{More than 1 billion men
across the world start their day with Gillette
The company established by King Camp Gillette on 28 September 1901 in Boston.
Initially it was American Safety Razor Company. The invention of Razor was patented in 1904. 1905 Develops new markets by opening London Offices. 1914 Gillette brokers deal with US Army (3.5 Million razors, 36
Million blades) In 1952, its name changed to The Gillette Company. In India, co. established on 9th February 1984, in Rajasthan as Indian
Shaving Products Limited and was jointly promoted by House of Poddar Enterprises and Gillette co.
Now it is called as Gillette India Ltd. Merged with Duracell (India) Pvt. Ltd. and Wilkinson Sword India
Ltd.
All About Gillette
1973 Net Sales exceed $1Billion. 1980 Net Sales exceed $2 Billion. Sold off to P&G in 2005 for $57 billion Launched various innovative products to capture the Indian
Audience Market leader in premium shaving care segment Good reputation for delivering high quality, value added products Still in the infant stage with great opportunities ahead. Saw a 16%
growth in 2008 Awarded as the 13th most global brand by Bloomberg
Businessweak
References:http://www.moneycontrol.com/company-facts/gilletteindia/history/GI22http://images.businessweek.com/ss/09/09/0917_global_brands/89.htm
Gillette India Limited (GIL) is one of India's well-known FMCG Companies.
The world's largest personal care and household products company.
First in INDIA to introduce gel in tubes. Running since 111 years (1901-2012). Global Leader in premium shaving care segment Over 1 Billion men start their day with Gillette. Manufacturing operations located in 23 countries. Distribution in 200+ countries.
BRAND HIGHLIGHTS
Gillette India Limited (GIL) has 3 corebusinesses:
Grooming
Portable Power
Oral Care
Core Businesses
NORTHAMERICA
SOUTHAMERICA
UKEUROPE
AFRICA
ASIA
AUSTRALIA
GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES
STRENGTHS
Creativity and R&D investmentProduct availability worldwidePeople Reliance on Quality of ProductStrong marketing and advertisingStrong brand loyaltyMarket Leader
WEAKNESS Highly dependent on core business Expensive brand maintenanceHeavy Dependence on Street Retail OutletsGillette has multiple blade and razor systems but their cartridges are not interchangeable with their other modelsOPPORTUNITIES
Use of e-commerceIncreased Grooming, changes in societal attitudes and consumer brand preferenceNew product launchesIncreasing buying PowerDemand for high quality productsStill an infant industry in India with huge scope for growth in future
THREATS
New CompetitorsGrowth in number of substitutesElectric shaving technologyEconomic downturnCloning of successful brands
SWOT ANALYSI
S
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 global market leadership in male and
female grooming products
GLOBAL 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 strategic diversification e g mergers &
acquisitions new product developments (invest in
technology and product innovation) focus on core competencies maximise e-commerce opportunities build strong product portfolio
THE GILLETTE STRATEGY
GILLETTE PRODUCTS
Launching innovative and customised products Gillette has created a new market
for the power battery toothbrush through Oral-B (the oral care subsidiary of Gillette India). It also introduced Mach3Turbo, a triple-blade shaving system in India. Gillette India has launched customised products specially designed for Indian consumers. It introduced “Vector Plus”, which is a twin blade system with push clean anti-clogging function in the mid-price segment.
GILLETTE’S STRATEGY IN INDIA
Gillette’s sales and distribution network is wide, enabling consumers all over the country to buy its products.
Gillette has localised its distribution system and made it specific to the Indian market.
Gillette has targeted the Indian market on a shop-by-shop basis as against the European and US market where there are only few major retailers.
Localisation of distribution
system and wide distribution network
Gillette restructured its business in India in 2003.
Strategic restructuring: Focused on grooming and oral care business while exiting battery and household appliances business.
Financial restructuring: Focused on improving the margins, cost reduction and improving asset utilisation.
The restructuring undertaken by Gillette paid off with increasing profits.
Restructuring business to drive growth
Gillette is tapping the large Indian consumer base to establish a strong presence in the country. The market for shaving blades in India is the largest in the world.
The market for oral care (toothbrushes) is the
second largest in the world, while that of batteries is the third largest in the world (all in volume terms).
Apart from this the increasing consumer-spending capacity and the increase in retail activity are also some factors which attract Gillette to expand its business in India.
Leveraging India’s large market
http://www.ibef.org/download/GilletteIndia.pdf
Gillette Presto, a product designed to upgrade consumers who still use double-edge blades, with a product priced atRs18, and with refills priced at Rs5 which lasts up to 5 shaves. With the company pursuing a volume-led growth strategy, its advertising and promotion expenditure can be expected to continue growing at high levels. And, even as sales growth may continue to surprise on the upside, profit can be expected to lag for some time to come.
Price Strategy
In a bid to increase share and growth, Gillette introduced the Mach3 in November 2011, priced at Rs125 or 60% lower than the Mach3 Turbo. This product is targeted at greater conversions from the doubled-edged segment, which accounts for 62% and 86% of the razors and blades market, in value and volume terms, respectively. And nearly half of this market comprises users who get their shaves done in a salon. Gillette is attempting to convert this segment by giving them a salon-quality shave at an affordable price.
http://www.livemint.com/2010/11/28211336/Gillette-India-shortterm-pai.html
Strong distribution strategies played a prominent role in the robust growth, as a result of which Gillette brand has managed to tap both the “premium” and the “value-for-money” consumers – Sharat Verma, Marketing manager of Gillette India
The lower-value products, followed the company’s realisation that while “new and improved” is still good, “lower price” works better in these tough times
MARKETING
BRANDINGUmbrella Branding
{
PROMOTIONS AND ADVERTISEMENTS
Gillette’s ‘SHAVE INDIA MOVEMENT’
Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo Sensitive’s conduct Gillette Shave Sutra – The World’s Largest Shaving Lesson
• 150 couples come together to break the world-record for the Largest Shaving Lesson EVER!!
• Gillette Shave Sutra demonstrates how with the comfort of Mach 3 Turbo Sensitive shaving becomes so effortless that even your partner can shave you.
GILLETTE ‘SHAVE SUTRA’
Tied up with Rediff-on-the-Net e-commerce to market its product
Tied up with ZAPAK for The India Gaming Championship 2009
Uses sports as a major promotional vehicle
Uses social networking sites like Facebook to promote it’s products and carry out different surveys
BRAND AMBASSADORS
GILLETTE IN THE MINDS OF
THE CONSUMERS
HOW OFTEN DO YOU SHAVE?Frequency
Alternate daysEvery 3-4 daysTwice a weekOnce a weekOnce in 2 weeks
TRADITIONAL RAZOR
Gillette Dynamite Topaz 7'o clock05
101520253035404550
GilletteDynamiteTopaz7'o clock
WHICH DISPOSABLE RAZOR DO YOU PREFER? Preference
Gillette GuardSuper MaxPrestoDynamite
WHICH REPLACEMENT CARTRIDGES DO YOU USE?
Mach 3 Mach 3 plus Vector plus Fusion0
5
10
15
20
25
DO YOU USE AN ELECTRIC SHAVER?
YESNO
WHICH SHAVING CREAM/SHAVING FOAM/SHAVING GEL DO YOU USE?
Nivea Old Spice Gillette Park Avenue
0%
10%
20%
30%
40%
50%
60%
PREFERENCE ON THE BASIS OF?
AvailibilityPriceEasy To UseSafetyQualityQuick
IF THE FIRST PREFERENCE IS NOT AVAILABLE,WHAT WOULD YOU BUY?
Some Other BrandSame Brand
IF THE PRICE OF YOUR PREFERRED BRAND INCREASES, WHAT WOULD YOU DO?
Shift To Other Brand
Still Buy Same0
102030405060708090
GILLETTE IN THE MINDS OF THE SELLERS
55%
11%
15%
24%
Sales
GilletteAxeSupermaxothers
DISTRIBUTION OF SALES
Fusion Mach 3 turbo
Presto0
1
2
3
4
5
6
SALES
SALES GRAPH OF GILLETTE PRODUCTS
PRICE AND QUALITY OF THE PRODUCTSAlmost all the sellers surveyed feel that the Gillette products are premium in quality.
The company offers products for middle as well as higher income groups.
Gillette constantly strives to provide convenience and better quality to its consumers
The products are priced as per its quality. Though a little expensive, the price is worth the quality
Attractive advertisements and sponsoring events one of the key reasons for higher sales.
STOCK OF THE PRODUCTS IN THE SHOPS
The products are easily available.
Efficient follow-up by the distributors in the retail shops.
Very rarely there occurs a shortage.
Gillette recently adopted D.C system for its modern trade. This has lead to better availability in the super markets.
COMPLAINTS AND SUGGESSTIONSHardly any complaints from the end-users.
Minimal instances of the products procured from the distributors being defective. However, defects occurring during transportation can be neglected.
The company must allow credit duration of a week.
Better margins expected from the company. Shouldn’t merely be a ‘A SOCIAL SERVICE’ act by the retailers. Competitors offer 10-15% extra margin than Gillette.
Blades more expensive than razors. Reduction in blade prices will help considerably in increasing the market share.
Tarin PoddarMeera Panchal
Ummulkiram PardawalaSmik Hindocha
Niket Shah
Truly, Gillette is the best a man
can get!
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