Gillette Brand Management

8/11/2019 Gillette Brand Management

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Section A,

Camille LeDhruv BhaNiranjana Saswath SSrinithi SSundeep A

Umakant S


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Gillette Trivia1895: King C. Gillette invented safety razor

1903: Launched after 8 years

1903 :51 razor & 168 blades

1917-1918: Wide consumer acceptance during World War I

1980s: Gillette primarily focused on global markets and strategies

1986: 800 products in more than 200 countries

1989: $770 Mn US domestic razor and blade


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1932: BlueBlade

1938: ThinBlade

1946: FirstBlade

Dispenser

1959: SuperBlue Blade

1971: Trac II

1976: GoodNews!

1977:Atra

1980: Swivel1984:Good

News! Pivot

1985:MicroTrac

1986:Contour

Plus

1988: Trac IIplus

198New

198

Product Innovation History


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Case Facts

61.90%

16.20%

9.30% 12.60%

Market Share - US

Gillette

Schick

BIC

Others

41.50%

45.80%

12.70%

Product Category

Disposable

System

Double Edge

23 23.227

30.632.7

14.3 15.417.4 20

21.1

1981 1982 1983 1984 1985

Disposables Market

All Disposables Gillett


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Wet Shave Brands- An EvaluationAttributes Trac II Atra GoodNews

Universal image ofbrand

High High High

Ability tomanufacture

Relatively easyRelatively easy

Difficult

Product dissimilarity No No No

Perceived difficulty inmanufacturing

Yes Yes No

ConsumersInvolvement in theextension

High High Low

EVALUATION Symbolic Symbolic Functional


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Points of Concern

Focus on system razors VS Disposable razors

Additionally segmenting disposable razors

Advertising

Expenditure

Concept

Consumer profiling

Age

Usage

Masculine image of shaving

Logo

Retail packaging and display

Women consumers


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Competitor Analysis

Leader in the injection shaving market : controls over 80% of it

Late entrant in the disposable razors market Narrow-headed disposable razor used to enter market in 1988 (Slim Twin

67% of revenues are overseas

Schick

Keeps introducing products enhancements and razor improvements

Pioneered & focused in disposable razor segment

Main product is the shaver for sensitive skin

Philosophy ofMaximum service, minimum price Only single blade disposable razors

Bic

Entered with Super- Sword Edge, blade with a steel coating

Introduced several innovations but were short-lived

Ultra Glide to compete with Gillettes Atra Plus, priced at 5 to 8% lower

Competed with Gillette in advertising by using comparative adsWilkinson Sword


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Customer Segmentation

DEMOGRAPHICS

Permanent razors &cartridge

Disposable razors Injector & douedged

Women

Men

Young(Under 30 yr)

Men aged 30+

PREFERENCES

Price Sensitive

Quality Sensitive


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Possible Alternatives1.Give-up Strategy

Transition to disposable razors

Segmentation of disposable razorsbased on performance

4. Product Innovation isystem razors and blade

category Product innovation and modifica

provide convenience and performto all consumer segments

All-in-one handle

2.Price segmentation insystem blade category

Product innovation in permanentsegment to come up with productsat various price points to cater todisposable price sensitiveconsumers

3. Price reduction in Sysrazors and blades categ

Price discounts on existing syrazors and blades


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Alternative 1 AnalysisProduct1. Disposable and system razors

2. Gradual increase in disposable sharePriceAccording to features provided: e.g.lubricating strips/movable heads etc.

Place1. Continue to use the existingdistribution channel(Super market,

retail stores etc.)2. Focus on improving retaildistribution system

Promotion1. Focus on advertising the attributeslike low price, convenience to promotethe use of disposable blades2. Advertise the additional attributes to

justify their price

Pros

1. Growing disposable bladesmarket (Might approach 100%market given current trends)

2. Retain market leader position

1. Lower mar2. Possibilitypermanencategory

3. Increased profits due

Our Decision: REJE


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2. Gradual reduction in disposableshare

PriceSystem razors at various price pointsbased on features provided

Place1. Continue to use the existing

distribution channel(Super market,retail stores etc.)2. Focus on improving retaildistribution system

Promotion1. Focus on different advertising fordifferent price point of permanent

razors

Pros

1. Will attract consumers withspecific needs to a product thatis tailored to their requirements

2. May convert the disposable razorusers to the system razors oflower price

1. May causeusers to swproduct

2. Lesser focurazors: migshare in th

3. Less consooffering

Our Decision: REJE


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PriceReduction in price of system razors

Place1. Continue to use the existingdistribution channel(Super market,

retail stores etc.)2. Focus on improving retaildistribution system

Promotion1. Focus on advertising the low priceavailability of system razors, whereperformance and quality is moreaffordable

Pros

1. May incentivize disposable usersto shift to a better quality razorfor a smaller price increase


2. May lead tcontinuingrazors andless, henceprofits in

cannibalis

Our Decision: REJE


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Alternative 4 AnalysisProduct1. Disposable and system razors2. Innovation to increase convenienceof system razors (e.g. Universal handlefor all Gillette blades)

PriceRelatively cheaper handle price, bladesslightly lower than disposables

Place

1. Continue to use the existingdistribution channel(Super market,retail stores etc.)2. Focus on improving retaildistribution system

PromotionGive considerable number of blades forfree to make the consumers habituated

to the system razors

Pros

1. Higher margins: Betterprofitability2. Higher Operating efficiency:

Economies of scale3. Incentives to the consumers to

switch to more profitable systemrazors

4. Brand strengthening


2. Difficult topromotion

Our Decision:ACCE


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Implementation Plan

Stage 1New product development Focus R&D on developing astandardized razor handle

Reinvigorate logo and packagingto focus on the fact that the

handle is reusableCustomization can be includedwith the variety of blades that fit

this handleStart weaning off advertising fordisposable, and increase budget

for system razors

Stage 2Roll out new handle withsupporting promotions

Ads (print, TV, POS)highlighting convenience of new

system razorsEmphasize convenience of newhandle and the pack of free

blades with purchase

Partner with university storesetc. to make the youth use

Gillette system razors

Sta

Reduce focr

Higher maincentives to

to focus msyst


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THANK YOU

&

HAVE A NICE SHA

Gillette Brand Management

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