Rural C5 (3)

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    Group C5

    RURAL MARKETING

    (Gillette Guard)

    Sr. No. Roll No Name

    1 2012070 Ankit Jha

    2 2012072 Aparna Vohra

    3 2012078 Himanshu Jain

    4 2012097 Rachit Jain

    5 2012085 Kunal Parmar

    6 2012108 Shubham Agnihotri

    7 2012117 Sunny Kohli

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    The target market bottom pf the pyramid represents 70% of the c

    population.

    Hundred year old Double Edge razor technology was still being used in 80% o

    households.

    Gillette Guard was therefore developed keeping in mind the safety and affo

    needs of the Indian Consumers

    The Guard would serve as an entry-level product that could attract new custom

    serve as a mechanism for some of those customers to eventually trade-up to

    margin products, like the Mach3, or purchase compliment products like shaving

    The strategy would double Gillette Indiassales revenue in three years.

    Why P&G needed Gillette Gaurd

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    Focus on Safety:

    Single-blade system lined with a safety comb designed to prevent nicks and cu

    Flexible pivoting razor head helps better manoeuvre the curves of the face a

    and tackle the hair under the chindifficult areas for doubleedge for users

    safely.

    Easy to manoeuvre handle with a light weight, ribbed design offers with a e

    one-handed control to prevent nicks and cuts.

    Features of Gillette Gaurd

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    In 2007 P&G sent a multi functional team to rural areas to get a first hand ex

    of how rural India lived . And shaved.

    . These men usually shaved while sitting on the floor, often in low-light con

    with a cup of water and handheld mirror.

    This, in conjunction with a cheap blade, easily led to nicks and cuts.

    Intermittent access to water also meant that men did not shave everyd

    needed a blade that could easily shave longer hair and be used with a

    amount of water.

    Research Methodology by P&G

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    Gillette wanted to achieve a multiplier effect

    per dollar of marketing spend on the Guard.This multiplier effect would rely on word-of-

    mouth.

    Large number of kiranas dispersed

    throughout India would play an important

    role. The small shops were the dominantretail outlet in rural areas and often played a

    large role in influencing purchasing decisions.

    Availability

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    Gillett's own network in India reaches around 1.5 lakh plus outlets in 3600 to

    addition to P&Gs existing distribution channel. Hub & Spoke Model with 20 hub cities and spokes are tier 2 and tier 3 cities.

    Every city has only one franchisee distributor. These tier 2 and tier 3(spokes) cities

    serve as feeder network.

    Nagpur(Hub)

    Gondia

    Chandrapur

    Hinganghat

    Akola

    Yeotmal

    Amravati

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    The model enables Guard to maximize its reach which ensure its availability t

    masses for which the product was created. Packaging, sorting, accounting and POS promotions decisions are all done at t

    level.

    The product pricing is stringent and hence to maintain margins transportatio

    have to be controlled which is ensured by the small number of roots.

    Frequency of service is high to make sure that product is available all the time

    target markets All scheduling activities are done at hub level.

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    In 2010, the most popular double edge blade in India was the Super-Max bran

    cost at most US$0.03 per blade.

    The One-Rupee-Shave

    The Guards blade cartridge was good for five shaves with each replacemen

    costing about US$0.08a price equivalent to a sachet of shampoo or a small

    toothpaste.

    Through a deep understanding of the rural segment, Gillette designed, dev

    manufactured and priced the Gillette Guard at US$0.33 per razor system and

    per blade cartridge.

    Affordability

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    In 2010, the most popular double edge blade in India was the Super-Max bran

    cost at most US$0.03 per blade.

    The One-Rupee-Shave

    The Guards blade cartridge was good for five shaves with each replacemen

    costing about US$0.08a price equivalent to a sachet of shampoo or a small

    toothpaste.

    Through a deep understanding of the rural segment, Gillette designed, dev

    manufactured and priced the Gillette Guard at US$0.33 per razor system and

    per blade cartridge.

    Affordability

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    Affordability Analysis

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    Awareness

    Gillette adopted promotional and advertising campaigns unique to the Indian

    and its consumers Packaging makes the low-price an eye-catcher, and shows a handsome young

    man easily shaving himself. This, together with large Gillette branding, make a

    compelling case

    Within 3 months after it launched, Gillette Guard became the best-selling raz

    India. Within the first 8 months of launch, 11 million men had tried Gillette G

    Gillette Shave India movement http://www.youtube.com/watch?v=uffvu0aztAA - Ad

    http://www.youtube.com/watch?v=pppAF4AtrGM- Demo

    http://www.youtube.com/watch?v=HkL97eYUGcQ- Movie

    http://www.youtube.com/watch?v=uffvu0aztAAhttp://www.youtube.com/watch?v=pppAF4AtrGMhttp://www.youtube.com/watch?v=HkL97eYUGcQhttp://www.youtube.com/watch?v=HkL97eYUGcQhttp://www.youtube.com/watch?v=pppAF4AtrGMhttp://www.youtube.com/watch?v=uffvu0aztAA
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    But in 2002, its predecessor the Vector

    was a massive flop after intense focus

    grouping with MIT students rather than

    India residents

    To successfully sell products overseas,

    particularly in developing markets,

    companies must tweak them so they're

    relevant to the people who live there

    Field research by top executives.That,for me, was a big 'a-ha,' said Alberto

    Carvalho, vice president, global Gillette, a

    unit of P&G. I had never seen people

    shaving like that.

    The journey..

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    What is Acceptability?

    A series of pre defined standards related to the performance of an ind

    product that enables someone to easily determine the capability to pe

    its function within an acceptable range

    Customer should think that they can buy the product by putting an ext

    amount on that It should deliver a great solution to the customer, as perceived by cust

    The customer should be happy by using the product and feel comfort,

    should not be any hesitation to go for it again and again

    Acceptability

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    Indian men shave less frequently

    Length of time to shave

    Condition of shaving

    Priorities focussed on not being cut and less on a clean shave

    Westernisation of culture, Facial hair no longer identity symb

    Cultural differences

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    Reasons for success :

    Go to the source,

    Delight dont dilute,

    Match the model to the market

    Preferred 6 to 1 over standard double edged razor

    74% of the men feel safer and have less cuts using the guard

    Hold 49.1% of the market share, 12% increase from mach 3

    Success of the guard

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    Thank you

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