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Marketing Strategy - Gillette

Marketing Strategy - Gillette

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Published by VikramJethwani
Markteting strategy, customer segmentation FMCG, Brand communications
Markteting strategy, customer segmentation FMCG, Brand communications

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Published by: VikramJethwani on Jan 23, 2010
Copyright:Attribution Non-commercial

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01/14/2013

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Case 2. Strategy Analysis for Gillette
 
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Vikram Jethwani and Arjun S. BhatiStrategic Marketing
vkram.jethwani@gmail.com
Gillette and the Men's Wet-Shaving Market
 
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Gillette and the Men's Wet-Shaving Market– A Case Study
 The history of shaving is traced back to 7,000 yrs ago in Egypt
Copper Razors & bronze blades, crescent shaped knife blades, meat cleavers inprevalence
Shaving was looked as a cumbersome and time consuming act
Only affluent class could afford shaving on a daily basis due to higher costs &time consumption.
King C. Gillette – Introduced a safety razor in the year 1895.
Gillette invented a permanent razor “blade” with two sharpened edgesproducing a safe shaving experience.
Men's Wet -Shaving Market :A Cheap plastic handled razor & blade systems (11-14 Shaves).Market Share raised from 22% to 41.5%. Permanent razors andblades systems.
Lower profitability (By 1/3
rd
) for replaceable blade system as compared tpermanent razors.
Retailers preferred to sell razors as takes less display areas & higher salesmargins to retailers for razor systems.
US retailers allocated Blade & Razors stock to disposable razors (55%),Systems(40%) & double edge razors(5%).
Gillette having wet shavingmarket share(60%) of worldwide &US (61.9%).
Gillette leveraged cartoonsads, radio shows, musical slogans, theme songs with quizzes and contests.
 
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Marketing Strategy Analysis |
Sustained profitablegrowth
Gillette was marketing 800 products in 200 countries. They applied Fist regionally then Globally.
Gillette is famous for its innovative approach with the launch of First Safety Razor (1895), Blue Blades(1932), Thin Blades (1938), Silicon coated blade (1959) and Super Blue Blade (1961) with Market Share of 61% & double edge blades 90%. Trac II system : “Hysteresis”- a double blade cut process.
 To speed up growth through inorganic channel, it acquired Toni Company -Women's grooming aid market;Paper mate -A writing instruments co; and Sterilon Co.-Disposable Hospital supplier
Launched Good News! – A contain & switch strategy which did not succeed, A disposable razor deliveredlower profit margins than razors & blades. As it was marketed on Price & convenience not performance.
Gillette faced competition from SCHICK, BIC Corp. and Wilkinson Sword.
In order to avoid the takeover attempt by Coniston, Gillette increased debt by $2billion.
Gillette South Boston Plant- Employed 2K-3K for testing shaving products.
Introspected reasons for lower profits : Higher sales of low prize razors, low marketing spending.
Gillette advertising being Product Based (90%) and Image Based (10%).
Created different brand images for Gillette – By Men over 40 (Athletes & Sports) & younger generations(Twin Blades, Blue & plastics) .

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