GILLETTE

The Razor-Wars Continue

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

      

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

“To build TOTAL BRAND VALUE by innovation to deliver consumer value and customer leadership faster, better, and more completely than our competitor” Principles:

 Fundamental

› Organizational Excellence
 Superior performance at every level

› Core Values
Achievement, Integrity, Collaboration

 

$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

SHAVING
MEN MACH 3 MACH 3 TOURBO SENSOR SENSOR EXCEL WOMEN VENUS SENSOR DAISY

PERSONAL CARE
SHAVING GELS AND FOAMS GILLETTE SERISE SATIN CARE ANTIPERSPIRANT S AND DEODRANTS GILLETTE SERISE RIGHT GUARD SOFT & DRI DRY IDEA

DURACELL BATTERIE S
GENARAL USE BATTERIES COPPER TOP ULTRA PRISMATIC SPECIALITY BATTERIES PHOTO HEARING AID CAMCORDER WATCH ELECTRONICS HOME MEDICAL

ORAL

B

MANUAL TOOTHBRUSH ES ADVANTAGE INDICATOR CROSS ACTION STAGES POWER TOOTHBRUSH ES 3D EXCEL 3 D PULSATING CROSS ACTION KIDS FLOSS AND INTERDENTAL SATIN floss ULTRAFLOSS ESSENTIAL FLOSS SUPER FLOSS ORTHODENTIC TOOTHPASTE AND MOUTH RINSE

BRAUN APPLIANCE S
BRAUN KITCHEN APPLIANCES BRAUN HAIR CARE EPILATION

BARUN STEAM IRONS

PERSONAL DIOGONASTIC

The Sensor (1990) Sensor Excel For Men(1993) & For Women (1996) The Mach3 M3 Power Nitro Mach3 Turbo Gillette For Women Venus Venus Vibrance Venus Divine Venus Disposable Fusion

Expansion of existing market.  Continuous innovation.  Research & development  Well integrated programme of marketing mix elements.  Market leadership in men’s shaving products.

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!!!!

         

Cause 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 Suits Gillette lawsuit of patent infringement against Schick. Schick sued Gillette for misleading advertisement. Bad 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.

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

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

      

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

 Macro-environment

Economy  Legal & Political Issues Technological Advancements  Socio-cultural Trends

 Market

Domestic vs. International market  Market Size  Buying behavior Trend

Demographic Geographic Behavioral Description

 Competition  Product  SWOT

Men’s Product

Schick Quattro Power ($11.99)
4 for $10.49 8 for $19.99

Gillette Fusion Power ($11.99)
4 for $14.29 8 for $28.99

BIC Comfort 3 $4.29 for 4 Comfort Twin Sensitive $ 5.29 for 10 Sensitive $3.29 for 12

Quattro Titanium ($8.99)
4 for $10.99

Fusion($9.99)
4 for $12.99 8 for $23.99

Quattro Power ($8.99)
4 for $9.29 8 for $16.99

M3 Power Nitro ($11.99) Mach3 Turbo ($8.99) Mach3 ($8.29)

Women’s Product

Schick Quattro for Women ($8.99)
4 for $9.29 8 for $16.99

Gillette Venus Vibrance ($8.29)
4 for $8.49 8 for $19.99

BIC

Intuition Plus ($8.99)
3 for $9.49

Venus Divine($8.99)
4 for $9.49 8 for $17.99

Comfort Twin Sensitive $ 5.29 for 10

Intuition ($8.49)
3 for $8.29 6 for $14.99

Venus Disposable ($7.99) for 3

  

  

Superior Product benefit The ability to meet consumer needs. Dedication and commitment to product design and refinement leading to significant improvements over currently available products Strong financial support for all areas including marketing. Ability to take risks Commitment to comprehensive promotional strategy.

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.

 Innovation

should be time specific  Concentrate on promotion of complementary products  Try to cater mass market