of these products is mentioned with
size of the pack in the table below:-
Product Weight Price (Rs.)
(gm)Palmolive Lime 70 37Palmolive Moisturizer 70 39Palmolive Deluxe Lather 70 39
2. PROCTOR & GAMBLE- Old Spice Proctor & Gamble, USA operates in India through three entities.65% subsidiary - Procter & Gamble Hygiene & Healthcare (PGHH), which is focused on Anticold (Vicks), and Feminine Hygiene (Whisper). In the shaving cream/gel/foam category it has a very strong brand in the market, Old Spice.Old Spice has products in each of the cream, gel and foam category.These three categories are shown in the form of a tree below.
Proctor & Gamble
Old Spice Foam Old Spice
Gel
Old Spice Cream
The prices of Old Spice shaving cream, gel and foam
products are mentioned in the table below:
Product Quantity (ml) Price (Rs.)Old Spice Foam 200ml 110Old Spice Gel 60ml 50Old Spice Cream 70ml 45
It can be observed from the table that even the Old Spice Cream is priced higher than the premium products of other competitive brands
PROCTOR & G AMBLE
Old Spice is one of the top brands across world in the shaving
products category. In the shaving cream market it has a good
hold over the perception of the consumers.
It is recognized by its fragrance and is seen as a macho brand.
It is has products in all the three categories (cream, gel and
Foam). Old Spice is also present in after shave market and it also
have after shave product is very dominant in the market.
It has a lot of products in the shaving products market. This also
makes the brand much stronger than its competitor.
3. HINDUSTAN UNILEVER LIMITED – HUL (AXE)Hindustan Lever Limited, which is now called as Hindustan Unilever Limited, is a subsidiary of Unilever (USA). It is the largest FMCG Company in India. It is also reputed to be the largest exporter of India.Its distribution network is very strong. It has over 2000 suppliers and associates and about 7000 redistribution stockiest.With this massive distribution network in place, HLL enjoys commanding position in many FMCG products in Indian market.
In the Shaving Cream/Gel/Foam category also HLL has two brands. Both of them are very strong brands in the Indian market.With the help of the distribution system these brands have a deeper reach to the Indian consumers. These brands are shown in the tree below:
Hindustan Lever Limited is the biggest player in the Indian FMCG
market. It has two brands in the shaving cream segment Axe and
Denim. HLL has extended its brand Axe which is a success in the
deodorant market to the shaving creams.
HINDUSTAN UNILEVER LIMITED
AXE DENIM
AXE Shaving Cream
Denim Xclusive
The Axe shaving cream has very good awareness scores among
the consumers. It comes in various fragrances, colors and its
packaging also has many variants.
Denim is another shaving cream from the house of HLL. This is
almost in the same segment as that of Axe in terms of price and
product attributes.
The pricing of shaving products by HLL for both Axe and Denim is
almost same. It is also very similar to that of Old Spice shaving
cream. But HLL does not have any product in the gel or foam
category to compete brands like Old Spice and Gillette.
Product Quantity
(gm)
Price (Rs.)
AXE Shaving Cream 70gm 45
Denim Xclusive 70gm 43
4. GODREJ
Godrej is a domestic brand of shaving cream and now it is looking to expand in the global market for hair color and shaving creams. It has two variants in the shaving cream category. They are Godrej Shaving Cream and Godrej Premium Shaving Cream. The price of these two is shown in the table below. One observation is that even the premium shaving cream from Godrej is priced quite below (44%) below the competitors products of same quantity.
Godrej is the domestic brand of shaving cream for Indian market.
Recently Godrej has invested heavily for the expansion in this
market. They have bought a shaving cream manufacturing and
marketing company in South Africa and are looking forward to
some other alliances for the presence in global market.
The shaving cream from Godrej is among the lowest priced
shaving cream in the market. It is targeting the price sensitive
customer in the Indian market. But the quality of the product is
satisfactory in spite of it’s near about half the price than its
competitors. Although, variants are few in terms of size,
fragrance and packaging, it is still in the shopping list of many
consumers.
Product Quantity (gm) Price (Rs.)
Godrej Shaving
Cream
100gm Rs. 25
Godrej Premium
Shaving Cream
70gm Rs. 25
5. FA
Fa has two shaving cream products in the market. Fa is
offering 30% extra shaving cream (21gms) with 70 gms
pack. Both of its products are priced exactly the same.
Product Quantity (gm) Price (Rs.)
FA Oceanic 70 + 21 40
FA Dynamic 70 + 21 40
Other Brands:
Other competitive brands like Dettol and Park Avenue are also
there in the market scene. The price for their shaving cream
product is mentioned below. These are not premium segment
brands and were priced accordingly.
Dettol cream which comes in 70 gms pack is currently offering
40% extra in its regular product for Rs. 37. Whereas Park Avenues
shaving cream is sold in 70gms pack for the price of Rs 36.
Brands like FA, Dettol and Park Avenue are also present in the
market. Although they do not account for a very significant
market share but then also the awareness of these brands is fair
enough to consider them as competitors.
Dettol is associated with antiseptic attributes and is quite
popular with health conscious consumer. Other brands like FA
and Park Avenue focus on the regular consumer by portraying
themselves as a sporty cool brand by associating with
adventurous lifestyles.
Financial Analysis of Gillette:
Financial Analysis- Since its entry into India market in 1984, Gillette has been
following a strategy of inorganic growth by acquiring domestic companies in oral care, battery, blades and razors and stationery business.
The company witnessed tremendous growth during the latter half of 1990s. Net sales increased from Rs 107 crores in 1997 to Rs 477 crores in 2000 representing a growth rate (CAGR) of 45 %. Similarly, CAGR for net profits over the same period was over 50%.
However, operating margin declined from 19.8% in 1997 to 14.0% in 2000. This further declined to less than 1% in the year 2001. Further, negative sales growth and increased expenses led to a net loss of Rs 28 crores in 2001. This poor financial performance forced the company to undertake a major restructuring program.
Over the next 2 years, Gillette concentrated on reducing overheads and better working capital management to increase profitability.
As a result of its restructuring program, the company reported net profit of Rs 44.82 crores in 2003. Since then, company has been growing at a steady rate which has resulted in increased valuation of the company.
Vision and Future Growth The company’s vision is to build total brand value by
innovating to deliver consumer value and customer relationship faster, better and more effectively than its competitors.
This vision statement has led to the development and introduction of various newer products especially in male grooming division and adoption of a more customer oriented approach.
The company decided to disassociate itself from non-profitable and non-strategic businesses to focus on profitable businesses. It started focusing on the grooming and oral care business and exited the battery (except Duracell) and household appliances activities.
Gillette currently, is the market leader in the male grooming division and is expanding very aggressively into female grooming business through introduction of products such as wet shaving products and hair expiation devices.
The company is also focusing on exploring ways to capture the expanding oral care segment in the near future. Oral care segment contributed approximately 13% of company’s revenues in 2006 as against only 7% a year ago.
External Forces – The external environmental factors in terms of increasing
purchasing power of the Indian consumers and a high level
of interest in personal grooming amongst Indian men and a
strong focus of the company to create awareness for
technologically advanced products have resulted in signs of
growth in the triple blade and twin blade systems. In 2004,
Gillette came up with new and improved products like Mach3
Turbo and New Vector Plus to cater to the increasing needs
of this section of the market.
Further, penetration of cable television into the smallest of
Indian towns has led to an increased awareness of latest
lifestyle trends and brands, which have become an
aspiration for many consumers. This increased awareness
coupled with the increase in disposable incomes has led to a
desire to upgrade lifestyles through owning and using better
quality brands. This increased demand has led to higher
sales growth especially in personal grooming division.
The Government's continued focus on liberalization; trade
friendly policies and improvement in infrastructure have
resulted in a steady inflow of global investments into the
Indian market which has again resulted in higher income
levels due to increased employment opportunities and
sustained economic boom.
Thus, it can be said that due to higher income elasticity of
demand, demand for personal grooming products are
expected to grow at a rate higher than the rise in income
levels of people. However, since the market is still driven
largely by price and not quality (typically in rural markets
and smaller towns), consumers might not value the potential
benefit of paying higher prices for better and safer products.
MARKETING MIX
MARKETING MIX
PRODUCT MIX
PRODUCT
PRICE
PLACE
PROMOTIONS
PACKAGING
DISTRIBUTION
Facts about Product Mix:
WIDTH OF THE EXISTING PRODUCT LINE—5 LENGTHS OF THE PRODUCT MIX—50 AVERAGE PRODUCT LINE LENGTH—10 DEPTH OF DIFFERENT LINES-
GILLETTE SHAVE GEL VARIENTSo Moisturizingo Tough breado Conditioning
AFTER SHAVE- GILLETTE SERIES------ 4 VARIENTSo Forceo Cool Iceo Cool Waveo Rush
SIZES- 50ML AND 100ML PACK
RAZORo 7O’CLOCK------- 2 Variantso 7O’CLOCK PIIo 7O’CLOCK
DEODORANTo Clear gel-------- 2 Variantso Power rusho Power storm
Product Line Appraisal:-
UP- MARKET STRETCHING - MACH 3 TURBO
DOWN MARKET STRETCHING - PRESTO
LINE FILLING - GILLETTE VECTOR
LINE PRUNING - Affra Cosmetics(door to door sales)
Product Differentiation:-
On the basis of their Forms
On the basis of their Features
Gillette Cream 7O’Clock Single BladeGillette Gel Mach2 (Double Blade Razor)Gillette Foam Mach3 (Triple Blade Razor)
Fusion (5 Blade Razor)
STYLE
PACKAGING
Additional Features
Microfins Lubricating Strip Pivoted Razor
Packing is the container in which a product is shipped, displayed, sold and/or purchased in. It can represent the brand’s category while also enable transport, storage and consumption ease.
Gillette has come up with packing which fulfill all the essentials of packing the material, color, size and shape has been designed well. Its packing is very eye catching. Gillette created similar packaging for both the Mach3Turbo and Gillette Series brands, which enabled the creative team to develop POP designs that visually linked the products while maintaining their individuality.
The front of the Gillette razor pack is transparent allowing the customer display of the product. Also for men’s razor the colors that have been chosen are dark and solid but for women the colors have been kept soft and feminine. For women also the packaging has been designed well and different women razors like its Venus model has shown.
The cartridges are packed in similar blue box and come in sets of 4, 8 and 12 cartridges. The only difference in the packing of cartridge is that it is packed in hard multilayer corrugated box and the inner pack is a plastic casing which protects the blades.
With shaving cream/gel perceived as a commodity by the majority in India, the packaging, Point of purchase plat an important role in the consumer’s mind while deciding which product to buy.
The Gillette Series has been designed and
packaged with a futuristic theme to communicate
to the consumer the subtle message that only
Gillette offers you the most advanced in shaving
products. Gillette was the first in India to
introduce gels in tubes. The shaving tube for GEL
is very different in design. It is glossy and can
rest on its cap unlike the competitor’s tubes. The
FOAM Series comes in metallic cylinders.
Note:-
Focus on aesthetics
Designed with a futuristic theme
Introduced gels in tubes
Metallic cylinders for foams
Rectangular cylinders for deodorants
USE OF COLOUR Logo in black to symbolize sophistication Blue for refreshing and cool look Red for highlighting the variant White to signify clean look
LABELLINGTwo unique features are-
Information about the ingredients Instructions for usage in local languages
PRICE
Gillette has 10 product variants of shaving gel/foam for the Indian market. All the 10 products are in the premium category ranging from Rs 53 to Rs 210 for the minimum and maximum SKUs.
Gillette has priced its shaving gel and foams well above the industry average. For instance, Gillette foam priced at Rs. 210 costs 60% more than OLD SPICE foam though Old Spice has the one of the best brand perceptions (and was the best in our survey).
The pricing strategy suggests that Gillette is leveraging its customer loyalty (i.e. the consumers who are brand loyal to Gillette razors).
The following table shows the Gillette Series price for all the 10 product variants. We shall see the competitor’s prices in detail in the competitor analysis.
Pricing Techniques:
Perceived value pricing. Ex.- Gillette Mach 3
Penetrative pricing strategy for vector plus
Bundling-Shaving creams/gels along with razors
Foams bundled with a Gillette sensor excel usually
33% extra on many variants
Pricing of Foam Variants-
Foam Variants Quantity(ml) Price(Rs.)Conditioning 250 210
Deep Cleansing 250 210
Pure & Sensitive 250 210Moisturizing 250 210
Sensitive Skin 250 210Lemon 200 120
Pricing of Gel Variants-
Gel Variants Quantity(ml) Price(Rs.)Moisturizing 60+20 53
Sensitive Skin 60+20 53Sensitive Skin 60+20 53
Pricing of Razors Variants-
Razor Variants PriceVector Plus Speed (4
Blades)Rs. 44
7O’ Clock Rs. 317O’ Clock PII Rs. 75Mach 3 Turbo Rs. 199Sensor Excel
(Women)Rs. 190
Satin Care Rs. 35Gillette Presto (5
Blades)Rs. 75
PLACE (Distribution)
The distribution network of Gillette is very robust. They have
P&G‟s distribution network in addition to Gillette India’s existing
one. The distribution network is a combination of own network
and that of a franchisee.
As of now, Gillette India has the same distributors in the 20 cities
that P&G operates with. The distribution network follows a hub
and spoke model. The hubs are the 20 cities. The spokes are the
various Tier 2 and Tier 3 cities and towns around the major hub.
These cities are managed by the exclusive distributors in those
cities. Every city has only one franchisee distributor. These tier 2
and 3 cities (spokes) thus serve as a feeder market to the hubs.
Each franchisee distributor has his own set of employees working
for him. The distributor also manages his own fleet costs to supply
to the retailers. There are no wholesalers.
Gillette’s own network in India reaches 1 lakh outlets in 3600
towns and Now Using additional P&G distribution channel. They
are also using Hub and spoke approach in which they have 20
hub cities and spokes are Tier 2 and Tier 3 cities. Spokes are
simple, and new ones can be created easily.
Gillette uses Hub and Spoke method of distribution. 20 hub cities
and spokes are Tier 2 and Tier 3 cities have been covered in India.
Also, the distribution channel of P&G is being used.
In this example Nagpur is the hub and we have P & G depot also
from where Gillette perform its distribution network. The
advantage of this is that the complicated operations, such as
package sorting and accounting, can be carried out at the hub,
rather than at every node, which control the overall cost of
operation of Gillette Company.
Indore Dadra
Aurangabad
Pune
Panaji
NAGPUR (P & G Depo)HUB
Gondia
Akola
Amravati
Chandrapur
MUMBAI (HUB)
DISTRIBUTION NETWORK
Distributor
Area Sales Manager
Sales Representatives
Fleet Drivers
The sales representatives go with the drivers to the various
Retailers under their geographic span and take orders every
week. The credit period offered is one week. So, for every week
the order is taken and supplied, the amounts due for the previous
week would be collected. The two sales managers have split the
city into two parts for their span of control. They are in charge of
the big retailers, super markets etc.
Advantages of the Channel Distribution of GILLETTE
The small number of routes generally leads to more efficient
use of transportation resources.
Complicated operations, such as package sorting and
accounting, can be carried out at the hub, rather than at
every node.
Spokes are simple, and new ones can be created easily.
Customers may find the network more intuitive. Scheduling
is convenient for them since there are few routes, with
frequent service.
PROMOTIONGillette has made extensive promotion campaign for its razors in the Indian market and the world market.
Roger Federer, Tiger Woods, David Beckham and Thierry Henry are a few of Gillette’s global ambassadors called Gillette Champions. But for India Gillette does not have any brand ambassador as of yet other than Arjun Rampal an Indian Bollywood Actor, though Irfan Pathan has done a couple of ads for Sensor Excel.
But, for the shaving gel/foam there has not been much of advertisements. In fact, there is only one ad for Gillette Series Shaving Gel shown not too prominently. For the shaving gel/products, Gillette has co-advertised with its razors.
Key Features:
Strong and sustained advertisement all throughout.
Gillette brand has high recognition rate.
Massive influence, recall and salience—reminder advertising.
Successful MACH3 launch campaigns.
Focus on brand values, innovation and cutting edge
technology.
AIM- to educate consumer on product advancements and
improved shaving performance.
Promotional Activities:
Tie up with Rediff-on-the-Net e-commerce to market its
product.
Tie up with ZAPAK for The India Gaming Championship 2009.
Endorsed by eminent sports personalities.
Used sports as a major promotional vehicle.
Soccer Saturday sponsorship launched MACH 3, Turbo and
M3 Power successfully
AIDA MODEL
Attention – By Advertisements
Interest – By Features
Desire – Admiration by Opposite Sex
Action – By Purchasing
Gillette Company Advertisements
BRANDING, PROMOTIONS &
ADVERTISEMENTS
BRANDINGThere are pressures in good times and bad but the
fundamental business principles stay the same – Innovate
and Delight the Consumer with the best propositions.
Gillette has always strived to help men across the country
“look, feel and be their best” and that continues to be the
equity that Gillette holds in consumers’ minds today.
But the game-changing was an innovative campaign
launched in October last year.
Till then, MACH3’s sales in India had seen almost a negligible
growth. Years of conventional product advertising had
established a good brand image for Gillette, but that wasn’t
enough to get Indian men to switch to its products.
WPP’s Mediacom – launched the “India votes: To shave or
not” campaign, which ended up sparking a national debate
on the merits of the clean-shaven look Vs the hairy look.
A Nielson-commissioned survey intended to determine the
country’s attitude toward shaving. Online and live polls held
in places such as gyms, malls, offices and movie theatre fed
the fire while giving men a chance to use the product.
Were clean-shaven men more successful?
Did the nation prefer clean-shaven celebrities?
And the big one: did women prefer clean-shaven men?
Mediacom tied up with NDTV and for 8 weeks, the channel
ran celebrity interviews, panel discussions and news stories
around the topic. Similar tie ups were done with radio
stations.
The logic : Gillette wanted to generate a talking point on a
subject that’s not necessarily top-of-mind.
RESULTS OF BRANDING CAMPAIGN 12.2 million Indians voted for a clean shave.
It has been very innovative, business building programme
that has had impact on brand equity and trials.
The survey proved conclusively and publicly that women
preferred clean shaven men.
The look emerged as the preferred style and was associated
with attributes like confidence, success and being
trustworthy.
EFFECTS OF BRANDING CAMPAIGN Sharing this observation with the men of India created
dramatic change in the brand’s fortunes.
Sales went up by 38% immediately, awareness doubled.
Sales grew 12% higher than the overall grooming industry
growth.
Trials increased by 400%.
Net profit rose 31% in the first quarter of this financial year.
Gillette’s market share increased by 35% at one goes.
MACH3 registered its highest ever growth in the past 5 years
(helping Gillette achieve overall market leadership in the
category)
PROMOTIONS & ADVERTISEMENTS
GILLETTE SHAVE SUTRA
Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo
Sensitive’s conduct Gillette Shave Sutra – The World’s
Largest Shaving Lesson.
150 couples come together to break the world-record for the
Largest Shaving Lesson EVER!!
Gillette Shave Sutra demonstrates how with the comfort of
Mach 3 Turbo Sensitive shaving becomes so effortless that
even your partner can shave you.
GILLETTE VENUS ESCALATORAn oversized female leg with the Goal of saying the smooth
Benefit of Gillette Venus.
GILLETTE HOLDINGS
PRINT ADVERTISEMENTS
The Best A Man Can Get’’ Campaign 2004
Strong, product - focused campaign for MACH 3 Turbo and other
male shaving products. Successfully promoted campaign &
increased 15% sales for the year.
Bend it with Beckham” Campaign April, May 2005
Largest consumer promotion campaign for Gillette across
the Middle East, Africa and Europe.
Achieved impressive business results.
20% increase in volume sales through April and May 2005
across the three premiums Gillette products.
Gillette Razor Zamboni Ad” Campaign
Gillette razors attached to Zamboni Ice Resurfacer machines
seeming the razors were giving a Smoother shave to the ice.
The Moment” Campaign (2009-2011)
It’s a Global Brand marketing campaign.
Modernized version of “The Best A Man Can Get,” campaign.
Featured with Sports stars namely Tiger Woods, Roger
Federer and Derek Jeter in Ads & Promotions.
BRAND EQUITYThe value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability.
Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity.
The basis of brand equity lies in the relationship that develops between a consumer and the company selling the products or services under the brand name. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on his or her perception of the brand and its value.
One situation when brand equity is important is when a company wants to expand its product line. If the brand's equity is positive, the company can increase the likelihood that customers will buy its new product by associating the new product with an existing, successful brand.
Brand Equity can be build by using:-
Television Sponsored
Programs:
Drafted 3 Gillette
Soccer Saturday.
Fast Cars and
Superstars
Brand elements 4 Ps strategies Leveraging secondary associations
BRAND ELEMENTSA brand element is defined as visually or verbally distinct information that identifies and differentiates a product or service. Examples of common brand elements include names, logos, symbols, characters, slogans, and packaging. Marketers often choose brand elements to build brand equity--to enhance consumers' brand awareness or facilitate their formation of strong, favorable, and unique brand association.
Before coming up with the product they collected some facts through research:
1. There are about 30,000 beard hairs on the face of the average.
2. The ideal shave angle (razor blade meeting the face) is28-32 degrees.
3. Hair on the neck grows parallel to the skin. 42% of men report that they prefer to be clean shaven.
4. The average shave lasts 3½ minutes.5. The average man spends 10-15 hours a year shaving.6. The average man begins to shave regularly when he begins
to work regularly.
7. Men between the ages of 18 and 24 shave an average of four times a week.
8. Men over the age of 35 shave an average of six times a week.
Brand Name & URLs
The Brand name is the name used to recognize the brand and to distinguish it from the competitors’ brand.
For example:Gillette Mach 3 uses the name MACH3 for its razor. Mach means the ratio of the speed of an object to the speed of sound in the surrounding medium.For example, an aircraft moving twice as fast as the speed of sound is said to be travelling at Mach 2.So MACH3 denotes a shaving speed equivalent to three times the speed of sound in the surrounding medium i.e. air. The name is attributable of speedy close shave.
Brand URL URL or Uniform Resource Locator refers to the web address
of the brands web page. More and more brands are moving on to the web to increase customer touch points and to increase brand awareness.
Gillette MACH3 has a website www.gillettechampions.com which uses some famous international athletes such as Roger Federer (Tennis), Tiger Woods (Golf), Thierry Henry (Football) and Rahul Dravid (Cricketer) (for South Asian countries only) on the website to endorse its products.
Gillette also has its own website as www.gillette.com which lists all its products including Gillette Mach 3. The webpage is so designed that the visitor can zoom and see the various product features of MACH3 razor.
Slogan
For the most effective branding results, the slogan selected should be a short sentence which is memorable or ‘catchy’ and, again, easily remembered by customers. This will then combine with the name to strengthen the branding structures working for the product. In order to generate ideas for slogans to lead the branding, focus on the potential customer should be maintained.
GILLETTE SLOGAN: THE BEST A MAN CAN EVER GET
Now going by the slogan we can make out two meanings from it, either Gillette is the best shaver a man can get or with the use of Gillette products a man is “the best he can get”. But the more obvious and intended meaning is thought to be the former that Gillette razors with their superior and innovative technology and instant ability to recognize consumer needs are able to offer the best shave a man can get out of all the available options to him.
Going through its features what makes it admirable, efficient and popular among the general public are installations like sharp blades, easy to clean, good handle design and not to mention the number of blades-three to be precise in the mach 3 version of its razors, not seen in any other brand.
The slogan is what catches the attention of most potential buyers of razors as it gives a strong meaning and identification to the buyers that what the product offers is nothing but the best that is not offered by any of the other competitors.
As said above it is the slogan which plays a very important role in catching the attention and signifying what the company is intending to offer to its buyers and what the buyers can derive out of the product, and in the same lines Gillette’s slogan of ‘the best a man can ever get’ gives out a strong signal to the buyers that what they are going in for is the best shave they can get and thus shapes the buyers perceptions about the product as well.
This again is well accompanied by its extensive features as listed above which re-affirm their belief.
At the same time being such a strong statement by declaring itself the best among others it acts as a catchy phrase that consumers will always remember, as buyers being rational would always want to go for the best they can get to satisfy their need at competitive prices, and Gillette’s slogan thus will always remain in their mind. Whenever they think about shaving and shaving blades they think of the best being Gillette.
Logo & symbolLogo is a term used to refer to a graphic symbol or emblem commonly employed by commercial enterprises, organizations and even individuals to aid and promote instant public recognition. At the level of mass communication or simply in the high street a company's logo is today often synonymous with its trademark or brand.
For Example:
Gillette Mach 3’s logo has the words Gillette Mach 3 printed on it with three horizontal stripes present on the left hand side. The word Gillette is written in the same fashion as that present in the parent brand’s logo. In order to provide continuity and to avoid confusion Gillette uses the strategy of using the parent brand’s logo as a part of the logo of all its sub brands.
The three stripes which are sharp and somewhat faded at one end signify the speed, accuracy and comfort which the triple blade action formula present in Mach 3 provides.
The three horizontal stripes which are blue in color and the letter ‘M’ in Mach 3 this has a tinge of blue on a white base hint at the freshness that a ‘Gillette Mach 3 shave’ gives to its users.
Therefore it can be said that Gillette Mach 3’s logo somewhat fulfills the requirements of all the parameters that we discussed above and has been a constant driving force in its brand building process
Packaging Packing is the container in which a product is shipped,
displayed, sold and/or purchased in. It can represent the brand’s category while also enable transport, storage and consumption ease.
Gillette has come up with packing which fulfill all the essentials of packing the material, color, size and shape has been designed well. Its packing is very eye catching.
Gillette created similar packaging for both the Mach3Turbo and Gillette Series brands, which enabled the creative team to develop POP designs that visually linked the products while maintaining their individuality.
The front of the Gillette razor pack is transparent allowing the customer display of the product. Also for men’s razor the colors that have been chosen are dark and solid but for women the colors have been kept soft and feminine. For women also the packaging has been designed well and different women razors like its Venus model has shown.
The cartridges are packed in similar blue box and come in sets of 4, 8 and 12 cartridges. The only difference in the packing of cartridge is that it is packed in hard multilayer corrugated box and the inner pack is a plastic casing which protects the blades.
Bundling
More and more companies are bundling their products with other accessories to use the product. Bundling is the process of packing and selling more than one product with related features or use together.
For Example:The MACH3 comes with a shave gel combo in which the customer can save up to Rs.100.
Leveraging secondary associations:
Celebrity spokesperson:Gillette roped in famous athletes for its MACH3 advertisements which included Roger Federer (Tennis), Tiger Woods (Golf), Thierry Henry (Football) and Rahul Dravid (Cricketer)(for South Asian countries only) the company named them as Gillette champions and showed them shaving and winning in their advertisements. Gillette also roped in football star David Beckham for MACH3 Power. The advertisement was aired the most during sporting events such as FIFA World Cup, Barclays Premiere League, US Open, Wimbledon, Cricket matches T20 world cup etc. Another publicity stunt Gillette roped in Bollywood celebrities like Milind Soman and some famous models and also cricket ace MS Dhoni to shave with Gillette MACH3 and tell how confident, good, and smooth it feels.
Note:-
Consistency is the key to successfully building and managing brand equity. Having a long-term outlook and projecting a consistent image of your brand to the customer will maximize the results of building brand equity.
Customer Based Brand Equity Model
Brand Salience:
Brand Salience measures awareness of the brand, how often and how easily the brand is evoked under various situations or circumstances. It is the same as brand identity i.e. who are you?
The Gillette brand is associated with best quality razors. For many people, razor is Gillette and no other brand will do. The core value of quality supports the brand. Consumers know that they can trust a razor that carries Gillette branding. The brand has been successful in establishing the link, in the mind of the consumer, that razor equals Gillette.
Being an international brand, Gillette mach3 has gained immense awareness worldwide. It has penetrated the market so well that the males are able to clearly recognize and identify as a razor very different from the rest.
The product has been on top of the mind of consumers since a long time now. Moreover, its usage does not need the user to be extra careful because of its flexible quality. Brand awareness among men is quite pervasive as every second man is using Gillette mach3.
Brand Performance:
Over the years it has survived in a highly competitive market with electronic razors and manual blade clippers and has developed its competitive advantage. It is successful in communicating the customers that it is still the ultimate in shaving experience. The consumers can acknowledge the durability of the product. The attractiveness of packaging alone can be instrumental in stimulating a purchase especially impulse buyers.
The brand is the first choice of the consumers. Its various products like shaving gel, shaving foam, shaving cream, after shave lotions, razors and blades has performed extremely good in
the market as far as satisfaction is concerned and therefore has been completely accepted by the end consumers.
Brand Imagery:
It depends on the extrinsic properties of the product including the ways in which the brand attempts to meet customer’s psychological or social needs.
The intangible association to Gillette includes experiences. The product could be bought from supermarket or from department store or specialty store through impulse buying. It has developed a recognized image in the minds of consumers. Being an expensive product, people see it as a premium and a reliable brand.
Brand Judgment:
These are customer’s personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and imagery associations.
Brand Quality:
Consumers trust the brand because there is certain level of quality attached to it.
Brand credibility:
Gillette being such a trusted name since 1895 enjoys a sort of monopoly in the market. The brand has provided such an immense satisfaction to users that all the products under this umbrella brand have gained acceptability by men.
Brand consideration: the Gillette razors have completely eradicated electric shavers from the market. People find it
convenient to use this because of its flexibility property and a cool effect after shave. Moreover, the blade lasts for more than a month which is one of the reasons of its wide acceptance by the male section.
Brand superiority:
The quality which the product carries with itself is superiority. The premium price and the ease of usage define its brand superiority.
Brand feeling:
These are customers‟ special responses and reactions to the brand. The feelings that are evoked by the marketing program or by other means. People feel that it is a compatible, smooth, non-burning or itching, flexible and an easy to use device.
Brand resonance:
It describes the nature of this relationship and the extent to which customers feel that they are “in sync” with the brand. It is characterized in terms of intensity, or the depth of psychological bond that customers have with the brand, also the level of activity engendered by this loyalty (repeat purchase rates and extent to which customers seek out brand information).
SEGMENTATION, TARGETING & POSITIONING
Target Marketing
Gillette Products and especially Mach3 market segment has proved to be extremely attractive and profitable for the company. The segment size is increasing at a rapid pace in India and America. Furthermore, the segment is made more attractive because of the fact that there are no strong and popular competitors of Mach 3. This has provided Mach 3 with a lot of market power.
Substitute products like shaving machines are not considered as suitable enough to replace Mach 3. The high price of Mach 3 proves that customers do not have enough power to reject the product and that the company is in a far stronger position than its suppliers and its customers.
The company’s objective that Mach 3 and other products offered by Gillette should be considered by the customers as the best shaving product has been complimented by the investment of a lot of money in the product in terms of increased promotion and advertising.
Select the Target Segmentation
In the shaving cream/foam/gel market there exist different
categories of customers who have different needs and are willing
to pay different amount for the product that meets their demand.
Introduction of shaving cream would help Gillette identify the
needs of the customers and take advantage of the segment which
has not yet been targeted by the company.
Price sensitivity, importance of attributes, point of purchase decision makers and customers influenced by additional features are the factors on which we will segment the shaving cream market.
Segment ONE- is most prices sensitive and values additional features the least. As Gillette is a premium brand which focuses
on differentiating its products from the competitors and upgrading the customer in the value chain, targeting this segment will not be a strategically appropriate decision.
Segment TWO- more influenced by attributes of the products and is not a price sensitive segment. Gillette through its shaving gel and foam series is currently catering to this segment.
Segment THREE- is concerned about the attributes, additional features as well as price. Gillette through its shaving cream can enter this segment easily.
Gillette marketing strategy was differentiated marketing from the beginning. Gillette wanted to differentiate its products from other competitors shaving products and to target several market segments. Some segments purchased Mach 3 because of the income factor. Some did because of their preferences and particular lifestyles.
Gillette converted Mach 3 into Venus Power just in order to cater to the segment of women users. So, Gillette designed separate offers for different market segments.
Positioning:
Gillette has an excellent real positioning in the men’s
grooming market and Gillette shaving cream can leverage
this positioning in the target market.
Gillette positioned its various products in the market place
with a proper strategic decisions and market survey. Like,
Mach 3 position in the market place is extremely strong and
secure.
Consumers definitely consider it a superior shaving product
compared to other products. One can definitely say that it
occupies a unique position in the minds of those consumers
who want to have an extremely close and smooth shave.
If we analyze the position of Mach 3 on a positioning map,
we will see that due to its higher price, it will be situated on
the upper portion of the map. As far as luxury and
performance are concerned, Mach 3 is more inclined towards
performance due to its three blades and other product
features.
The value proposition of Mach 3 is definitely “more for
more”. Extra product features have prompted Gillette to
charge a higher price. Mach 3’s positioning statement should
be: “To those people who want to get up in the morning with
a desire to succeed in this world, Mach 3 is a three blade
shaving product with extra features that allows you an
extremely smooth and close shave which lasts for the whole
day”.
As a matter of fact, the target market has been identified as
the customers who are concerned about the attributes of the
shaving cream but are not willing to shift from the current
price band to a higher price band.
The Competitors have been the most strategic situation for
Gillette. The Gillette shaving cream will be competing with
brands like Old Spice and Denim. Old Spice and Denim are
its closest competitors.
Gillette lags behind all its competitors with respect to the
price offered. With respect to additional features, all
companies have below satisfaction level of performance
which implies that variants introduced in the market for
shaving cream/gel/foam are not able to satisfy the demand
of the consumers.
Psychological Positioning:
Gillette shaving cream will primarily alter the attributes
importance in the target segment by increasing the importance of
attributes like brand name, foam formation etc and decreasing
the importance of price. This will be consistent with its strategy of
moving the customers up the value chain.
Value Proposition of Gillette:
Gaining consumers' share of mind is an art form. Getting them to try a new product and offering a "reason to believe" has never been better orchestrated than with Gillette Products.
The first and most important step is creating a clear value proposition for the consumer.
For Example:-
For the Mach 3, the value proposition had to be compelling, succinct and easily understood by a vast consumer base around the world. Like everything else in the development process, it was a painstaking endeavor. Indeed, the value statement took two full years, countless meetings and innumerable focus groups to write. The value had to be there for a wide cross section of shavers, from the serious system user to the disposables user.
Gillette also promised to be the best grooming brand for the consumers. It offers value for money and attracts the mass as a whole.
Brand Ambassadors
CORPORATE SOCIAL RESPONSIBILITY
P&G launches SHIKSHA'08
You can now help educate more Underprivileged children via
simple brand choices P&G commits Rs. 1 crores to its partner
CRY, which will be allocated to projects focused on enabling the
child's right to education.
Project Shiksha is part of P&G's global philanthropy program
P&G Live, Learn and Thrive that focuses on the development
of children in need across the globe, with Education of
Children via Shiksha being the priority in India.
Till Date, Shiksha has set 67,000 children across 435
communities on the path to the right to education with a
donation of over Rs.4 crores.
P&G announces Shiksha’ school education program of
underprivileged children in India. After helping lead over
67,000 children on the path of education over the last 4
years, Procter & Gamble in partnership with Child Rights and
You is back again with SHIKSHA 2008.
India has the world’s largest number of children out of
school. Every child in India has the right to free, quality
education, but still approximately one out of every two
children, (close to 200 million) do not go to school.
Even as the economy continues to grow at a fast pace,
statistics indicate that there are many challenges like
poverty that will need to be taken in stride if this growth is to
be sustained. In an attempt to make a difference is when
Procter & Gamble in partnership with Child Rights and You,
launched Shiksha, a National Consumer Movement now
running in its 4th year.
Shiksha, P&G’s Corporate Social Responsibility Program
makes it easy for all consumers to help educate
underprivileged children by simply buying any of P&G’s large
packs of Tide, Ariel, Pantene, Olay, H&S, Rejoice, Vicks
VapoRub, Whisper, Gillette Mach 3 Turbo, Gillette Series,
Oral B, Duracell or Pampers in the months of April, May &
June ‘08.
With a motto of ‘Padhega India, Badhega India’ Shiksha
believes that the secret to a Brighter India lies in the quality
education of our children. In this endeavour with us to bring
Shiksha to life is key NGO partner CRY.
With the help of CRY, the Shiksha projects include ones that
work with the State Education Departments to re-look at
existing education policies; create awareness to build more
schools with better infrastructure and basic amenities like
water, electricity, health; enroll more children into formal
schools and promotion of retention in schools; and build all-
round development of children.
Informing about Shiksha, Shantanu Khosla, Managing
Director, and P &G India said, "As the economy grows at 8-
10% levels, we need to ensure that we lay down a strong
foundation for this growth to continue by investing in our
future generation.
In that context, education becomes a fundamental issue that
needs to be addressed. P&G globally is committed to the
cause of development of children in need via its corporate
cause P&G Live, Learn, Thrive and Shiksha is our response to
the situation in India.
Shiksha is unique because it empowers the consumer to
make a difference simply by choosing to buy quality
products from P&G. Shiksha is not just an initiative of one
corporate and an NGO but a passion we as an organization
strongly believe in. ‘Padhega India’ Tabhi tho ‘Badhega
India’."
Irwin Fernandes, Director Western Region, Child Rights and
You said, "The financial support P&G, its media partners and
consumers provide to CRY’s work is invaluable. Even more
critical, however, is the awareness of child rights that
Shiksha helps create and the avenues it provides for each of
us to bring about change with social justice.
India will only achieve her true potential, when we make
child rights our topmost national priority. To do this we have
to go beyond schemes and programs to address the real
obstacles to growth – caste, class, gender and governance.
P&G’s choice to go beyond tokenism, to partner CRY and
take the challenging route is truly inspiring. I urge every
Indian citizen to stand up for child rights.
Shiksha Supporter and Award Winning Actress Kajol said,
"Shiksha, education, is one of the most critical factors
deciding the choices that life offers to a child. However,
millions of children in this country today are being deprived
of this very important opportunity because quality education
is only possible when every child has adequate nutrition,
proper healthcare, can live in safe surroundings, is free to
study, rest and play, and doesn’t have to work for a living.
I support project Shiksha in its endeavors to make a
difference said Kajol Shiksha Supporter and Veteran Actress
Sharmila Tagore said, "I believe education plays a
fundamental role in shaping a citizen and leads the country
to greater heights. In that sense, education can be the
foundation for an India we seek today where every child
explores his or her full potential and has the right to do so.
Therefore, it is heartening to know that people like you
helped support the education of 67000 children last year. I
urge people across India to participate in Shiksha and make
a tangible difference to the lives of the little ones."
Shiksha supported projects in 2006 – 2007. 1. JAAG (Mumbai,
Ratnagiri, and Raigad, Maharashtra), 2.Lokhit Samajik Vikas
Sanstha (Osmanabad, Maharashta), 3. The Association of
People with Disability (Kolar, Karnataka), 4.Adhar (Bolangir,
Orissa), 5.Mandra LC (Purulia, WB), 6. Paridhi (Bihar), 7.
Judav (Madhupur, Jharkhand), 8.Jan Shikshan Kendra (UP), 9.
Jan Mitra Nyas (Varanasi, UP), 10.Hanuman Van Vikas
(Udaipur, Rajasthan), 11.Doaba Vikas Evam Utthan Samiti
(Kaushambi, U.P.
Gillette Children's Specialty Healthcare
Is an independent, not-for-profit hospital located in St. Paul,
Minnesota, with clinics in Duluth, Burnsville, Maple Grove,
Minnetonka, and services for adult patients at our St.Paul - Phalen
Clinic Gillette is internationally renowned for a level of pediatric
expertise that distinguishes us from many health care
organizations.
Gillette Children's Specialty Healthcare
St. Paul Campus
St. Paul - Phalen Clinic
Brainerd Lakes Clinic
Burnsville Clinic
Duluth Clinic
Maple Grove Clinic
SWOT ANALYSIS
“STRENGTHS”
1. Strong Brand Equity Gillette’s portfolio contains well established brands such as Gillette and Braun, Oral-B line and Duracell. It eases the introduction of new products, as consumers are already well
acquainted with the names and more receptive to promises of improved user experiences. The strength and quality image of these brands allows the company to charge higher prices and achieve high margins.
2. Market Leadership The company’s product are well known with a reputation of quality are also market leader in their respective segment.
3. Well Diversified portfolio Gillette has a well-diversified portfolio in terms of product diversification and market diversification. Diversification of this nature helps the company avoid the risk of overdependence on any one source for its revenue stream.
Other Strengths are as follows: Creativity and R&D investment Product availability worldwide People Reliance on Quality of Product Strong marketing and advertising Strong brand loyalty Strong Brand Image Global Presence Aggressive Advertising Quality & Innovation
“WEAKNESSES”
1. Profitability highly dependent on core business
Gillette’s profitability is highly reliant on the performance of
its razors and blades business. A substantial portion of its
revenues come from this sector. Any downturn in the sector
or in Gillette’s competitive position within it could have a
serious negative effect on the company.
2. Over-reliance on a single customer
Wal-Mart Stores is Gillette’s major customer. With a large
part of its revenues originating from a single costumer, the
company is at risk of adversely affecting its business,
operating results and financial condition if its strategic
relationship with Wal-Mart Stores is terminated for any
reason.
Other Weaknesses are as follows:
Highly dependent on core business
Expensive brand maintenance
Heavy Dependence on Street Retail Outlets
Gillette has multiple blade and razor systems but their
cartridges are not interchangeable with their other
models
Long Development Cycles
Relatively Static Market Growth
“OPPORTUNITIES”
1. New product launches
Gillette is known for constantly introducing new products in
the market with better technology and performance. This
new product launches will help the company to gain
competitive advantage over its competitors.
2. Price increases in premium shaving segments
Gillette has been increasing the price of its razors and blades
at an average rate of around 4% per year over the last ten
years. This price increase will help the company to
accumulate more profits from the present level of sales.
3. Growth potential for battery business in China
The Chinese battery market is a large and fast-growing
market. Gillette has acquired a majority interest in the Fujian
Nanping Nanfu Battery Company. This has resulted to
significantly improve the performance of the company’s
overall battery business and will have its impact on the
future performance of the company.
Other Opportunities are as follows:
Use of e-commerce
Increased Grooming, changes in societal attitudes and
consumer brand preference
Increasing buying Power
Demand for high quality products
Still an infant industry in India with huge scope for
growth in future
Demographic Changes
Changing Societal Attitudes
New Production Technology
“THREATS”
1. Imitations / disposables are a threat to the Mach3 offeringGillette’s ability to sustain a price premium and earn an attractive return on its extensive investment three-blade platform is threatened by the numerous imitators of the Mach3/Mach3 Turbo franchise, including disposables and private label systems, and even including Gillette’s own three-blade disposable. This numerous imitations are threat to the company in the long term as they going to reduce the sales of the original products.
2. Pressure on pricing power
Gillette’s pricing power is being further eroded by channel migration and increasing consumer resistance to paying significantly higher prices for innovation. Pricing power is key to revenue growth in a mature category especially when Gillette’s strategy has historically been to drive revenue growth per consumer and not volume growth.
3. Competitive Environment
Gillette faces intense competition in most markets. Its products compete with widely advertised, well-known, branded products, as well as private label products, which typically are sold at lower prices. The company’s survival depends upon its ability to adopt itself in this kind of competitive environment.
Other Threats are as follows:-
o Growth in number of substitutes
o Electric shaving technology
o Economic downturn
o Cloning of Successful brands
o Increasing Buyer Power
o (Inventory De-stocking)
o Own Label Fits
Porter’s 5 Forces Model of Gillette
Potential Entrants
Barrier to entry
Customer Royalty
Industry Competitors
Strong Image Brand Loyalty Innovations R & D
Buyer
Retailers Power Increasing
Suppliers
Global Economies of scale keep suppliers
Substitutes
Electric Razor – Gillette
Future challenges - Gillette
Introduce a product which would be designed
specifically for Indian consumer and satisfy aspiration of youths.
To match the increased demand patterns in the
country.
Launching of innovative products in regular and short
intervals.
First and foremost, shaving cream accounts for roughly
80% of the market and Gillette has a very weak presence in the cream segment. It’s only cream product “7‟o Clock Shaving cream” has been a big flop.
Gillette’s‟ products are descending the customer value
hierarchy from that of a potential product towards an expected product. Competitors like Denim, Axe are moving
Substitutes
Electric Razor – Gillette
up the hierarchy. So, Gillette will find it tough to charge the premium.
It is also highly likely that Gillette may not fully absorb
the consumers who upgrade from shaving cream to gel or foam. Hence, Gillette’s market share might not grow as good as their competitor HLL and Old Spice.
Gillette’s major challenge lies in entering the mass
market through a shaving cream the way it successfully did with razors.
Gillette Future Strategies High Branding/Quality - Premium Price Develop New Market Segments & Niches through R&D Maintain/Promote Strong Brand Loyalty Tailoring Demographic Targeting (E.g. US vs. Europe) Reduction in Product Unit Costs Grow Razor Systems Segment Strategic Alliances (Suppliers and Distributors) Shedding Non-Core Businesses (E.g. Paper mate)
RECOMMENDATIONS & SUGGESTIONS
Use of a Character Gillette has used character/spokesperson to build brand awareness and create brand equity. A character would be more fitting as it could be designed in alignment with the brand’s meaning an also be easily transferable through future brand growth.Thus we can conclude that use of character could have been a contributing factor in Gillette’s success.
Increased use URL Gillette has not used its URL or SMS postings effectively. Most of them have been developed by bloggers only to share their views.
Market Penetration Gillette Mach 3 has been particularly produced for higher income consumers. Thus, we see that income segmentation has been the main factor when Gillette decided to segment the market. So customer sees mach 3 as a premium product, so its penetration is limited to high class group only.
PLAYING WITH THE PLC Gillette has the widest product range and the deepest product line in the men’s grooming market. This is a double edged sword because of the variety Gillette can offer and the cannibalization that can occur.Gillette, with its 9 existing product variants and the new shaving cream, has to see that it can extend the product life cycle and the individual stages of each of the 10 products. For example, the regular foam and Gillette 7‟o clock regular razor are on the maturity/decline stage in the metropolitan cities. Without much effort, these products can be promoted aggressively in neighboring countries like Bangladesh, SriLanka and states like Orissa, Bihar and the North East and can have revitalization and an extended maturity phase. Having so many product variants would be an unbeatable advantage in upgrading the consumer throughout his lifetime and also making him brand loyal in the process
CONTINUE WITH UPGRADATION
Gillette has been very successful in its strategy of upgrading the consumer in the razor segment. Gillette has made sure that it makes its consumers move up the product chain by introducing new, technologically superior products and phasing their PLC very well.
But sadly, this approach is missing in the shaving gel/foam segment. Though there are 9 variants, there has been no effort made to communicate to the consumer of the superior quality and attributes.
Conclusion Strong brands provide value and have a variety of benefits. To customers, brands provide direction, they provide
reassurance. Brands reduce risks and they provide a way to self-express.
To marketers, brands provide a competitive advantage. They provide the means and the way of differentiation.
Strong brands are based on a relevant differentiated position, without that, you cannot build a strong brand. A variety of associations are linked to a strong brand.
Diversifying capital, investment, products and other resources to maintain and expand position as market leader.
Strategically positioned as leader, and regularly reorganising its structures to respond quickly to changes in business and competitive trends.
Developing and maintaining a high profile for its brand names through marketing.
Continuing to maximise efficiency in production and distribution, rather than focusing on direct retailing.
Likely to remain as the market leader of grooming sector products for the foreseeable future.
REFERENCES
Internet source. Reports – Previous reports. Case studies. Literature Reviews. BOOKS, NEWSPAPERS and WEBSITES.
BOOKS REFERED Marketing Management – Kotler Strategic Brand Management – Keven Lane Keller
WEBSITES USED www.google.co.in www.investopedia.com www.studymode.com www.slideshare.com www.wikipedia.com www.economictimes.com www.pg.com www.gillette.com