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Imc Case Study

Imc Case Study

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Published by: Deepanshi Bansal on Oct 02, 2012
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CASE STUDY ON GILLETE

BY: SALONI , GUNJAN , IMA , ABHILASHA, DIVYA, DEEPANSHI

Gillette 1904: King Gillette's idea for double edged safety razor was awarded a patented 1905: By end annual production grown to 2. Braun AG 1971: Company is organized into four domestic divisions: the Safety Razor Division.000 razor sets & 1.50. the Personal Care Division.00. and the Paper Mate division        .COMPANY BACKGROUND  1901: American Safety Razor founded by King C. the Toiletries Division (featuring Right Guard antiperspirant). Soft & Dry antiperspirant(1963) Key Acquisitions: Toni company. Paper Mate.000 dozen count blade packages 1918: Gillette manufactured razors and blades for soldiers during World War I New product lines added : Internal Development: New product included foamy shave cream(1953).

Safety Razor Division   SRD accounted for roughly half of the worldwide sales of razors & blades Founded on a strong program of R&D. SRD took Trac II concept further with introduction of Atra. twin blade razor    In 1975 Twin blade concept was transferred to two disposable razors – the Daisy shaver for women & Good News for men Gillette SRD’s 1985 product line consisted of cricket disposable lighters & widget   Gillette SRD employed a product management form of organization .the Trac II twin blade shaving system & became market leader In 1974. SRD introduced a technological triumph. a lightweight. Gillette SRD managed to market new shaving products In 1971.

Gillette made it first sports event sponsoring in 1939 of about $200. Testimonials by famous sports personalities as a advertising technique. • Sales increased four times the estimated figures.000. • • . Introduced into boxing event sponsoring and moved into television.

   Newspaper delivered coupons. Display. . SRD was promoted 6-8 times a year.  Reduce the shelf price. Advertise.

Adam’s had a budget of $1. . Tentatively he decided to combine the 3 SKU’s that is Atra 5 pack.2 million for consumer promotion for the safety razor brands. Initially he decided to recommend trade plus consumer offer where consumer offer should be delivered through FSI Program. Trac 5 pack and Good news razor 10 pack into a one group for consumer promotion.CYCLE 1 PROMOTION     It was the job of sales promotion manager to recommend promotion to the brand groups that would maximize results.

  Til october 1985 had achieved distribution in less than 15% of food and drug store nationwide. .As Atra and trac were the 2 largest selling SKU’s in the shaving market and Good news was the newly introduced package.

redeemable by the consumer on any of three promoted items.TRADE PROMOTION OFFER  Consumer promotion I FSI can be used to deliver 20 coupon. Consumer promotion II a free travel kit offer would substitute for the coupon  .

FSI coupon FSI coupon was automatically viewed by these audiences as a promotion event and no special efforts were required to hype the promotion with sales force and trade.BOB ADAMS’ DELIBERATIONS    Option I :. Best estimate said that the 20 coupon would redeem at roughly 13 times the rate of the premium offer. .

83% of females are redeemers and 57% of male. He considered whether the travel kit itself should be imprinted with the Gillette name and logo.The nature of the premium was a positive factor in long run and travel kit would be seen by many customers as an aid in organizing their shaving materials during travel. .81% of female. This would add 10-20% to the cost of the kit.27% of females are hevy users and 13% of males. and 19% male. Coupon redemptions:. For long run aspects:.      Coupon redemption facts Grocery shopping by :. Heavy coupon users (5+ / week) :.

he recalled cardboard display plus shipper and packing costs about $2. Travel kits would have to be sold heavily to the trade..     .50 Travel kit promotion :. He thought of offering free travel kit for trade buyers to get them personally involved in the promotion. Travel kit would pose special challenges in marketing to the trade.if separate display then 6000 and if combined 4000 for 3 products.display quantity needed:.  Issue of implementation :Success appeared to be heavily dependent on Bob’s redemption estimate. Then he thought of display unit that would flag the premium offer . On past experience .

   Success of the travel kit would require full support from SRD sales force and trade and redemption of the offer would require major monetary and time commitment. .000 and could be funded out of 3 brand’s advertising budgets And also can be promoted by radio. He also thought that low level campaign would cost $100.

what feature price should the Gillette salesperson suggest to the retailer assuming that the retailer will use the off-invoice only as reducing retailer costs ?     How do sales promotion and advertising differ in the planning process ? In execution ? . Make sure that each plan has objectives and a listing of tools and their costs ? What are the pros and cons of each option ? Which do you choose ? Why ? For each promoted item.QUESTIONS ?  Evaluate the various promotional tools described in the case. What is the specific marketing objective(s) of each ?  Put together two promotion plans – one for option 1 and one for option 2.

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