GILLETTE

“GILLETTE IS THE GLOBAL LEADER IN MALE TOILETRIES

PRODUCTS”Data Monitor Research, Oct. 2007

JANAK DEORA

ANIRBAN DAS

RAHUL GARG

VIKASH VERMA

MOHIT KR. SHARMA

SHARAD BHARADWAJ

THE GILLETTE COMPANY

108 YEARS 1901-2008•1901 Founded by King C Gillette with William Nickerson in Boston.

•1902 1st Product – Double edged, T shape disposable razors.

•1914 Gillette brokers deal with US Army (3.5 Mn razors, 36 Mn blades)

•1950 Spends $6 Million for TV rights to Baseball World series for 6 years.

•1973 Net Sales exceed $1Billion & in 1980 it exceeds $2 Billion.

•2001 Gillette has 61 Facilities in 25 Countries, and employs 40,000 people

•In 2005 Gillette merged with Procter & Gamble, forming one of theworld’s largest consumer goods companies.

•Gillette is now on 16th position as a brand in the world with a $19,579 million turnover.

•Today, Gillette operates 32 manufacturing facilities in

15 countries and employs more than 30,000 people.

NORTHAMERICA

SOUTHAMERICA

UK

EUROPE

AFRICA

ASIA

AUSTRALIA

GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES

GILLETTE PRODUCT RANGE

GLOBAL STRATEGY

Corporate Objective global focus on consumer products global competitive advantage in quality, value added

personal care/use products

Global Market competing in the triad markets (Europe, Japan, North

and South America) industry concentration (SWOT Analysis) global market leadership in male and female

grooming products

THE GILLETTE STRATEGY

Global resources organised and deployed to achieve market leadership in all their products

to maintain and increase existing market share in male and female grooming products

Corporate Strategy aggressive research and advertising new product developments (invest in technology

and product innovation) focus on core competencies maximise e-commerce opportunities build strong product portfolio

GILLETTE MARKET STRATEGY

Strategic Market Objectives Achieve a well integrated programme of marketing mix

elements. To enter the direct sell market via the Internet.

Target Market Analysis early entry into the UK market by the FDI mode presence in the UK as a strategy for European

Common Market high industry concentration ratio (SWOT Analysis) market leadership in men’s shaving products

GILLETTE'S PROFIT BY PRODUCT

Blade and Razor

profits up 11% in 2007, due mainly to sales of Mach 3.

Gillette Profits by Product

0

500

1000

1500

2000

2500

y2007 y2006 y2005

Year

Pro

fit

$Mil

lio

ns

Braun Products

Oral-B Products

Duracell Products

Toiletries

Blades & Razors

COMPANY SWOT ANALYSIS

Strengths

Threats

Weaknesses

Opportunities

Market LeaderStrong Brand ImageGlobal PresenceAggressive AdvertisingQuality & InnovationPortfolio Range (Mach 5 etc)

Long Development CyclesRelatively Static Market GrowthHeavy Dependence on High Street Retail OutletsExpensive Brand Maintenance

Demographic ChangesChanging Societal AttitudesConsumer Brand PreferenceDemand for High Qualityproducts

New CompetitorsCloning of Successful brandsIncreasing Buyer Power(Inventory De-stocking)Growth in SubstitutesOwn Label FitsEconomic Downturn

BLADES & RAZORS SEGMENT

DisposableRazors

ShavingSystems

ReplacementBlades

Blades &Razors

ElectricShavers

Shaving Products

Pre-Shave Post-Shave Deodorants

Toiletries

GroomingMale & Female

WET SHAVING PRODUCTS

•Mach3 Turbo

•Mach 3

•Sensor & Sensor Excel

•Atra

•Trac II

•Custom Plus

•Good News

•SensorExcel for Women

•Sensor for Women

•Agility

•Gillette for Women Venus

MARKET POSITIONING

Price

Quality

WilkinsonGillette

BiC

Own Labels

BLADES & RAZORS STRATEGY

• Innovation through Research & Development

• Premium Brand - Premium Price

• Build Global Product Branding

• Build Strong Brand Loyalty

• Greater Efficiency at Lower Cost.

• Maintain Superior Growth in Market Share

• Build Shaving Systems Sub-Segment

• Invest in technology and product innovation

FUTURE GILLETTE 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. Papermate)

•Diversifying capital, investment, products & other resources to maintain & expand position as market leader.

•Strategically positioned as leader, & regularly reorganising its structures to respond quickly to changes in business & competitive trends.

•Developing & maintaining a high profile for its brand names through marketing.

•Continuing to maximise efficiency in production & distribution.

•To remain as the market leader of Grooming sector products for the foreseeable future.

Conclusion

GILLETTE STILL THE GLOBAL LEADER IN MALE

TOILETRIES PRODUCTS

So in deed

“The best a Man can get”