GILLETTE INDIA LTD

(Indian Shaving Products

Limited ISPL)

Tamandeep Singh Bajaj 11P172

Tejas Sharma 11P173
Udbhav Mishra 11P174
Gunjan Jain 11P190
Vipin Aggarwal 11P238

MARKET SIZE
2.4 billion blades in a year in 1992
Rs 250 crores at retail price Value term
15 to 20 crores Indian shaving male population
Carbon steel blades making the bulk of the
market
Stainless steel blades present only in urban
market
Less than 2% market Twin Blade Segment

CURRENT SCENARIO
Distribution shared with Lipton Tea @ 5 %
margin
Considered as natural fit with synergy for both
parties
7% margin for Stockists on ISPL products
Price of product about 50 -80 % over prices of
Wiltechs product, whose prices are 50% over
Malhotras

PROBLEMS
Less than 3 % of total market after 2 years
Market share in double digits in cities
Doubts on retail coverage
No Promotion Flow

Replenishment time different for each product

No information flow for Gillette

MALHOTRAS DOMINANCE
80-90% Market share Malhotras with brands
like Panama, Topaz, Laser etc
7 manufacturing units the largest being in
Calcutta with a capacity of 1500 million blades
per annum
Distribution network

Special Promotions for the trade and stock push

Market Geography
Urban Markets
Rationale

Stainless Steel blades

Prices are almost double
than Malhotras brands

Market Density

Number of buyers or
potential buyers per unit of
geographical area is high
To achieve a high level of
customer access at low cost

Market Size

2.4 billion blades in 1992

Rs 250 crores in Value
15 -20 crore - Indian shaving man
population
Less than 2% market Twin Blade
Segment
Stainless steel blades only used in
urban areas

Market Behavior

High convenient location

FMCG Product
Consumer Male
First Purchase Decision Male
Physical PurchaseMale/Female

PROPOSED DECISION
To Build its own distribution channel
Rationale Platform for future Gillette Products
Better channel flows (information flow in this
case)
Focused sales team
No margin required to be paid to third party
(Lipton)
To target shop by shop basis

SERVICE OUTPUTS TO BE
DELIVERED BY CHANNEL
MEMBERS
Bulk Breaking
Assortment
Zero waiting time
Spatial Convenience

CHANNEL STRUCTURE
Manufacturer

Distributor

Retailers

Customer

Rationale
Distributors would have exclusive buying arrangements with the
manufacturer and each distributor would cover a certain territory
The distributor would supply all retailers in the given area
Would facilitate better information flow
Distributors will also perform the function of promoting the product
among the retailers