Gillette New

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GILLETTE GILLETTE The Razor-Wars Continue

Transcript of Gillette New

Page 1: Gillette New

GILLETTEGILLETTEThe Razor-Wars Continue

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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

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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

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“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

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$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

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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

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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

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Expansion of existing market. Continuous innovation. Research & development Well integrated programme of

marketing mix elements. Market leadership in men’s shaving

products.

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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!!!!

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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.

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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

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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

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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

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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

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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

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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

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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.

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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.

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Innovation should be time specific Concentrate on promotion of

complementary products Try to cater mass market

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