Group 2Anirban Palit 13P192

Apratim Maitra 13P197Praveen Kumar

13P223Rajesh Nair 13P227

Smriti Agarwal 13P237

Gillette India Ltd.

(Indian Shaving Products Ltd )

ISPL: The Company

Gillette• 70% Global market Share• Annual sales turnover: $3

billion

ISPL• 24% equity by Gillete • 24% by House of Poddars• Balance equity from public offer• Production Started in 1994 at Bhiwadi’s plant (set up

with an investment of over Rs. 20 crores)

House of Poddars• Invested 5 crores in ISPL• 24% equity in ISPL

Shaving market• Actual Market Size : 2.4 billion blades (in 1992)

• Value of Market: Rs. 250 crores

• U.S Market: 2.2 billion blades

• Value of U.S Market: $ 800 million

• Expected Indian shaving male population: 15 to 20 crores

• Indian Market was dominated by carbon steel technology

• Stainless steel blade was considered better than lower end carbon steel technology

• Twin blade technology was new in market; twin blade segment was approximately 2%

CompetitionHouse of Malhotras

• Undisputed market leaders

• 80% to 90% market share

• Host of best selling brands: topaz, supermax

• Seven manufacturing facilities

• 47% market in terms of value in twin blade segment

• Distribution network: consist of large wholesaler to semi-wholesaler and retailers

• Tactics to maintain leadership: Dumping stocks, imitation product launch

Wiltech India Ltd• Promoted by R P Goenka with

technical collabration with Wilkinson sword Ltd

• Capacity of 120 million blades• Twin blade segment: Wilman 1

and Wilman 2• 50% market share in terms of

value• Despite financial growth,

company accumulated losses of over 2 crores

ISPL• Launched blades under rand

name: 7 O’ Clock• Product ranges from 7 O’Clock

super stainless and 7 O’Clock super platinum

• Priced its product about 50% to 80% over prices of wiltech’s brand

Distribution ChannelTwo Options

1) Build its own distribution Channel 2)Tie up with distribution Companies

ISPL choose second option

• Collaborated with lipton India with a termination clause as per which either could discontinue the arrangement by giving six month notice to other party

• Lipton was getting 5% commission for selling ISPL product

• Stockist got a margin of 7% on ISPL products , which was better than 5% margin offered by lipton products

Recommendation

• Without any significant sales data, it would be difficult to define exact problem

• But, using distributor model of a tea company might not be useful in long run

• They can ask sales team to do BTL activities to enhance demand in market

Thank You