gillette new
TRANSCRIPT
GILLETTEGILLETTEThe Razor-Wars Continue
ABOUT THE COMPANY› History› Vision Statement› Brands, Products, People› Product Range
Product Innovation At Gillette ? Wet Shaving Market Towards Saturation ? Gillette Vs Schick The Battle & It’s Bad Effects Gillette’s marketing program/strategies Should Gillette be worried about Schick ? Situational Analysis SWOT Analysis Key Success Factor Problem Identification Suggestion
Founded by King C. Gillette in 1901 as a safety razor manufacturer at Boston, Massachusetts
1st patented safety razor in 1904 Entered the India Market in 1984 in a JV with HOPE Merged with Duracell (India) Pvt. Ltd. and Wilkinson Sword India Ltd. Sold off to P&G in 2005 Famous for its shaving and personal care products Also makes brands like Oral-B, Braun, Duracell batteries, Luxor and
Parker pens
“To build TOTAL BRAND VALUE by innovation to deliver consumer value and customer leadership faster, better, and more completely than our competitor”
Fundamental Principles:› Organizational Excellence
Superior performance at every level
› Core Values Achievement, Integrity, Collaboration
$9 Billion in Sales (2003) Multinational Corporation Gillette - Recognized Brand Worldwide 32 Manufacturing Centers
› 15 Countries› 200+ Markets
Approximately 29,000 employees worldwide 4 primary Business Units
› Grooming Blades & Razors Personal Care
› Batteries› Oral Care› Appliances
Innovative: 47% of Sales from Products less than 5 years old
SHAVING
MEN
PERSONAL CARE
DURACELLBATTERIE
S
ORAL BBRAUN
APPLIANCES
BRAUN KITCHEN
APPLIANCES
BRAUN HAIR BRAUN HAIR CARE EPILATIONCARE EPILATION
BARUN STEAM BARUN STEAM IRONSIRONS
PERSONALPERSONALDIOGONASTICDIOGONASTIC
MANUALTOOTHBRUSH
ESADVANTAGEADVANTAGEINDICATORINDICATORCROSS ACTIONCROSS ACTIONSTAGESSTAGES
POWERTOOTHBRUSH
ES3D EXCEL3D EXCEL3 D PULSATING3 D PULSATINGCROSS ACTION CROSS ACTION KIDSKIDS
FLOSS AND INTERDENTAL
SATIN flossSATIN flossULTRAFLOSSULTRAFLOSSESSENTIAL FLOSSESSENTIAL FLOSSSUPER FLOSSSUPER FLOSSORTHODENTICORTHODENTIC
TOOTHPASTE AND
MOUTH RINSE
GENARAL USE BATTERIES
COPPER TOPCOPPER TOPULTRAULTRAPRISMATICPRISMATIC
SPECIALITY BATTERIES
PHOTOPHOTOHEARING AIDHEARING AIDCAMCORDERCAMCORDERWATCHWATCHELECTRONICSELECTRONICSHOME MEDICALHOME MEDICAL
SHAVING GELS AND FOAMS
GILLETTE SERISEGILLETTE SERISESATIN CARESATIN CARE
ANTIPERSPIRANTANTIPERSPIRANTSS
AND AND DEODRANTSDEODRANTS
GILLETTE SERISEGILLETTE SERISERIGHT GUARDRIGHT GUARDSOFT & DRISOFT & DRIDRY IDEADRY IDEA
MACH 3MACH 3MACH 3 MACH 3 TOURBOTOURBOSENSORSENSORSENSOR SENSOR EXCELEXCEL
WOMEN
VENUSVENUSSENSORSENSORDAISYDAISY
The Sensor (1990) Sensor Excel For Men(1993) & For Women (1996)
The Mach3M3 Power Nitro
Mach3 Turbo
Gillette For Women VenusVenus Vibrance
Venus Divine Venus Disposable
Fusion
Expansion of existing market. Continuous innovation. Research & development Well integrated programme of
marketing mix elements. Market leadership in men’s shaving
products.
1) The Gillette Sensor: twin blades with spring-loaded action
2) The Gillette Sensor Excel: twin blades with micro-fins
3) The Gillette Mach3: THREE blades!
(Schick's falling behind, so they unveil the...)
4) The Schick XTreme3: three FLEXIBLE blades!
5) The Gillette Mach3 Turbo: three blades, TEN micro-fins, improved lubrication!
(Schick fights back with the...)
6) Quattro: FOUR blades!
(Gillette retaliates with the...)
7) the Gillette MP3 Power: battery-powered three blades!
8) the Schick Quattro Power: four battery-powered blades!
(Gillette brings.)
9) the Gillette Fusion: freaking Five blades!!!!
(Before Schick can beat it to the punch...)
10) the Gillette Fusion Power: battery-powered five blades!!!!
CauseCause Emergence of Schick as a potential threat to the
market share of Gillette. Schick’s share has risen to 17%. Gillette’s monopoly is affected.
Law SuitsLaw Suits Gillette lawsuit of patent infringement against Schick. Schick sued Gillette for misleading advertisement.
Bad effectsBad effects Monetary loss in legal issues. Revenue loss in nonessential innovation. Loss of brand image due to unethical practices. Trade off between existing product. Problem in positioning the product.
Gillette’s brand ambassador feature leading sports personality.
Design branded entertainment programs Procter’s marketing will be its entrance into
sports. Playing with the product life cycle. Launch Gillette shaving cream. P&G’s sales and marketing knowledge can
be utilized by Gillette. Customer interaction center-marketing &
product development purpose
Converting Consumers from single & twin blades users to more profitable sensor, sensor excel and Mach 3 lines
Continued geographic expansion Gillette’s aggressive focus was the
launch of Fusion razor
Gillette’s vision is to build total brand value by innovation The distribution network of Gillette is very robust Gillette has made extensive promotion campaign (Gillette
Champions & Gillette Stadium) Gillette has co-advertised shaving gels and foams along
with its razors Gillette has the widest product range and the deepest
product line Lessons learned during challenging times form guidelines
for its decisions and actions Gillette’s strong marketing commitment to gain market
share
Macro-environment Economy
Legal & Political Issues Technological Advancements
Socio-cultural Trends
Market Domestic vs. International market
Market Size Buying behavior Trend
Competition
Product
SWOT
DemographicGeographic
Behavioral Description
Men’s Product
Schick Gillette BIC
Quattro Power ($11.99)
Quattro Titanium ($8.99)
Quattro Power ($8.99)
4 for $10.498 for $19.99
Fusion Power ($11.99)
Fusion($9.99)
M3 Power Nitro ($11.99)
4 for $14.298 for $28.99
4 for $10.99
4 for $9.298 for $16.99
4 for $12.998 for $23.99
Mach3 Turbo ($8.99)
Mach3 ($8.29)
Comfort 3 $4.29 for 4
Comfort Twin Sensitive $ 5.29 for 10
Sensitive $3.29 for 12
Women’s Product
Schick Gillette BIC
Quattro for Women ($8.99)
Intuition Plus ($8.99)
Intuition ($8.49)
4 for $9.298 for $16.99
Venus Vibrance ($8.29)
Venus Divine($8.99)
Venus Disposable ($7.99) for 3
4 for $8.498 for $19.99
3 for $9.49
3 for $8.296 for $14.99
4 for $9.498 for $17.99
Comfort Twin Sensitive $ 5.29 for 10
Superior Product benefitSuperior Product benefit The ability to meet consumer needs. The ability to meet consumer needs. Dedication and commitment to product design and Dedication and commitment to product design and
refinement leading to significant improvements over refinement leading to significant improvements over currently available productscurrently available products
Strong financial support for all areas including marketing.Strong financial support for all areas including marketing. Ability to take risksAbility to take risks Commitment to comprehensive promotional strategy.Commitment to comprehensive promotional strategy.
Aggressively moving towards diversification by acquiring unprofitable companies.
Unable to leverage its core strengths to become dominate in each of its markets.
Complacent towards their core business and their primary business sectors.
Maximum revenue comes from sale of razor rather then cartridge.
Innovation should be time specific Concentrate on promotion of
complementary products Try to cater mass market