The Gillette | Razor | Shaving

The Gillette® Fusion® ProGlideŒ Power Razor is Gillette¶s most advanced blade ever.

Thinner, finer blades* with a low-resistance coating glide effortlessly through hair for less tug and pull, providing incredible comfort, even if you shave every day. Try Gillette Fusion ProGlide today; after one shave, you¶ll stop shaving and start gliding

Company profile
Gillette India Limited (GIL) is one of India's well-known FMCG Companies that has in its portfolio GILLETTE MACH 3 TURBO, ORAL-B and DURACELL - world's leading brands and has carved a reputation for delivering high quality, value-added products to meet the needs of consumers. COMPANY HISTORY: Incorporated in the year 1985 as Indian Shaving Products Limited, now Gillette India Limited, its products speak for themselves. The company is always been known for the strength of its brands, and always continues to penetrate deeper into the hearts of Indian Consumers. In the year 1990-91, the company launched two products, first was 7 0'Clock EJTEK PII Shaving System and second was shaving cream with three variants. This was the First time that a shaving cream was introduced in Indian markets with special features. In the Year 1991-92, the company launched new technology Gillette products. In the year 1992-93, the company launched the first advanced shaving product under the Gillette brand name Gillette Presto ready shaver all over India. The company earned distinction of being included for the first time in the top 100 companies in India, in terms of Market capitalization as published in Business today. In the year 1993-94, with the launch of Gillette Presto Ready shaver in February 1993, the company commenced the launch of Gillette Shaving Products in India. In the year 1995-96, launch of 7 0'Clock Ready II ready shave and relaunch of shave cream in two variants, further strengthened the Brand name. During the year the company also launched under a distribution arrangement tooth brushes under a well known international brand name Oral-B, which met good success. In the year 1996-97, the company launched the latest state-of-the-art Gillette Sensor Excel shaving systems which met excellent consumer response. With the launch of these various products, the portfolio of Gillette branded products has increased significantly. In the year 1997, the company launched World renounced Gillette Sensor Excel for Women shaving system, which met great response. It also launched Gillette Shave foam which was met with good consumer response. In the year 1998, the company successfully launched the Gillette Series range comprising Shave gel, Shave Foam, After Shave Splashes, Conditioners and Deodorants, thereby making it the premier male grooming company

In the year 1999, the company introduced Gillette Series shave gel tube and Gillette Sensor Excel single cartridge pack. Also successfully launched Cool wave and Wild Rain range of personal grooming products under the Gillette series line. In the First month of new Millennium, the company launched Gillette Mach 3. In the year 2000, the company launched successfully Gillette Sensor Excel for women grooming category, and also launched Pacific Light. It also launched Geep Laserlite, a Sport flashlight. Company successfully consolidated Duracell and Wilkinson business to leverage distribution strengths with mega displays and sales promotion. In the year 2001, the company launched the Gillette Series Arctic Ice Line of products during the first half and undertook a series of very successful consumer promotions across product lines. It also launched the Gillette Series Satin Care for Women Wild Berry Line, the Cool Blue Mach 3 and Gillette Centennial Packs during the course of the year. Gillette India was ranked amongst the Top Ten Best Employers of India in Best Employers of India conducted by Hewitt Associates and Business Today magazine. In the year 2002, this was the year of turnaround for the company. In the first Quarter of 2003 unveiled a whole new range of premium displays and POS of Duracell to establish leadership in Alkaline batteries segment. The company made history by bringing the FIFA World Cup Champions Trophy to India for the first time. In the year 2003, Company successfully relaunched Gillette Foam in 4 Variants .Duracell also launched its Ultra M 3 AA batteries, which was well received by consumers. Oral Care launched Power Oral Care brushes, which were well received in the market. Towards the End of 2003, Company launched Gillette Vector Plus. In the year 2004, the Company launched Storm Force, a revolutionary after shave splash and New Ultra Comfort Shaving Gel .In the fourth Quarter, Company launched two new Gillette Series Tube Shave Gel variants, namely for Sensitive skin and Moisturizing, to suit different skin types. In the year 2005, Company launched ?New Improved Gillette Vector Plus featuring all new contemporary look. The Gillette Company, USA was acquired worldwide through merger in October, 2005 by Procter& Gamble Company, USA creating the largest Consumer products Company in the World. In the year 2006-2007, Company launched Gillette Presto Plus for more discerning consumers. Oral B brand launched Oral B Vision and Kid in Premium Market Segment. In the year 2007-2008, Company launched The Gillette Winners program that had sports legends Roger Federer, Thierry Henry and Tiger Woods and Rahul Dravid. An innovative program "Free Dental Check up" was organized to enable consumers to benefit from expertise of professional dentists at no cost. OralB brand launched a new variant "Shiny Clean" targeted at the value segment.

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Corporate social responsibility

P&G launches SHIKSHA'08
You can now help educate more Underprivileged children via simple brand choices.P&G committs Rs. 1 crore. to its partner CRY, which will be allocated to projects focused on enabling the child's right to education. Project Shiksha is part of P&G's global philanthropy program P&G Live, Learn and Thrive that focuses on the development of children in need across the globe, with Education of Children via Shiksha being the priority in India. Till Date, Shiksha has set 67,000 children across 435 communities on the path to the right to education with a donation of over Rs.4 crore.

P&G¶s Corporate Social Responsibility Program makes it easy for all consumers to help educate underprivileged children by simply buying any of P&G¶s large packs of Tide.4 crore.000 children across 435 communities on the path to the right to education with a donation of over Rs. Project Shiksha is part of P&G¶s global philanthropy program P&G Live. Gillette Series. the Shiksha projects include ones that work with the State Education Departments to re-look at existing education policies. H&S. 1 cr. Oral B. 2008 /India PRwire/ -. In this endeavour with us to bring Shiksha to life is key NGO partner CRY. Gillette Mach 3 Turbo. with Education of Children via Shiksha being the priority in India. Thrive and Shiksha is . (close to 200 million) do not go to school.µP&G announces Shiksha¶ school eduction program of underprivileged children in India. Procter & Gamble in partnership with Child Rights and You is back again with SHIKSHA 2008.000 children on the path of education over the last 4 years. Ariel. Duracell or Pampers in the months of April. create awareness to build more schools with better infrastructure and basic amenities like water. which will be allocated to projects focused on enabling the child¶s right to education. Pantene. a National Consumer Movement now running in its 4th year. but still approximately one out of every two children. P&G globally is committed to the cause of development of children in need via its corporate cause P&G Live. "As the economy grows at 8-10% levels. May & June µ08. Managing Director. electricity. Every child in India has the right to free. Olay. P&G India said. Learn and Thrive that focuses on the development of children in need across the globe. Shiksha has set 67. In an attempt to make a difference is when Procter & Gamble in partnership with Child Rights and You. we need to ensure that we lay down a strong foundation for this growth to continue by investing in our future generation.Hyderabad. statistics indicate that there are many challenges like poverty that will need to be taken in stride if this growth is to be sustained. April 14. Shantanu Khosla. quality education. and build all-round development of children. Informing about Shiksha. Whisper. Vicks VapoRub. Even as the economy continues to grow at a fast pace. With the help of CRY. After helping lead over 67. In that context. India has the world¶s largest number of children out of school. Shiksha. Project Shiksha is a national consumer program that allows consumers to participate in a national effort to support the education of underprivileged children in India via simple brand choices. However. health. enroll more children into formal schools and promotion of retention in schools. P&G has committed a minimum of Rs. Rejoice. to its partner CRY. launched Shiksha. With a motto of µPadhega India. Irrespective of sales. Badhega India¶ Shiksha believes that the secret to a Brighter India lies in the quality education of our children. Learn. education becomes a fundamental issue that needs to be addressed. Till Date. Andhra Pradesh.

our response to the situation in India. Shiksha is unique because it empowers the consumer to make a difference simply by choosing to buy quality products from P&G. Shiksha is not just an initiative of one corporate and an NGO but a passion we as an organization strongly believe in. µPadhega India¶ Tabhi tho µBadhega India¶." Irwin Fernandes, Director Western Region, Child Rights and You said, "The financial support P&G, its media partners and consumers provide to CRY¶s work is invaluable. Even more critical, however, is the awareness of child rights that Shiksha helps create and the avenues it provides for each of us to bring about change with social justice. India will only achieve her true potential, when we make child rights our topmost national priority. To do this we have to go beyond schemes and programs to address the real obstacles to growth ± caste, class, gender and governance. P&G¶s choice to go beyond tokenism, to partner CRY and take the challenging route is truly inspiring. I urge every Indian citizen to stand up for child rights. Shiksha Supporter and Award Winning Actress Kajol said, "Shiksha, education, is one of the most critical factors deciding the choices that life offers to a child. However, millions of children in this country today are being deprived of this very important opportunity because quality education is only possible when every child has adequate nutrition, proper healthcare, can live in safe surroundings, is free to study, rest and play, and doesn¶t have to work for a living. I support project Shiksha in its endeavours to make a difference. Shiksha Supporter and Veteran Actress Sharmila Tagore said, "I believe education plays a fundamental role in shaping a citizen and leads the country to greater heights. In that sense, education can be the foundation for an India we seek today where every child explores his or her full potential and has the right to do so. Therefore, it is heartening to know that people like you helped support the education of 67000 children last year. I urge people across India to participate in Shiksha and make a tangible difference to the lives of the little ones." Shiksha supported projects in 2006 ± 2007. 1. JAAG (Mumbai, Ratnagiri, and Raigad, Maharashtra), 2.Lokhit Samajik Vikas Sanstha (Osmanabad, Maharashta), 3. The Association of People with Disability (Kolar, Karnataka), 4.Adhar (Bolangir, Orissa), 5.Mandra LC (Purulia, WB), 6. Paridhi (Bihar), 7. Judav (Madhupur, Jharkhand), 8.Jan Shikshan Kendra (UP), 9. Jan Mitra Nyas (Varanasi, UP), 10.Hanuman Van Vikas (Udaipur, Rajasthan), 11.Doaba Vikas Evam Utthan Samiti (Kaushambi, U.P. 1. JAAG (Mumbai, Ratnagiri, and Raigad, Maharashtra), 2.Lokhit Samajik Vikas Sanstha (Osmanabad, Maharashta), 3. The Association of People with Disability (Kolar, Karnataka), 4.Adhar (Bolangir, Orissa), 5.Mandra LC (Purulia, WB), 6. Paridhi (Bihar), 7. Judav (Madhupur, Jharkhand), 8.Jan Shikshan Kendra (UP), 9. Jan Mitra Nyas (Varanasi, UP), 10.Hanuman Van Vikas (Udaipur, Rajasthan), 11.Doaba Vikas Evam Utthan Samiti (Kaushambi, U.P)µP&G announces Shiksha¶ school eduction program of underprivileged children in India. After helping

lead over 67,000 children on the path of education over the last 4 years, Procter & Gamble in partnership with Child Rights and You is back again with SHIKSHA 2008

Gillette Children's Specialty Healthcare is an independent, not-for-profit hospital located in St.
Paul, Minnesota, with clinics in Duluth, Burnsville, Maple Grove, Minnetonka, and services for adult patients at our St.Paul - Phalen Clinic. Gillette is internationally renowned for a level of pediatric expertise that distinguishes us from many health care organizations

Gillette Children's Specialty Healthcare
y St. Paul Campus o y y y y y y y 183 - Administration Building St. Paul - Phalen Clinic Brainerd Lakes Clinic Burnsville Clinic Duluth Clinic Maple Grove Clinic Minnetonka Clinic Willmar Clinic

Gillette brands

Gillette is a brand of Procter & Gamble currently used for safety razors, among other personal care products. Based in Boston, Massachusetts, it is one of several brands originally owned by The Gillette Company, a leading global supplier of products under various brands, which was acquired by P&G in 2005. Their slogan is "The Best a Man Can Get". The original Gillette Company was founded by King Camp Gillette in 1895 as a safety razor manufacturer. On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading² symbol G on the New York Stock Exchange²was September 30, 2005. The merger created the world's largest personal care and household products company. In addition to Gillette, the company marketed under Braun, Duracell and Oral-B, among others, which have also been maintained by P&G.

The Gillette Company's assets were initially incorporated into a P&G unit known internally as "Global Gillette". In July 2007, Global Gillette was dissolved and incorporated into Procter & Gamble's other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household Care. Gillette's brands and products were divided between the two accordingly. Safety razors A safety razor is a razor that protects the skin from all but the very edge of the blade. These razors eliminate the possibility of serious injury, which makes them more forgiving than a straight razor.

History
Before the first safety razor
Before the invention of the first safety razor, most men used a straight razor. These razors are available from several different manufacturers; but they are not very popular, because they require more skill and attention to use properly

Invention
The first safety razor was invented in the late 18th century by a Frenchman, Jean-Jacques Perret, who was inspired by the joiner's plane. As an expert on the subject, he also wrote a book called Pogonotomy or the Art of Learning to Shave Oneself. In the late 1820s, a similar razor was made in Sheffield, England. From the 1870s, a single-edge blade, mounted on a hoe-shaped handle, was available in Britain and Germany. One of the rarest[citation needed] European razors was made by "Comfort"[1] and, while this was not a true safety razor, it remains a landmark in razor design.[citation needed] None of these razors is considered a true safety razor. Described as a razor in which "a small blade is held in a suitable frame and provided with a guard to prevent the edge of the razor from cutting into the skin", the first American safety razor was patented in 1888 by the Kampfe Brothers.[2] The new razor featured a wire skin-guard along the razor¶s edge. Only one edge of the blade is used to shave, and it must be removed often for sharpening.

World War I During World War I. The most common of the single-edge razors were made by the American Safety Razor Company under the name EverReady using its "'Radio' Blades". although most shavers use blades that are made specifically for shaving. This razor is so named because the blades have a single edge rather than double edges. Gillette manufactured carbon steel blades until the 1960s. By the end of the war.S. Armed Forces to provide Gillette safety razors and blades to every enlisted man or officer on his way to Europe as part of his standard-issue gear. It is possible to use common hardware-store blades for shaving. These razors.[3] Single-edge razors A less common variety of the safety razor is the single-edge razor. Wilkinson quickly captured the British and European markets. which it called "The Honest Brush". Another was the Gem Safety Razor Company under the name "Gem Damaskeene Razor". Gillette worked out a deal with the U. Today. . its modern version does not rust if it is rinsed in alcohol after each shave. thereby converting a substantial portion of young men to the Gillette safety razor. almost all razor blades are stainless steel. the British company Wilkinson Sword began to sell blades made of stainless steel. and Gillette was forced to switch its production lines to stainless steel to compete. which did not rust and could be used repeatedly until blunt. In 1965. the company also produced a shaving brush.5 million razors and 32 million blades were put into military hands. although not in use as much as they were in the 20th century. These rusted quickly and required the user to change blades frequently. Because Gillette held the patent for the stainless blades but had not acted on it. the company was accused of exploiting customers by forcing them to buy the rustprone blade. The carbon-steel blade remains available. some 3. Switch to stainless steel Gillette TV advertisement from the 1950's showing a man shaving. are still available worldwide.

Lord. Racer. Israel. Safety razor blades are available from a variety of makers throughout the globe including the American Safety Razor Company (ASRCO). Availability today The 1961 Gillette Adjustable razor (commonly called the "Fatboy") Single blade razors new and old are actively traded through auction sites and some shavers prefer them. and Parker. Croma. which affects the level of aggressiveness of the shave.Modern safety razors Double-edged safety razors A traditional double-edged razor blade. disposable razor blade. Treet. Adjustables may also be sandwich type. Korea. Russia. Treet. Weishi. but typically have a ring below the head of the razor that may be adjusted to allow for greater or lesser blade exposure. and Gillette. most safety razors were manufactured to accept a single. Derby. These blades were manufactured with either one or two sharpened edges. Japan. This style of razor is made by a number of companies such as Merkur. adjustable. Two popular TTO razors are the Gillette Super Speed and Schick Krona. with its typical recognizable shape Until the early 1970s. Lord. . Feather. TTO razors require the user to twist a knob at the bottom to open butterfly doors where the blade is. The sandwich type has a head that may be unscrewed from the body of the razor and disassembled for inserting a new blade. Bigben. Bic. and the Twist to Open (TTO) model. Dorco. Feather. Some of the brand names include Merkur. Single-blade safety razors come in a variety of configurations including the classic sandwich type. Merkur. depending upon the design of the razor. Treet and Bic. The blades are still being made today in a wide variety of countries including the USA. and Egypt.

leading to higher profits. which featured twin blades that were individually spring-loaded to adjust to the contours of the face. Gillette modified the Good News construction to add an aloe strip above the razor. . because of hysteresis ² the first blade tends to pull the hair. Twin blades Circa 1971. with the blade fixed within a plastic enclosure of the type still in use today. Whether. Gillette's response was the Good News disposable razor which was launched on the US market in 1976 before the Bic disposable was made available on that market.[5] Shortly thereafter. Gillette introduced the Trac II. Gillette followed the Atra system with the Sensor system. Gillette was able to sell these cartridges at a higher price than the single blades. designed by Francis Dorion.Cartridges introduced An innovation was the replaceable blade cartridge containing the blade which reduced the risk of the user receiving a cut from the unprotected blades used up until then. are in common use today. resulting in the Good News Plus. or the degree to which this works. The claim is that research shows that twin blades give a closer shave than single. five cutting edges). this razor was fitted with a proprietary disposable blade cartridge containing two separate blades. Competitors Schick and ASRCO were quick to follow this change. which featured a pivoting razor head that the company claimed would more closely follow the shape of the face. introducing their own multi-blade razors. Gillette subsequently introduced the Atra twin-blade razors (known as Contour in many parts of the world). is debatable. The Trac II Plus and Atra Plus blades introduced later incorporated a "lubricating strip". which was the first mass-produced multi-blade razor available in the United States. resulting in a closer shave. Disposable razor The next innovation came with the introduction of the Bic disposable razor in 1974. The purported benefit of the aloe strip is to ease any discomfort felt on the face while shaving. This was a natural extension of the razor-and-blades sales philosophy. the entire razor was manufactured to be disposable. The Sensor system was later modified as the SensorExcel system. Rather than accepting standard razor blades. Gillette was able to assure repeat sales of its multiblade cartridges for use in its razor. In 1965 Gillette introduced the Techmatic razor which utilized a cartridge with a steel strip that could be wound forward to expose a fresh section of new blade.[4] By controlling patents on the Trac II razor. often with two or three cutting edges (but sometimes with four and as of recently. Plastic disposable razors and razors with replaceable disposable blade attachments. and the hair is unable to retract into the skin before the second blade cuts it. These took the form of a cartridge. Instead of being a razor with a disposable blade.

Gillette has also produced powered variants of the Mach3 (M3Power. Subsequent to introducing the higher-priced Mach3 in 1998. The marketing competition for blades in a cartridge has been parodied since the 1970s.3. shortly after the first two-blade cartridge for men's razors was advertised. as advertised by Gillette. The debut episode of Saturday Night Live in 1975 included a parody advertisement for the Triple Trac Razor.and 4-blade cartridges introduced Gillette introduced the first triple-blade cartridge razor. These razors accept a single AAA battery which is used to produce vibration in the razor.[7] Schick/Wilkinson responded to the Mach3 with the Quattro.[8] Recent developments Gillette Fusion razor cartridge. Another impetus for the sale of multiple-blade cartridges is that they have high profit margins. These innovations are marketed with the message that they help consumers achieve the best shave as easily as possible. These claims were ruled in court as "unsubstantiated and inaccurate. and profits increased in an otherwise mature market."[9] Schick also offers a powered version of their Quattro product called the Schick Quattro Power. This action. We're Doing Five Blades" predicted the release of five-blade cartridges. was intended to raise hair up and away from the skin prior to being cut. In 2004. An entire line of shaving products were introduced as part of the Fusion brand system. which utilizes a five-blade cartridge razor with an additional single blade for trimming. and later upgraded the Sensor system by adding a third blade to create Sensor3. a satirical article in The Onion entitled "Fuck Everything. . This escalated the "arms race" with rival Schick/Wilkinson Sword. for as long as the manufacturer continues to make them.[6] two years before their commercial introduction. the Mach3. Gillette's blade sales realized a 50% increase. the first four-blade cartridge razor. The latest razor introduced by Gillette is the Gillette Fusion brand shaving system. consumers can become locked into buying their proprietary cartridges. in 1998.[8] With manufacturers frequently updating their shaving systems. M3Power Nitro) and Fusion (Fusion Power and Fusion Power Phantom) razors.

By and large. o Trac II Plus is an identical model but adds a lubricating strip at the top of the blade. As of January 2011. Newer products y Trac II was the world's first two-blade razor. debuting in 1971.In 2008 British company King of Shaves launched in the United Kingdom the 4-blade Azor. Gillette claimed that the second blade cut the number of strokes required and reduced facial irritation. dubbed Lubra-Soft. The blades and handles are interchangeable. y Atra (known as the Contour. women's razors either have a longer handle for longer reach or a paddle-shaped handle to allow for a lengthwise grip. a so-called "hybrid synergy system razor" that they claimed to shave as close as rival products. however. "Slalom" in some markets) was introduced in 1977 and was the first razor to feature a pivoting head. The Azor has now been launched in the USA at Duane Reade. the Dutch supermarket chain Albert Heijn sells. King of Shaves claimed that the number of blades is not strictly important. Specialized handle designs also exist. men's and women's razor blades and disposable razors are interchangeable. The Azor has a flexible hinge instead of a pivoting head used by other razors. Difference between men's and women's razors Woman's razor with disposable blades Razors are generally marketed in men's and women's versions. . The European versions of the Trac II and Trac II Plus are known as the GII and GII Plus respectively. under its store brand. which Gillette claimed made it easier for men to shave their necks. for shaving such areas as the underarms or the bikini line. o Atra Plus featured a lubricating strip. it is the sharpness and cleanliness of the blades that is important to getting a close shave. sixblades razor cartridges. the exact difference between the two varies from color only for most disposable razors to completely different design principles. The Azor uses a much simpler two-shot construction method than other system safety razors and the handle is made in the UK. there is sometimes a difference in ergonomics.

All Sensor handles can use all Sensor cartridges. and was the first razor to have spring-loaded blades. a new grip and claims improved lubrication and "anti-friction" blades. and the "Good News! Pivot Plus". introduced in 1998.  Mach3 Turbo Champion has a slightly different handle design. making for a closer shave. the "Good News! Plus". The **Sensor for Women was released around the same time and is nearly identical. o Venus Vibrance is a female version of the M3Power. and a pivoting head with greater flexibility than previous Gillette products. The Mach 3 Power Nitro has a slightly different handle design. o Mach3 Turbo had ten microfins as opposed to the five on the original. Gillette claimed that the blades receded into the cartridge head. The lubrication and microfins are identical to Mach3Turbo. helping to prevent cuts and allowing for a closer shave. Sensor 3. it is marketed as the Prestobarba. when they make contact with skin. which Gillette claims reduces irritation and requires fewer strokes. Mach3 The first three-blade razor. The blades differ from Mach3 Turbo in having what Gillette says is a new blade coating which it describes as "PowerGlide". The Mach3 razor and blades are the best selling razor of all time.y Gillette Sensor debuted in 1990. o Sensor Excel was released in 1995. It used a blue lubrication strip that faded as the razor was used to encourage users to change their blades more frequently. y y y y y . so it is possible to use the Mach3 Turbo blades on a Mach3 razor. improved spring blades." a piece of rubber with slits at the bottom of the cartridge and Gillette claimed this helped to raise facial hairs. Blue II is a line of disposable razors. Venus blades are interchangeable across the line. o Venus Embrace is a female version of the Fusion and is also marketed towards cyclists. o Venus Divine is a female version of the Mach3 Turbo. The above with a different plastic handle. but has a wider cartridge head. The Sensor range remains in production Good News! was the first disposable. This featured "Microfins. which featured a lubricating strip as well as a pivoting head. released in 1976. has three blades instead of two. The Good News! came in three forms: the "original". It claimed five improved microfins. Mach 3 blades can attach to a Venus handle and vice versa. double-blade razor. Blue 3 is a line of three-blade razor. Venus is a female version of the Mach 3. which included a lubricating strip. cheaper version of Sensor 3 (Sensor compatible).[ o Mach3 disposable. All Mach3 blades are interchangeable between the three products in the range. In Latin America. Available also in disposable variant. o M3Power is a battery-powered version of the Mach3 Turbo razor which can also be used with the power switched off.

It features a redesigned handle and a darker color scheme than the original.[5] o Fusion ProGlide was released on June 6. [1] o Venus ProSkin MoistureRich. The cooperation and support extended by the Gillette management also merits special mention. 2010 in North America. which are claimed to allow the blades to glide more easily through hair. Thank you.Venus Breeze is a three-blade razor with shave gel bars built into the head of the razor. His guidance and efforts were vital for the completion of the project for which we are thankful. the Venus Spa Breeze. [6] o Fusion Power Cool White 2 ACKNOWLEDGEMENTS The following project ³GILLETTE: BETTER VALUE. The Fusion has five blades on the front. is essentially the same as the Breeze. Delhi School of Economics. BETTER SHARE´ and the customer survey were successfully completed under the guidance of Prof S K Jain. and a single sixth blade on the rear for precision trimming. All the people who filled up the questionnaire also deserve to be appreciated for their help. Another version of the Breeze. The Fusion Power is battery powered and emits "micropulses" that are claimed to increase razor glide. Lecturer. 3 . We also thank our friends for their valuable and insightful suggestions. comments and criticism. o Gillette Fusion Power is a motorized version of the Fusion. but with a white tea scent to the shave gel bars. It has a new blue and silver color scheme. [2] o The Gillette Fusion Power y Gillette Fusion is a five-bladed razor released in 2006. It claims to have re-engineered blades with edges that are thinner than Fusion. launched in January 2011 in the United States. They are finished with low-resistance coating. featuring MoistureRich shave gel bars that are enhanced with a triple blend of body butters. is an updated version of the Breeze. cooperation and sometimes patience.[4] o Fusion Power Phenom was released in February 2008.[3] o Fusion Power Phantom The Fusion Power Phantom (Stealth in UK) were released in February 2007.

. 12 a) Overview b) Michael Porters Five Force Model 4) Competition «««.INDEX Page 1) Objectives «««««««««««««««««««««.. 6 3) Market Environment ««««««««««««««««««. ««««««««««««««««««« 21 5) Analysis of Marketing Strategies «««««««««««««« 24 a) Brief Overview b) Perceptual Map c) Market Segmentation d) Target Markets e) Positioning 6) Marketing Mix «««« «««««««««««««««««« 40 7) Product Strategy ««««««««««««««««««««« 43 a) Five Product Levels b) Product Classification c) Packaging and Labelling d) Product Innovation: R&D 8) Pricing Strategy««««««««««««««««««««««. 5 2) Company Profile «««««««««««««««««««. 53 a) The Nine Price Quality Strategies b) Pricing Process c) Selecting the Pricing Objective d) Demand Analysis e) Product Mix Pricing f) How Gillette prices its products g) Gillette Price Chart 9) Place Strategy «««««««««««««««««««««« 59 a) Distribution Network 4 b) Gillette Distribution Network 10) Promotion Strategy «««««««««««««««««««« 63 a) Gillette strategy 11)Market Strategy ««««««««««««««««««««« 68 a) The BCG Matrix b) The Gillette Razors BCG Matrix .

The first step up the performance/price ladder for these consumers is to advance to Gillette twin-blade shaving systems or disposable razors. the movement may be entirely within the systems category.12)Consumer Analysis «««««««««««««««««««« 74 13)Distribution Analysis ««««««««««««««««««« 81 14)Recommendations ««««««««««««««««««««. In more developed markets.com 5 OBJECTIVES yTo study the shaving razors market scenario in India. yTo suggest ways to convert double-edge users to Gillette twin-blade users vis-à-vis Presto and Vector Plus. yTo find ways to upgrade existing Gillette users up the value chain.´ www.gillette. as consumers¶ trade up from twinblade to triple-blade shaving. the great majority of male Gillette shavers in developing markets use double-edge blades. 82 15) Bibliography Appendix «««««««««««««««««««« 91 16)Questionnaires 17)Company Checklist «««««««««««««««««««« 92 18)Company Contacts «««««««««««««««««««« 95 ³In the grooming business. 6 COMPANY .

toiletries and cosmetics. In 1948. servicemen had been issued 12. Gillette used its global reach to put Oral B in markets where entry was difficult on its own. Gillette produced its first razor. buying Waterman. acquiring Braun AG. In 1996. In 1903. global perspective. when it acquired Oral B laboratories. the world's leading manufacturer of alkaline batteries. Gillette has gained. acquiring Duracell International. a leading toothbrush manufacturer in the US. introducing the Brushless Shaving Cream in 1936 and the Kumpakt electric razor in 1938. Two years later. The company introduced a foamy shaving cream in 1953. Gillette diversified yet again. In 1950. the War Production Board ordered Gillette to dedicate its entire razor production and most of the blade production to the defence forces. By the mid 1980s. acquiring the Papermate Pen Company. Gillette made an important move in 1984. dollar profits in many overseas markets have shrunk considerably.5 billion blades. Gillette showed its strong commitment to international expansion by establishing a sales office in London and a manufacturing site in Paris. The company¶s heavy investment of around $1 billion in the triple blade Mach-3 .´ COMPANY HISTORY: 7 King C Gillette established The Gillette Company (Gillette) in 1901 in Boston. World War I came as a boon to Gillette. Gillette was operating five major businesses . a German manufacturer of small electrical appliances.blades and razors. based in France. Gillette continued with its acquisition moves. Gillette¶s profitability has been under pressure. In 1967. Due to the Asian currency crisis. stationery products.5 million safety razors and 36 million blades to the US armed forces. as early as in 1905. In 1993. In the late 1990s. Braun appliances and Oral-B dental products.5 million razors and more than 1. Gillette again diversified.PROFILE ³In the more than 100 years since the Company was founded. Gillette began television advertising in a big way. which supplied 3. Gillette strengthened its position in the writing instruments business by acquiring the Parker Pen Company (Parker). It also expanded its product line. held and strengthened leadership positions through the Company's strategy of managing its business with a long-term. Gillette found itself in a comfortable situation where demand outstripped supply. During World War II in 1942. it obtained a patent on the razor. Gillette moved into another new business. By the end of the war. Gillette acquired Toni Company which supplied personal grooming kits for women. Gillette continued its efforts to expand market share both at home and abroad. a leading manufacturer of premium writing instruments. During the 1920s and 1930s. A year later.

000 outlets all over India The company's decisions over the past one year ² to divest its electric gadget and home appliances business under the Braun brand name. ISPL and Wilkinson Sword. a company it promoted jointly with the local Poddar Group. in slow growth mode all these years.. Gillette missed most of its quarterly sales and profit targets. too have been put on the backburner. GILLETTE: THE INDIA CHAPTER Gillette entered India in 1984. the company has indicated that it will increase the capacity of its double edge blade unit to 700 million blades from the current 340 million blades and disposable blades from 105 million to 140 million. Gillette expanded its base in India and also started operations in Thailand and Egypt. During 1998 and 1999. with a 24% stake in Indian Shaving Products Ltd (ISPL).. Gillette began to make rapid inroads into Asian markets.8 has also had its impact.. Later. A joint venture became operational in China in 1983. The Global Business Management Group has worldwide responsibility for R&D.jointly promoted by House of Poddar Enterprises(HOPE) and Gillette . Sheen Dental Products Ltd. USA 1986 Gillette takes over Sharpedge Ltd 1987 New twin blade shaving system called 7 O'Clock Ejtek P II introduced. Female shaving products. manufacturing and strategic marketing of all products. Singapore and Taiwan. Gillette consists of three operating groups: Global Business Management. In addition. The company has two arms in India. 1989 Diversification into shaving preparations and launching of premium quality 7 O'Clock Ejtek shaving brush 1990 Launch of two new products namely 7 O'Clock Ejtek P II shaving system with a metal spine and a shave cream in three variants 1991 Sabre Pens Ltd. By 1982. Year Event 9 1984 Company Incorporated in Rajasthan . are aimed at focusing better on its core business ² shaving products.. Gillette's distribution network currently controls 2000 distributors and 400. and its low-end battery business under Geep. GILLETTE IN ASIA In the 1980s. and Vanity Cosmetic Ltd. New Zealand and the Philippines. Currently. are wholly owned subsidiaries of the . it increased its stake to 51%. Commercial operations (Western Hemisphere) looks after trade marketing and sales for all the products in North America and South America. Recently. Commercial Operations (Western Hemisphere) and Commercial Operations (Eastern Hemisphere). the company had established small marketing operations in Hong Kong. Gillette had set up subsidiaries in Japan. Commercial Operations (Eastern Hemisphere) has similar responsibilities for other countries in the world. Klosershav Products Ltd. Gillette has set up a manufacturing facility at Bhiwadi in Rajasthan. which it acquired in 1995.

three core Values define the way we operate: . 'Cross Action Power' Gillette ropes in Beckham to promote its products Gillette India announces launch of new generation triple blade shaving 10 system Mach3Turbo GILLETTE: MISSION AND VALUES OUR VISION: The Gillette Company¶s Vision is to build Total Brand Value by innovating to deliver consumer value and customer leadership faster. The Company also launched under a distribution arrangement tooth brushes under the well known international brand name Oral-B. ORGANIZATIONAL EXCELLENCE: Attaining our Vision requires superior and continually improving performance in every area and at every level of the organization. 1997 Indian Shaving Products Ltd (ISPL) and Duracell India Pvt Ltd are merging their respective Ltd and marketing networks. the three-blade razor 2000 Company approves amalgamation of Duracell (India) Pvt. To support this Quest. better and more completely than our competition. CORE VALUES: As we work toward our Vision. Ltd.Company 1993 Commence of launch of Gillette Shaving products in India with the launch of Gillette Presto Readyshaver 1995 Launch of another Readyshaver under the Brand name of 7 O'Clock Ready II. 1996 Launch of "Gillette Sensor & Sensor Excel" shaving systems Company introduces ³Gillette Aerosol" shaving cream. with the company 2003 Gillette India awards its creative account to Ogilvy and Mather following a global re-alignment of ad agencies Gillette identifies the double edged blade segment as its growth market driver. Our performance will be guided by a clear and concise strategic statement for each business unit and by an ongoing Quest for Excellence within all operational and staff functions. Indian Shaving Products Ltd will be distributing the Duracell range of batteries through its own sales and distribution network 1998 Company enters the ladies personal care segment with the launch of the Gillette Sensor Excel for women 1999 Launch of Gillette "Mach-III". This Vision is supported by two fundamental principles that provide the foundation for all of our activities: Organizational Excellence and Core Values. This Quest for Excellence requires hiring. and Wilkinson Sword India Ltd. developing and retaining a diverse workforce of the highest caliber. and implements processes to achieve. 2004 Gillette India Ltd launches battery-powered toothbrush. each function employs metrics to define. world-class status.

GILLETTE: THE PRODUCT BASKET Alkaline Batteries Duracell Blades & Razors Gillette. You may have developed a unique business idea. Mach 3. Fair practice is the hallmark of the Company. and maximizing business opportunities. COLLABORATION 11 We work closely together as one global team to improve the way we do business every day. How can you be sure the odds are with you as you pursue new directions? Ultimately. you've probably thought about branching out with new 14 product lines. all of marketing is based on the idea that you must thoroughly know the environment in which your business operates in order to successfully promote and sell your product or service. yYour idea must fulfill a need for your buyers and yMust do so in a way that's somehow superior to the competition. Good News. We communicate openly and establish clear accountability for making decisions. or additional locations. Oral Care Oral-B Small appliances Braun Stationery Products Parker. Dryline Toiletries Gillette. Agility. Trac. Sensor. identifying issues and solutions. Watermen. Atra. customers and the community. side businesses. Custom plus. Satin Care 12 MARKET ENVIRONMENT 13 Why Study Market Environment? Conceptually. Soft & Dri. We strive to consistently exceed the expectations of both external and internal customers INTEGRITY Mutual respect and ethical behavior are the basis for our relationships with colleagues. Liquid Paper. Right Guard.ACHIEVMENT We are dedicated to the highest standards of achievement in all areas of our business. Paper Mate. however . but why do you believe your idea will be successful? Is it based upon discussion of the idea or presentation of a prototype product or plan to friends and associates? If your business has been operating for a while. Dry Idea.

The Indian company. TOOLS: As stated above. India is the largest blade market in the world in volume. Target markets and Positioning) yFuture market growth (BCG Matrix) The Environment in India: Gillette's experience in India indicates the type of challenges that the company faces in emerging markets. let us now see the tools that help a company. The Indian Blade Market: 15 The Indian blade market consists of four broad segments 1) Flat blades 2) Disposables 3) Twin blades 4) Triple blades. is the second largest blade maker in the world after Gillette. which it acquired in 1995. The company has two arms in India. Porter¶s model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. this company has enjoyed a monopoly and indeed been accused of many restrictive trade practices. . though not in value terms. it increased its stake to 51 per cent. Later. a company it promoted jointly with the local Poddar Group. and also us in understanding the environment. Porter in his book ³Competitive Strategy: Techniques for Analyzing Industries and Competitors´ in 1980. If you want to be sure that your idea will do these two crucial things.you define it. Gillette entered India in 1984. Gillette's distribution network currently controls 2000 distributors and 400. you need to know as much as you can about the following: yThe marketing environment (Porters Five Force Model) yYour competitors (Competitors Analysis) yMarketing strategy (Perceptual Map) yYour target buyers (Segmentation. a very important tool of studying the environment in any industry is the Porters Five Force Model explained below: MICHAEL. For long. in general. ISPL and Wilkinson Sword.000 outlets all over India. Introduction: 16 The model of the Five Competitive Forces was developed by Michael E. Gillette has set up a manufacturing facility at Bhiwadi in Rajasthan. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. competitive strategy should base on and understanding of industry structures and . With this understanding of the basic classification of the Indian blade market. with a 24 per cent stake in Indian Shaving Products Ltd (ISPL).E. Especially. Harbans Lal Malhotra & Sons (Malhotras). PORTERS 5 FORCE MODEL 1.

The only substitutes in terms of the product per se are in fact very poor on the technology and quality fronts. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. yThe switching costs from one supplier to another are high. the buying industry often faces a high pressure on margins from their suppliers. THE GILLETTE CASE: It is indeed enjoying greater supplier power due to its sole presence in the organized. This threat is especially high when yThe buying industry has a higher profitability than the supplying industry. 5) The bargaining power of suppliers 17 Bargaining Power of Suppliers The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. yThere are no substitutes for the particular input. yThe suppliers customers are fragmented. reluctance to accept new releases of products). For example: there are several twin blade razors in the market but none would match the superior technology of a sensor excel. The relationship to powerful suppliers can potentially reduce strategic options for the organization. premium technology shaving razors market in India.the way they change.g. Also there are no close substitutes to their razors. yThe buying industry has low barriers to entry. 3) Pressure from substitute products. Porter¶s model supports analysis of the driving forces in an industry. Supplier bargaining power is likely to be high when: yThe market is dominated by a few large suppliers rather than a fragmented source of supply. 4) The bargaining power of buyers. y Forward integration provides economies of scale for the supplier. Based on the information derived from the Five Forces Analysis. Porter has identified five competitive forces that shape every industry and every market. or the triple blade offering by Super-Max 3 is in no . yThe buying industry hinders the supplying industry in their development (e. 2. 18 yThere is the possibility of the supplier integrating forwards in order to obtain higher prices and margins. The Five Competitive Forces: The Five Competitive Forces are typically described as follows: 1) The threat of entry by new competitors. so their bargaining power is low. management can decide how to influence or to exploit particular characteristics of their industry. 2) The intensity of rivalry among existing competitors. In such situations.

the easier it is for other companies to enter this industry.comparison with the Mach 3. ySwitching to an alternative product is relatively simple and is not related to high costs 19 yCustomers have low margins and are price-sensitive. yThe product is undifferentiated and can be replaces by substitutes. qualified expert staff yAccess to raw materials is controlled by existing players. prices. The threat of new entries will depend on the extent to which there are barriers to entry. THE GILLETTE CASE: The buyers as a result are not very powerful as there are no close substitutes. market shares. yThe product is not of strategic importance for the customer. However. the only thing the customer can do is to revert to lower versions by compromising on technology or switch over to barber shaving. yBrand loyalty of customers yProtected intellectual property like patents. So in reality there are no potential threats. and customers of Mach 3 razors (executive class which comprises a sufficient market) are not price sensitive. yThe customer knows about the production costs of the product yThere is the possibility for the customer integrating backwards. the bargaining power of customers determines how much customers can impose pressure on margins and volumes. yCost advantages of existing players due to experience curve effects of operation with fully depreciated assets. there is a concentration of buyers. it is difficult for the consumer to leave it as such and move on to another razor). Threat of New Entrants: The competition in an industry will be the higher. yHigh initial investments and fixed costs. yCustomers could produce the product themselves. .g. new entrants could change major determinants of the market environment (e. customer loyalty) at any time.g. switching to an alternate product is not easy (as one cartridge does not fit another razor. There is always a latent pressure for reaction and adjustment for existing players in this industry. In such a situation. Bargaining Power of Customers: Similarly. Customers bargaining power is likely to be high when yThey buy large volumes. yThe supplying industry comprises a large number of small operators yThe supplying industry operates with high fixed costs. and also because once an investment is made on a premium Gillette razor. e. 20 yScarcity of important resources. These are typically yEconomies of scale (minimum size requirements for profitable operations). licenses etc. they buy in small numbers.

This category also relates to complementary products. e.4 Threat of Substitutes: A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose.g. hence. there is news that the American Safety Razor would be soon entering the Indian market. 21 THE GILLETTE CASE: As of date there are no close substitutes to any of the Gillette razors. yCurrent trends. and hence. THE GILLETTE CASE: There is virtually no competition in most of the segments except in the flat blades . yBarriers for exit are high (e. yHigh switching costs for customers yLegislation and government action THE GILLETTE CASE: The Indian shaving razor market is completely dominated by Gillette. 2. Competitive Rivalry between Existing Players: This force describes the intensity of competition between existing players (companies) in an industry. on profitability for every single company in the industry. They could potentially attract a significant proportion of market volume and hence reduce the potential sales volume for existing players. expensive and highly specialized equipment). Any new entrants should very carefully launch themselves because they would be directly pitting against a monopolist kind of market giant. high initial investments and above all the retaliation by Gillette which could be anything. ySwitching costs for customers.yDistribution channels are controlled by existing players. yThe relative price for performance of substitutes. High competitive pressure results in pressure on prices. Similarly to the threat of new entrants. yClose customer relationships. Competition between existing players is likely to be high when yThere are many players of about the same size. the treat of substitutes is determined by factors like yBrand loyalty of customers. there is much price competition yLow market growth rates (growth of a particular company is possible only at the expense of a competitor). margins.g. yPlayers have similar strategies yThere is not much differentiation between players and their products. from long-term service contracts. We can only wait and watch what would happen then. yExisting players have close customer relations. The only close substitute could be the American Safety Razor entering the Indian market soon. But then again that would depend on the marketing strategies of the company. However. Also the barriers to entry are not many except minimum size requirements for economies of scale.

like Gillette Diamond and Gillette Platinum have been priced four to five times higher than the offerings of competitors Gillette's experience in India indicates the type of challenges that the company faces in emerging markets. Gillette's new launches in the flat blades segment. 22 THE COMPETITORS In the flat blade segment. low income segment. . Gillette has been the clear leader in terms of new product introduction and branding. The Gillette brand has a high recall and is associated with quality. For long. precision and technology. there could be a clash of two titans in the near future with the entry of another American giant into the much desired Indian market. Gillette has undoubtedly been a market leader with effectively no competition at all. With the company already having a significant presence in the North American and Western European markets. which is also the cheapest. which consists predominantly of flat blades. this company has enjoyed a monopoly and indeed been accused of many restrictive trade practices However in the twin and triple blade segment. Twin Blade Market in India (Rs 168 crore) 24 Source: AC Nielson-ORG MARG Survey Tomorrow¶s Threat: As seen below from the news archives. The Indian company. both in volume as well as value terms. is betting on India as a key growth market for the company. indiainfoline. the $240-million global shaving products major. Overall Blade Market ± In Terms Of Value (Rs 600 crore) 23 Source: AC Nielson-ORG MARG Survey Another issue which Gillette has to immediately address is penetrating the huge barbers' market. In the mid and high-end segments. India is the largest blade market in the world in volume. Harbans Lal Malhotra & Sons (Malhotra).segment.com ASRC eager to drive growth from Indian market New Delhi: American Safety Razor Company (ASRC). From time to time there have been rumours about the possibility of Gillette buying out the Malhotras. Malhotra dominates the market. traditional double edged users ( laggards). it is now making inroads into the Asian one and has identified India as a focus market. is the second largest blade maker in the world after Gillette. though not in value terms. and technology-illiterates.

indiatimes.However. ASRC will not follow the same distribution strategy as it does in the Western markets. it wants to focus on disposables and shaving systems priced 15-25% cheaper than that of Gillette At a later stage it also plans to bring in double edge razor blades with a ³superior technology´ to take on House of Malhotra that virtually controls that segment 26 ANALYSING MARKETING STRATEGIES 27 . 25 0 10 20 30 40 50 60 70 80 GILLETTE OTHERS supplying to retail majors such as Carrefour and Wal Mart. is planning to spread its wings in India through a distribution tie-up with the Salora group. It also has its own brands. Interestingly. however. http://economictimes. with the most popular one being Personna. The reason lies in the fact that the consumption of blades per person in India is higher than in China. RP Electronics and rolled out blades and razors under the Glide brand. the company has inked a distribution tie-up with local firm. but at the moment. Though ASRC has not set any time-bound volume targets for its products in India. As disposable incomes in the country rise. it expects more people to upgrade from double-edged blades to disposable. with Indian males being more hirsute. Also. the American Safety Razor (ASRCL). ASRC is hopeful that its value for money proposition (good quality and lesser prices) will help it connect with the Indian masses. the company is optimistic about the growth being seen in the market. In India. despite the market being captured by the dominant leader Gillette. Glide products are priced from Rs 10 (for the disposable) to Rs 110 (for the systems).com/articleshow/575888. the market for shaving products in India holds more potential than the Chinese one.cms American Safety Razor to enter local markets The world's third largest shaving products maker. so far dominated by the House of Malhotras and Gillette. The Indian shaving products market. The company is a leading provider of in-store brands globally. will see a third large player for the first time The $279m company has a large repertoire.

A perceptual map summarizes the image of several products on many different attributes in one graph. there are some tools or concepts in this regard developed by the marketing experts and followed by hundreds of companies the world over. marketing budgets. A proactive supplier will always consider how to maintain initiative within the market. Market strategy encompasses customer perception of the relationship between price and quality. The major tools of studying the marketing strategies are: 1) Perceptual Map 2) The BCG Matrix Now let us see how a perceptual map is useful (the other two strategies are explained at a later stage). visual merchandising. THE CUSTOMER MATRIX: The 'Customer Matrix' example illustrated below was developed by Cliff Bowman. Here Bowman sites the work of Porter. providing a very useful overview of customer's perceptions of the market. pricing and terms of sale. and . wholesale) and what specific customer groups will be targeted.e. the alternative courses of action are: yTo achieve the status of lowest cost producer and offer lower prices than the competition . Market strategy also includes the distribution channels for the product. If the supplier determines that his solution is 'average' when compared to the competition. inventory selection and management. A useful starting point is to consider competitive position as a perceptual map in which 'Perceived Price' is plotted against 'Perceived Use Value'. Whilst it has been criticized for oversimplifying what can be sometimes be complex commercial problems. move West.i.A BRIEF OVERVIEW: DEFINITION: Market strategy is defined as an action plan for influencing customer choices and obtaining a market share. promotion and advertising plan. the two-dimensional Perceptual Map has become a particularly useful vehicle for management to draw attention to an emerging market opportunity. Professor of Business Strategy at Cranfield School of Management. customer relations and an evaluation of the marketing strategy. TOOLS: Since a marketing strategy is the heart of any business entity. THE PERCEPTUAL MAP 28 Perceptual Mapping is a useful statistical technique that provides an overview of how customers perceive the different products in a market including each product's relative strengths and weaknesses. and how wide the area of distribution will be. what will be sold. a new strategic direction. or a changing market condition. WHY IS IT USED? The marketing strategy provides information on what the market will be (retail. Market strategy should entice customers to buy the product or service. where it will be sold.

Bowman then goes on to explore the interactive nature of these axes. These common characteristics allow developing a standardized marketing mix for all customers in a particular segment. but the company must be nimble in order to maintain its competitive position. by taking perceived price and perceived value as the two axes: RAZORS PRICE QUALITY GILLETTE: Mach 3 high high Sensor excel high neutral Vector Plus low high Presto high high COMPETITORS: Gallant low neutral Super max 3 high low Laser low low 31 THE GILLETTE RAZORS ± PERCEPTUAL MAP 32 VECTOR PLUS SENSOR EXCEL PRESTO MACH 3 MARKET SEGMENTATION DEFINITION: Market segmentation is dividing a larger market into submarkets based upon different needs or product preferences.may offer the company the best strategy to tackle the market and offer global potential.sequentially adding Perceived Use Value and cutting price . Here Bowman is at pains to point out that market segmentation plays a critical role in determining what customers do actually value and that any advantage must be sustainable. let us now see how the Gillette razors appear on the map: Gillette razors Vs Competitors: A Perceptual Map: 30 And now let us represent the perceptions of Gillette razors using the customer matrix. For example an increased share obtained by adding value can result (through economies of scale) in lowest cost producer status. The move North West . .emphasises the need for all organisations to become low cost (if not lowest cost) producers so that at the very least market fluctuations can be accommodated. 29 THE GILLETTE CASE: With this understanding of what a perceptual map is. yTo move North by adding Perceived Use Value.

THE GILLETTE CASE: A simple classification of market segments on the basis of the above would be as . The basic rule is to focus on a limited number of important variables. yDistinguishing ability: market segments have to be diverse enough to show different reactions to different marketing mixes. the following criteria should be kept in mind: yFeasibility: Having in place a marketing program for each segment and drawing advantages from that. The traditional variables for segmentation are as follows: Geographic: yLand or region yRural or metropolitan area Demographic: 34 yAge. ethnical group Psychographic: ySocial status yLifestyle-type yPersonal type Behavioral: yIntensity of product use yBrand loyalty yUser behaviors Marketers have to choose those variables that are relevant for segmenting the market for a particular product. marital status yIncome. yMeasurability: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. yRelevance: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.NEED FOR SEGMENTATION: Segmentation needs to be undertaken for the following reasons: yBetter serving customers needs and wants yHigher Profits yOpportunities for Growth ySustainable customer relationships in all phases of customer life cycle yTargeted communication yStimulating Innovation yStimulating Innovation yHigher Market Shares 33 For segmentation to be effective. sex. occupation. nationality. yAccessibility: The segment has to be accessible and servable for the organization. education yReligion.

appearance conscious High sociability. active Gillette Price Consciousness Low income. nonregulars Hypochondriac conservative . TYPES OF TARGETING: Single Segment Concentration M1 M2 M3 BENEFIT SEGMENTS DEMOGRAPHICS BEHAVIOURISTICS PSYCHOGRAPHICS FAVOURED BRANDS Quality of shave Executives. midlevel executives First time users.follows: 35 TARGET MARKETS DEFINITION: Once market has been divided into segments. working men Regular and heavy users High autonomy Value oriented Gillette Convenience Employees Regular and heavy users Hedonistic High self-involvement Gillette Technology/ fashion Teens/youth. a process of identifying market segment opportunities (basis the attractiveness of the segment and the company¶s resources and objectives) takes place. unaware of technology Laggards. illiterates.

Gillette follows a strategy known as Geoclustering which involves combining several variables in order to define better ±defined target groups. Primarily. occupation. income. Gillette has identified gender. This is thus a multi attribute segmentation technique. The Selective specialization pattern would apply to Gillette as explained: Low High Gillette defines M1 M2 M3 P1 MACH 3 TURBO P2 MACH 3 P3 SENSOR EXCEL P4 VECTOR PLUS 38 M1 comprising of those group of male customers who are either in their twenties or early thirties. age. have a high disposable income (if student.Local players 36 X Selective Specialization M1 M2 M3 XX X Product Specialization M1 M2 M3 XXX Market Specialization M1 M2 M3 X X X Full Market coverage M1 M2 M3 XXX XXX XXX 37 THE GILLETTE CASE: The approach of Gillette to market segmentation is in line with the above mentioned. then those who spend . generation (demographic variables) and lifestyles (psycho graphic variable) as a cluster in an attempt to more precisely define its market segments.

THE GILLETTE CASE Gillette has also followed a similar strategy in the India market. PI Product 1 P2 Product 2 P3 Product 3 Segment-by-Segment Invasion Plans The core philosophy behind this concept is to enter the market segment by segment without revealing one¶s total expansion plans so that competitors are caught unawares as to the segment into which the firm will move in next. M3 on the other hand would comprise of such male customers who are in their late thirties or above. and are not very conscious of their looks or the status value of the products they buy. The advertiser should present a simplified message . belong to the current generation and maintain lifestyles that have a bearing on their buying behaviour. the concept really is about positioning that product in the mind of the customer in an over communicated environment.comfortably). M2 would comprise of customers who lie between these two customer groups. the premium 7 O'Clock Ejtek Super Platinum and the stainless brand 7 O'Clock Ejtek Super Stainless 1993 (C2): Company commences the launch of Gillette Shaving products in India with the launch of Gillette Presto Readyshaver. ³While positioning begins with the product. 1995 (C3): Company launches another Readyshaver under the Brand name of 7 O'Clock Ready II 1996 (C4): The Company successfully launches "Gillette Sensor & Sensor Excell" shaving systems 1998 (C5): Company announces launch of new generation triple blade shaving system Mach3Turbo POSITIONING WHY POSITIONING? In today¶s world of strategy convergence (undifferentiated strategies). do not have a very high disposable income. pursuing a meaningful and relevant positioning & differentiation has become imperative for every company in order to give the customer a reason to demand their products. Conventional Shaving Ready Shaving Premium Shaving Triple Blade C5 Twin Blade C2 C4 Double Edge / Flat C1 C3 39 Blades THE SEQUENCE OF EVENTS: 1986 (C1): Company manufactures two types of blades. are salaried. Jack trout says.

the consumers may feel that the company is insecure in its position if yIt must reinforce this by saying so yCan adopt multi-brand strategy i. somewhere in the middle. create a customer focused value proposition. the most successful entrepreneurs learn to transform their passion into position. a competitor will do it for you. unchanging position in the minds of the consumer yMust be willing to embrace change rather than resist it.e. THE GILLETTE CASE: Gillette as a market leader has been careful not to boast about its position. Positioning. because each brand occupies a single. as Philip Kotler defines. Also it has always introduced new brands to target different market segments (presto for lower end. yQuality.) instead of bringing about changes in any one particular razor to maintain the distinct image of each of its razor in the mind of the customer. Positioning is a Perceptual Location. 41 THE ELEMENTS OF POSITIONING: The primary elements of positioning are: yPricing. the latest being the introduction of mach3 turbo in India and mach 3---. yIf the firm does so. Is your product a luxury item.e. is the act of designing the company¶s offering and image to occupy a distinctive place in the mind of the target market i. cheap. Ries & trout call this Single Position Strategy. In the words of Jan Welborn Nicholas. Effective positioning puts you first in line in the minds of potential customers.abroad 40 According to Al Ries and Jack Trout. introduce multiple brands rather than changing existing ones that hold leadership positions. ³The Fathers of Positioning´ a Market Leader should: yNot boast about being number one. But is your . That's why it's so important for entrepreneurs to transform their passion into a market position. It's where your product or service fits into the marketplace. Total quality is a much used and abused phrase. Your position in the market place evolves from the defining characteristics of your product.and make that message consistent with what the consumer already believes by focusing on the perceptions of the consumer rather than on the reality of the product. It is often easier and cheaper to introduce a new brand rather than change the positioning of an existing brand. mach3 for upper end etc. If you don't define your product or service. cheap. or cheap. a cogent reason why the target market should buy the product. The best way to get into the mind of the consumer is to b the first Gillette has always been on its toes when it comes to introducing latest technology products and has thus reaped the benefits of being the first entrant.

Do you offer the added value of customer service and support? Is your product customized and personalized? yDistribution.all of which are imported from the US (untouched by hand). THE GILLETTE CASE: For Gillette their strength lies in the superior quality of their razors . What's the one thing you do best? What's unique about your product or service? Identify your strongest strength and use it to position your product. THE GILLETTE CASE: In our case Gillette has been able to cash on the µsata ± sat¶ philosophy or in other words a razor which gives u the smoothest shave in least possible time without any compromise on their quality. Unquestionable quality of Gillette products has been the most important factor in making it a market leader. can cash in two benefits at the same time. THE UNIQUE SELLING PROPOSITION: According to Rosser Reeves every company should develop a ³Unique Selling Proposition (USP) or promote only one central benefit of the product which makes communication to target market easier. and return policies? yService.product well produced? What controls are in place to assure consistency? Do you back your quality claim with customer-friendly guarantees.e. Positioning is your competitive strategy. Make sure it's delivering the message you intend. But nowadays marketers feel that double positioning may be more distinctive i. How do customers obtain your product? The channel or distribution is part of positioning. Packaging makes a strong statement. employees are clearer about what counts and it is easier to align the whole organization with a central positioning. warranties.except for presto and they have used this strength wisely to position their product over the years. yPackaging. POSITIONING ERRORS: Kotler points out that a company must avoid four major positioning errors: 1) Under positionin g : buyers only have a vague idea of the brand . the co. it is evident that Gillette has acquired the status of the first two disciplines but needs to work on achieving a minimum performance level in the third as well. VALUE DISCIPLINES: Micheal Treacy and Fred Wiersema proposed a positioning frame work called ³Value Disciplines´ Within its industry a firm could aspire to be: 42 yProduct leader ± advancing on technological frontier yOperationally excellent firm ± highly reliable performance yCustomer intimate firm ± high responsiveness in meeting individual customer needs THE GILLETTE CASE: Through our research and analysis.

g. Gillette has traditionally been positioned as a premium. and sugar. high quality product. to include people. to include physical evidence (such as uniforms. butter. Also known as the 'Four Ps'.size/number of years of existence b) Benefit positioning: product is positioned as a leader in certain benefit c) Use/application positioning: position the product as best for some use/application d) User positioning: position the product as best for some user group e) Competitor positioning: the prod claims to b better in some way than a named competitor f) Product category positioning: product is positioned as leader in certain product category g) Quality/price positioning: product is positioned as offering the best value THE GILLETTE CASE: Here Gillette has traditionally focused on yApplication positioning-best for the finest shave yQuality positioning. The offer you make to you customer . facilities. you can alter the final cake by altering the amounts of mix elements contained in it. Think about another common mix .Wilkinson & Wilman ( gradually eliminating competition) it has carefully distanced itself from these lower segment brands to avoid confusion among the buyers about Gillette¶s image. Borden in his article 'The Concept of the Marketing Mix' in 1965. The 'marketing mix' is probably the most famous phrase in marketing. a) Attribute positioning: positioning itself on a particular attributes. and promotion. However. Some commentators will increase the mix to the 'five Ps'. So for a sweet cake add more sugar! It is the same with the marketing mix. or livery) and process (i.e. a visit the Disney World). the marketing mix elements are price. flour. the whole customer experience e.2) Over positioning : buyers have too narrow image of the brand 43 3) Confused positionin g : buyers have a confused image of the brand (company makes too many claims about the product or changes brand positioning frequently) 4) Doubtful positioning : buyers do not believe the claims the brand makes. All cakes contain eggs. Others will increase the mix to 'Seven Ps'. product.a cake mix. The elements are the marketing 'tactics'. THE GILLETTE CASE: With respect to avoiding confused positioning Gillette has been successful. place.unquestionable quality (imported razors) THE MARKETING MIX 44 WHAT IS A MARKETING MIX? The term was coined by Neil H. The concept is simple. Thus even though the company has acquired 7¶o clock . POSITIONING POSSIBILITIES: Also a company can choose from different positioning possibilities.

marketers are limited to working with only half their tool kit. A separate marketing mix is usually crafted for each product offering.can be altered by varying the mix elements. Mix coherency refers to how well the components of the mix blend together. Think of telephone insurance and the internet! A bit of lateral thinking here might reap rewards for your business. So for a high profile brand increase the focus on promotion and desensitize the weight given to price. With this simple understanding of what a marketing mix means and to what extent it can in fact affect a company¶s sustenance in an industry. Therefore in the short term. Price: Decide on a pricing strategy . This limitation underscores the importance of long term strategic planning. 47 PRODUCT STRATEGY 48 . let us now see how each of these four factors influence the company and what the respective strategies are that the Gillette company is taking. Essentials of marketing mix: Product: Defines the characteristics of your product or service that meets the needs of your customers. Promotion: This includes all the weapons in the marketing armoury advertising. you must realise that this is a conscious decision and forms part of the pricing strategy. all four of the mix variables can be changed. Public Relations. In the long term. sales promotions. Place (or route of distribution): Some of the revolutions in marketing have come about by changing this P.do not let it just happen! Even if you decide not to charge for a service (a loss leader). etc. marketers must always be thinking of who their target market are. When constructing the mix. Now these can be viewed in a graphical representation: 45 46 A marketing mix is a combining of these four variables in a way that will meet or exceed organizational objectives. A strategy of selling expensive luxury products in discount stores has poor coherency between distribution and product offering. but in the short term it is difficult to modify the product or the distribution channel. selling.

The Three Level Classifications: Augmented Product Core Produ ct Actual Product THE GILLETTE CASE: yThe core product would be the quality of shave yThe actual product would comprise of the razor designed so as to give a comfortable grip and packed in an appealing manner. acquisition.THE PRODUCT A product is anything that can be offered to a market for attention. with each level adding more value to the product. use or consumption. yThe augmented product would include the superior technology that Gillette shaving products are known for and the reliability that comes with the Gillette brand name. At the heart of it lies the core product. Each product can be seen through product levels. Kotler had proposed three product levels. The Five Level Classifications: 49 Technology Brand Packaging Design Core Benefit Kotler has now revised this to a five product level. next the basic product followed by the expected product and augmented product. The primary purpose of a product is to satisfy a want or a need. The potential product would lie in the outermost circle. well packed yExpected Product: Blades that do not give cuts or rashes on skin yAugmented Product: Razor with lubrastrip indicating when the blade . Potential Product Augmented Product Expected Product Basic Product Core Product THE GILLETTE CASE: yCore Product: Quality of Shave yBasic Product: Razor with comfortable grip. Initially.

yPotential Product: product customization could be one new development. The consumer makes the purchase decision only after gathering sufficient product information. These are available at multiple purchase locations. yShopping Products yThese are bought less frequently. They are known for their unique characteristics and are available at select locations. etc. 3) Industrial Goods Classification These are classified in terms of how they enter the production process and their relative costliness. yBuying is on a regular basis . The potential buyer typically compares the product with that of competition on the basis of price. 51 ySupplied & Business Services : Short lasting goods and services that facilitate developing or managing the finished product. These goods require advertising and personal selling effort. style and quality before making the purchase decision. yUnsought Goods yThese include goods that the consumers do not want to normally think about. yCapital Goods : long lasting goods that facilitate developing the finished product. the anti-clogging push-clean technology. 50 PRODUCT CLASSIFICATION Products may be classified on the following basis: 1) Durability and Tangibility yDurable Goods yNon durable Goods yServices 2) Consumer Goods Classification yConvenience Goods: yThese include those goods which are purchased frequently. ySpecialty Goods ySuch goods require a special purchasing effort. immediately and with minimum effort.needs to be replaced. yMaterial & parts : goods that enter the manufacturer¶s product completely. The Gillette Case Gillette shaving products meet the attributes of convenience goods as yThey are purchased frequently and with the minimum of effort.

yWith rising incomes. Packaging and labelling therefore is an important element and can not be ignored while formulating the product strategy. their comfort levels would be influenced by the labelling. while Gillette¶s consumers do not base their buying decision on the basis of the packaging. This container may include up to three levels of material: yPrimary Package : Tetra pack. LABELLING: Once the packaging decision is taken. for a product like Gillette shaving razors. 52 PACKAGING AND LABELLING WHAT IS PACKAGING? Packaging comprises of all activities of designing and producing the container for the product. bottle. DECISIONS INVOLVED: The following decisions are involved in the process of coming out with an effective package 53 1) Identifying what the primary purpose of the package is. describe and promote the product. it does not play a very significant role. labeling is done to identify. 54 . it needs to go through engineering tests to ensure the effectiveness/robustness of the package under normal conditions. This is followed by testing it at the dealer/intermediary and consumer level. Finally. The Gillette Case: However. like Gillette razors. etc ySecondary Package : cardboard box. Further within this category. Gillette shaving products can be further classified as Staple Goods. which is in line with the product ? 3) Amount of text to be written 4) Size. etc yShipping Package : Cartons.yThere are multiple purchase locations for the product. consumers increasingly are willing to pay a little more for the appearance and prestige of well ± designed packages. Therefore. A customer who buys a Gillette shaving product does not consider the package an important enough factor which would influence his buying behaviour. Labeling does have some significance for a product associated primarily with quality. sachet. shape and materials to be used. etc WHY PACKAGING? Packaging has been getting increasing focus as a marketing tool for the following reasons: yThey promote Company and /or Brand Image yIt is an opportunity to incorporate innovative features which can bring added convenience to the consumer and in turn higher profits to the producer. 2) Choosing the right colour.

APPLYING R & D . and readily replaced. William Emery Nickerson (an MIT-trained inventor). low shaving frequency. It took Gillette six years to find an engineer. Moreover. VECTOR PLUS. who assured him his idea was impossible. who could produce the blade Gillette wanted. Following are some of the features that the company has added to its products: yThe lubrastrip-± a blue stripe that indicates when to change over to a new cartridge yThe push-clean technology-prevents clogging of hair in between the blades by using the twin instruments of spacer and button. now living in Boston. THE DISPOSABLE: One morning in 1895.Wall Street journal. The blades are the only ones with two cutting edges. based on a simple yet essential invention: the safety razor with disposable blades. which doubles the amount of shaving which can be done by a single blade. tough beard etc. and also the customer complained of hair . THE TWIN BLADE SHAVING: Shaving with the double edged blades has its own drawbacks ± it requires men to normally shave twice and even more to get a smooth close shave. At the last turn of the century.e. These type of razors had a complex securing/detaching mechanism and various other not required design materials and stylistic components. THE µT¶-SHAPED RAZOR: 55 The 'T'-shaped razor with disposable double-edged blades. he could market a safety razor blade that could be thrown away when it grew dull. yThe platinum blade-superior metal for safety and better shave yThe pivoting head. the blades are intended to be immediately disposable.´ . This product became an instant hit as it was very easy to handle and also gave a closer shave with less irritation and cuts.flexible head to run freely on the facial curvatures. Let us now go through the company¶s constant focus towards research and development since its inception.A CASE STUDY The company realized that in India people have different shaving habits i. 1992. yThe moisturizer strip-moisturizes the skin while we shave and we get a clean shave without rashes. has been one of the dominant razor shapes since its initial introduction at the turn of the century.RESEARCH AND DEVELOPMENT ³Gillette holds its edge by endlessly searching for a better shave. Gillette visited metallurgists at MIT. December 10. had a revelation: if he could put a sharp edge on a small square of sheet steel. Gillette. Gillette has the Sensor Excel and Presto razors in this category. King Gillette founded what would become a corporate giant..PRODUCT INNOVATION Gillette constantly believes in providing its customers improved variants. manufacturers came up with the new technology of twin edged razors ±which were of both disposable kind and ones which came with a replaceable cartridge.

close. Another problem specific to the Indian conditions was the lack of running water. safe and convenient shaving experience at an affordable price.clogging in the twin edged razor. At Gillette 200 volunteers from various departments come to work unshaven each day. or after shave to use. especially those who use double-edge blades." Now read this to believe: ³We bleed so that you can get a good shave at home. 57 This commitment of the employees of the Gillette company sums up the amount of effort Gillette puts in constant research and development to provide its customers with a better product for a safer. and then they fill out questionnaires. According to Regional Business Director Manoj Kumar. closer shave. There they take instructions from technicians on the other side of the small window as to which razor. while the Push button cleaning mechanism provides anti-clogging facility. It adapted its designing to meet Indian requirements and presented Gillette Vector Plus.´ -A Gillette Employee. PRICING STRATEGY 58 THE 9 PRICE-QUALITY STRATEGIES: . and also other twin blade razors comes from superior ³rust-free´ twin blades with lubrastrip and pivoting head. Infrequent shaving leads to longer stubble/hair and that coupled with use of still water leads to clogging of twin blades for people who shave infrequently. The noticeable superior performance of Vector Plus over double edge. "Gillette Vector Plus has been created keeping in mind the shaving habits of a large number of Indian consumers. an anti-clogging twin blade system with a 56 contemporary look that offers a smooth. Gillette Vector Plus with 2 Gillette blades and a unique push clean button has been designed to address this and offer the consumers a smooth and close shave. troop to the second floor of company¶s South Boston manufacturing and research plant. This practice helps Gillette to constantly improve their products and also reflects upon the company¶s commitment to providing quality products. and enter small booths with a sink and a mirror. shaving cream.

or when we enter a new market with an existing product yHow? Need to decide what position you want your product to be in yPhilip Kotler identified 9 price-quality strategies HIGH PRICE LOW PRICE 59 HIGH QUALITY LOW QUALITY THE PRICING PROCESS: 1) Set Pricing Objectives 2) Analyze demand 3) Estimating costs 4) Draw conclusions from competitive intelligence 5) Select pricing strategy appropriate to the political.INTRODUCTION yWe need to set price when we have a new product.g.g. Nagle identified 9 factors: 1) Unique-value effect 2) Substitute-awareness effect 3) Difficult-comparison effect . The first step in estimating demand is to understand what affects price sensitivity. social. legal and economical environment 6) Determine specific prices SELECTING THE PRICING OBJECTIVE Possible Pricing Objectives 1) Profit objectives e. a) Dollar or unit sales growth b) Market share growth 3) Other objectives e. a) Targeted profit return 2) Volume objectives e.g. a) Match competitors¶ price b) Non-price competition PREMIUM HIGH VALUE SUPER VALUE OVER CHARGING MID VALUE GOOD VALUE RIP-OFF FALSE ECONOMY ECONOMY 60 DEMAND ANALYSIS: The demand analysis sums the reactions of many individuals who have different price sensitivities.

yOptional pricing: The organisation sells optional extras along with the product to maximise its turnover. yCompetition pricing: Setting a price in comparison with competitors. ySkimming pricing: The organisation sets an initial high price and then slowly lowers the price to make the product available to a wider market. It strives for profits. yPsychological pricing: The seller here will consider the psychology of price and the positioning of price within the market place. Some steps are redundant. This strategy is used commonly within the car industry. yProduct Line Pricing: Pricing different products within the same product range at different price points. The greater the features and the benefit obtained the greater the consumer will pay. An example of products using this strategy would be Harrods. After a detailed analysis of the above guidelines. it has been consciously using premium pricing for some products and average pricing for some. The objective is to skim profits of the market layer by layer. yBundle Pricing: The organization bundles a group of products at a reduced price. first class airline services. THE GILLETTE CASE: With all the above tools and directions for pricing.4) Total-expenditure effect 5) End-benefit effect 6) Shared-cost effect 7) Sunk-investment effect 8) Price-quality effect 9) Inventory effect PRODUCT MIX PRICING: The pricing must be modified when it is a part of the product mix. The types are: yPenetration pricing: Where the organisation sets a low price to increase sales and market share. Gillette India ltd. market share and eventually ends up the market leader. It follows the following steps: . Gillette does follow this practice of bundling its shaving accessories together and offer it as a value pack. Porsche etc. yThe hike in the price of presto from Rs 12 to Rs 15 was to induce the customer to move on to vector plus. yThe price cut offer on vector plus was to take on the smuggled versions that had entered the Indian market. The seller will therefore charge 99p instead £1 or $199 instead of $200 61 yPremium pricing: The price set is high to reflect the exclusiveness of the product. This form of price discrimination assists the company in maximizing turnover and profits. It doesn¶t need to follow all the 6 steps of pricing as it is a market leader with no potential threats. An example would be a video manufacturer offering different video recorders with different features at different prices. prices its products by taking into account the nine price-quality objectives and also the pricing objectives.

62 THE GILLETTE PRICE CHART Triple Blade Shaving System Razor + 1 cartridge 2 cartridges 4 cartridges 8 cartridges Mach 3 235.00 585.00 7¶o clock P II 56.00 Double Blade Shaving System Razor + 1 cartridge 2 cartridges 4 cartridges 8 cartridges Vector Plus 29.1) Set Pricing Objectives 2) Analyze demand 3) Estimating costs 4) Determine specific prices Its strategies are very much evident from the following price chart of all the Gillette razors and blades.00* 240.00 80.00 200.00 305.00 485. packs of 2 not available **pack of 5 cartridges *** pack of 6 cartridges is for Rs.00 55.00 695.00** *1 piece only.00 . 65.00 65.00 Mach 3 Turbo 395.00 35.00 380.00*** Sensor Excel 125.00 158.

where consumers are willing to shop around and where manufacturers want a large geographical spread. Clearly direct distribution gives a manufacturer complete control over their product. Intensive distribution: Used commonly to distribute low priced or impulse purchase products eg chocolates. soft drinks. If a manufacturer decides to adopt an exclusive or selective strategy they should select a intermediary which has experience of handling similar products.00 7 O¶clock 12. . televisions household appliances. The organization must distribute the product to the user at the right place at the right time.00 64 PLACE STRATEGY 65 Definition: A place strategy refers to how an organization will distribute the product or service they are offering to the end user. What channel of distribution to use? Two types of channel of distribution methods are available. Direct distribution involves distributing direct from a manufacturer to the consumer. Dell Computers. for example.) Presto 15. The product is usually highly priced. An example of would be the sale of vehicles through exclusive dealers. Selective Distribution: A small number of retail outlets are chosen to distribute the product. Efficient and effective distribution is important if the organization is to meet its overall marketing objectives. 2. Exclusive distribution: Involves limiting distribution to a single outlet. Indirect distribution involves distributing your product by the use of an intermediary. because of it profitability will be affected. Selective distribution is common with products such as computers. and requires the intermediary to place much detail in its sell. If the organization underestimates demand and customers cannot purchase products. 3. Indirect Distribution Direct Distribution Distribution Strategies: Depending on the type of product being distributed there are three common distribution strategies available: 66 1. credible and is known by the target audience.63 Disposable Shaving Systems Variant Price (Rs.

it is the TSI who communicates schemes and benefits rolled out by the 67 company to the distributor who in turn informs his EFF. In NCR Region. The TSI meets distributors on a monthly basis for periodic review.e. 3) Depth ± ensuring availability of product range at the retail outlet The company does not interfere in any manner as far as the putting up of Gillette walls in shops is concerned i. a separate well-defined area is allocated to each distributor. In NCR region. For more sophisticated outlets. The distribution is monitored basis off take and the distributor¶s (or distributor¶s appointed person) frequency of visiting the retail outlet is keeping in view the availability of ready stock. This comprises a team of 5-6 people who work directly under the distributor and are paid by him (and not the company). The ASM and TSI are on company payroll. it is entirely at the discretion of the retailer. On an average. The Territory Sales Manager prepares the TMR (Total Market Report) detailing important variables like market share. racks are used designed in ways such that they take up minimum space For the high-end products. Also. etc for the area under him. the margin being given at the retail level is 12%. 68 . The distributor appoints the EFF (Effective Field force). The distribution chain in Delhi is known to be smooth and without bottlenecks with ABSOLUTELY NO PROBLEMS being reported with regard to handling and acquiring stocks. sale of goods to the retailer takes place on both a cash as well as credit basis. in relation to Vector Plus and Mach 3 DISPLAY: The company has developed innovative display units for both smaller kirana and bigger supermarkets. There are around 15-20 distributors in Delhi. the move is from hanging cards to a grooming center where the entire grooming regime is brought together. In Delhi.increase in the number of SKU¶s (Stock Keeping Units) 2) Deepening the impact of a Gillette wall ± the height at which the wall is displayed should at the eye level of the customer. The TSI is responsible for the targets/performance of the area under him and he is expected to communicate actual results back to the company on a regular basis. The broad structure in the distribution network is as follows : Assistant Sales Manager (ASM) Territory Sales Manager (TSM) Distributor EFF The goods are stored at depots before they move into the hands of the distributor. One distributor has approximately 1100 shops under him. growth trends.THE GILLETTE CASE: The appointment of distributors is handled by Gillette India directly. a retail unit stocks the maximum number of Prestos. It seeks to increase sales through 1) Increased range .

8% of advertising expenditure ( Source: Royal Mail 2000). colors etc. Companies can run the same advertising campaigns used in the home market or change them for each local market. The third approach consists of developing a global pool of ads. Broadly a company can choose from three different advertising strategies. ySales promotion: Commonly used to obtain an increase in sales short term. It can use the same theme globally but adapt the copy to each local market. varying only the language. There has been a massive growth in direct mail campaigns over the last 5 years. which contain names and addresses of potential customers. Direct mail allows an organisation to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. Spending on direct mail now amounts to £18 bn a year 70 representing 11. response rates increase thus increasing the chance of improving sales. Could involve using money off coupons or special offers. The company can use the same ad everywhere (across different regions and countries).PROMOTION STRATEGY 69 WHY PROMOTION? Promotion keeps the product in the minds of the customer and helps stimulate demand for the product PROMOTION STRATEGIES: A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. but it is also involves being able to handle successfully negative attention. name. THE GILLETTE CASE: TV/Radio ± Gillette has an extensive advertisement campaign being run on television. By personalising advertising. . yDirect Mail: Is the sending of publicity material to a named person within an organisation. from which each country selects the most appropriate one. An organizations promotional strategy can consist of: yAdvertising: Is any non personal paid form of communication using any form of mass media. yPublic relations: Involves developing positive relationships with the organisation media public. Organisations can pay thousands of pounds for databases. The art of good public relations is not only to obtain favorable publicity within the media. yPersonal selling: Selling a product service one to one.

The Gillette website is excellent and there are dedicated websites for their new products which present the product and related information in a very nice manner. The vector plus ad also comes during the telecast of cricket matches in the form of ³push clean facts. mostly short term . Also the company can try and inform people about the new technology in shaving and about the right way to get a smoother shave. Several ads are flashed in daily newspapers and magazines to advertise these schemes. Therefore we suggest that Gillette ropes in a Bollywood star or a cricketer for its advertisements which have not only a greater impact but also help the ad recall and retention. colors etc.e. This can also be a very handy tool to reach the less educated and lower income groups.g. Based on consumer survey we found that the ad. a free gift is given with the product. µReduced price packs¶ are offered in which single package is sold at reduced price. designed to stimulate quicker or greater purchase of products or services by consumers or the trade . µPremiums¶ are also offered i. As we know movies have great influence on not only youth but among all ages . For E. Sales promotion includes tools for: 1) Consumer promotion ±.So Gillette can have tie-ups with movie/producers and can show use of Gillette products in the same. Internet. Whereas Gillette Mach 3. Vector plus ad campaign targeted towards middle income group has that specific backdrop in the ad. through the use of direct mails and 71 pop up ads. SMS can also be a very handy tool to spread awareness about discounts and other promotional schemes. It has adopted the first approach for mach3 & mach3 turbo ads wherein it uses a standardized ad across all countries . we suggest them to try something similar here. In this kind of promotion. For the lower segment razors like vector plus & presto it retains the global theme but adapts it to local market needs.The company uses a mix strategy for its ad campaigns for different products.recall is very less and also the ad is not having a great impact on the people. . However the company does not have a India specific website which we believe the company can develop as an additional promotional tool.´ (The name push clean actually stands for the push-clean technology) Print ± This medium is mainly used by Gillette to spread awareness of their centsoff deals i. has a campaign portraying foreign models to cash in on the tendency of the Indians that anything associated with foreigners is of good quality and meant for the higher class. their reduced price packs and banded packs. µBanded packs¶ of two related products sold at lower price than sum total of the two are also offered. Movie/Soaps. a high end product. Gillette has already associated itself with the Hollywood movie iRobot. Sales Promotion: It consists of diverse collection of incentive tools .factual information of the game.This is another avenue Gillette can explore and reap great benefits from. The advertisement for each product has been developed keeping in mind a specific section of the market. only making changes in the language.e.

Other method is µSpecialty Advertising¶ in which low cost items bearing the company¶s name and address are given to prospects and customers.Price-off i. a straight discount off the list price on each case purchased during a stated time period . History of the BCG Matrix 1960¶s ± diversification of businesses Need for universal management tool First implementation in 1969 by Boston Consulting Group 74 . targets are given in terms of points/time period. sales contests which aim at the sales force or dealers to increase their sales result over a stated period.The other are allowances which include advertising allowance that compensates the retailers for advertising the manufacturers¶ product and also a display allowance that compensates them for carrying a special product display. When shaving gel for example is given free with mach 3 turbo it is called a CP Offer . However. yBusiness and sales force promotion . offers to consumers¶ savings of the regular price of the products flagged on the label or package.Gillette offers Price Packs (cents-off deals) i.e.The sales force (EFF) is given an additional incentive for the sales achieved by them over & above their target. It is a 2x2 matrix plotting market share against market growth. This is paid as a percentage of the additional sales achieved. Higher points are earned by the EFF individual for selling a higher variant MARKET STRATEGY 73 The Boston Consulting Group (BCG) matrix It is a simple tool for assessing a company's position relative to others in terms of its product range.2) Trade promotion .e. the company was unwilling to disclose the exact percentage to us. 3) Business and sales force promotion .e.This includes participation in trade shows and conventions. 72 THE GILLETTE CASE: yConsumer promotion .Consumer Promotion Offer.Gillette. The company follows a 'Points System¶ for the EFF i. yTrade promotion . The company works on a slab system wherein the incentive payout increases with higher sales achieved. at present as found in our survey is not much into using trade promotion tools.

These should be dropped from the portfolio to release funds for investment in more attractive opportunities. When is it used? It is used in initial audit discussions to identify ³product development opportunities. Cash cows represent those products in which the company has a high market share but where the market is mature and slow growing or even declining. whilst one in which it had a high market share but where the market was growing slowly would appear in the bottom right. We have analyzed the razor market and then placed the various . we have tried to apply this concept to this project of ours. They need to be watched closely and investment maintained to keep a presence since they could become tomorrow's starts ² but equally the commitment should not be too high since they could also turn out to be tomorrow's dogs! THE GILLETTE RAZORS BCG MATRIX With the study of the BCG Matrix. Questi on marks are those products in which the company ahs low share but where the market is beginning to take off or has significant growth potential.Why use it? The BCG matrix helps a company think about the portfolio of products and services which it offers and make decisions about which it should keep. 76 Dogs are products where the company has low market share and where the market itself is not growing.´ The company then plots its products on the matrix ² for example a product in a fast growing market in which it has a low share would appear in the top left hand area. How to use a BCG matrix? Key Assumptions of BCG Matrix yStable cost/price relationship (Not valid if the firm is pricing on projected lower average unit costs in the future) yMarket leader influences the average costs yProfit margin is a function of market share (This ignores profitable niches) BCG Matrix Format Vertical Axis = Relative Market Growth Split at 10% by a horizontal line Horizontal Axis = Relative Market Share Split at 1x by a vertical line 75 WHAT IT MEANS: To help the analysis and stimulate the subsequent discussion the BCG model offers four descriptions of the product/market combinations which might be found: Stars represent those products or services which the company has a high share of the market and the market is growing. which it should let go and which it should invest further in. They should be invested in further to maintain the growth. These products should be 'milked' to provide cash for investments in future product areas.

the double-edged razor which may not have much growth in the future.125 and it successively boils down to Rs. Vector Plus is one product with tremendous potential for market growth. so these products should be 'milked' to provide cash for investments in future product areas. A Sensor Excel would initially cost Rs. since it combines superior technology. VECTOR PLUS AND STERLING Here we put sensor excel because it has been losing its market share due to its pricing close to that of Mach 3 . 78 Evaluation of BCG Matrix: Pros . Mach 3. attractive and competitive price and above all the Gillette tag. imported blades. which is a twin razor costs Rs. the premium product of the company has also been a huge success amongst its segmented markets of youth and executives and its demand is only growing. etc. which also doesn¶t gel with the company¶s objectives but then it is the only such product in the company¶s product basket. CASH COWS: WILKINSON AND 7 O¶ CLOCK BLADES (FLAT BLADES) The reason for putting them here is that they currently enjoy both high market share as well as market growth. which also has several added features like superior technology. they have a low market share as well as low market growth. as the complete eradication of double edged shaving pattern is one of the primary objectives of Gillette QUESTION MARKS: SENSOR EXCEL. anti-hair clogging mechanism. Analysis: The reasons for placing the product portfolio in the above manner is as follows: 77 WILKINSON BLADES P II.3 per shave (price per shave). great looks. People actually are tending to buy either vector plus or Mach 3 as a result of which Sensor Excel is becoming redundant.235 initially). STARS: MACH 3 AND PRESTO Here we placed Mach 3 and Presto because they have a high market share as well as market growth. There still are some customers who use only double-edged razors and are also specific about the 7 o¶ clock brand. WILMAN RAZORS 7 O µCLOCK BLADES MACH 3. STERLING. But now there could be slow growth or even decline in this segment due to decline in double-edged razors ( if the company succeeds in its objective). Consider this: the P II. Presto would never decline in sales because the market for a disposable razor always exists due to its simple characteristic of ready to use and throw.29. PRESTO SENSOR EXCEL. So the company has in fact launched more innovations or developments of the basic product like Mach 3 Power and Mach 3 Turbo.85 while a Vector Plus costs only Rs. VECTOR PLUS DOGS: 7 O¶ CLOCK P II AND WILMAN RAZORS Here we have considered Wilman razors and the 7 O¶Clock razor P II because Wilman razors are losing market share very rapidly while the 7 O¶Clock razors are too expensive for their segmentation. which is the same for that of Mach 3 (which however costs Rs.razors and blades of Gillette in the relevant quadrants. As a result. Then we have the Sterling.

Simple and rapid Solid basis for decision-making Good measurability of market share and growth Provides information about efficient resource allocation within the organization Generator for strategic options Evaluation of BCG Matrix: Cons Oversimplifies complex decisions Only 2 factors considered = creates risk Uncertainty in market and SBU definition Only considers current businesses no dynamics Does not recognize possible synergies between SBUs Can fall prey to the ³GIGO´ syndrome Conclusion As long as management understands that the BCG Growth/Share Matrix generates options which require further analysis and validation. this tool can greatly enhance strategic decision making 79 CONSUMER ANALYSIS 80 On the basis of our questionnaire and consumer survey. we found the following: BRAND RECALL: FREQUENCY OF SHAVE: 81 once in 3PURCHASE: 82 THE REASONS FOR CHOOSING A PARTICULAR RAZORS PLACE OF .

convinienc e 80 90 100 83 Impact of Promotions 64% 21% 15% Yes No May be Ad Recall 29% 71% Yes No 84 7 O'clock : A Gillette product? 33% 67% Yes No WILKINSON: A GILLETTE PRODUCT? 85 Analysis of the consumer questionnaires .

. Place of Purchase Since shaving products would fall under the category of convenience goods being bought on a regular basis. we wanted to find out the place from which the buyer was making the purchase. However. 21% said that any such promotional schemes would not influence their buying behaviour and the remaining 15% were not sure.Post completing the survey . we got down to the task of analyzing the data that we got . Others who did recollect could primarily recall their Sata Sat ad. A majority of them(around two third) were unaware that 7 O¶clock and Wilkinson were actually under the Gillette umbrella and perceived them as brands of competition. Brand Recall This was the first question that we put to our respondents. This was important for us to try and understand the shaving market scenario. Also. we find that an overwhelming 84% of those surveyed mentioned Gillette as the brand they associate with shaving. Another 52 respondents based their decision on the µconvenience of shave¶ while 48 respondents considered factors other than quality and convenience behind their purchase decision. y7 O¶clock and Wilkinson as Gillette brand s This was the last question that we put to our respondents. 62% of the respondents (34+28) was not shaving on a daily basis. to try and gauge their natural response . slightly over one third (34%) were only shaving once in 3-4 days. Therefore. Impact of Promotions 64% of the respondents said that they would respond favourably to promotional schemes brought out by the company. 86 Reasons for choosing a particular razor 100 respondents mentioned quality of shave as the primary attribute that they consider when they make their buying decision. Also. Our findings corroborate the fact that shaving frequency in India is low and shaving conditions relatively tough. Upon consolidation of survey results. Ad Recall More than two third of the respondents were unable to recollect seeing a Gillette ad indicating below average ad recall for Gillette shaving products. Frequency of Shave Of the sample of 200 that we surveyed we found that while 31% of the respondents shaved on a daily basis. We found that more than half(56%) of those surveyed were making the purchase from locality stores and 22% were making their purchases from Departmental stores. consumer behaviour and consumer perception about Gillette. 28% of the respondents shaved every alternate day. we did not provide them with options.

Therefore. yThe distributors supply both in cash & credit terms to the retailer. 365 that are not readily available at all retail outlets. Viability: We have tried to come up with suggestions which are cost effective. House of Malhotras is a µLala company¶.´ RECOMMENDATIONS A set of recommendations have been developed for Gillette India keeping the following factors have been in mind Consistency: We have tried to ensure that we do not lose focus of the outlined objectives. yNeither the retailer nor the distributors face any problem of defective items or any other complaints from the end user. others receive it according to a pre-determined time frame of a every 3 days(for outlets in big shopping malls. Market Realities: The Indian shaving market has a lower shaving frequency and relatively poor shaving conditions. in some the retailer receives the supplies on need as basis. Whereas it was not the same with competitive products like Supermax. yThe retailers receive a margin of 12 % on all Gillette products ( with the exception of vector plus. yThe frequency of supplies from the distributors to their respective retailers is different in different cases. yIn the words of one of the distributor (merchandiser) ³ Gillette is very professional in its approach as far as distribution is concerned. we interacted with both the distributors as well as the retailers and we found that: yBoth the distributors & the retailers were well stocked with Gillette shaving products. practical and can be implemented by the company. Also the option of online booking for these agents is not available as of now. on which the margin is only 10%) as compared to 24-25% margin on competitive products.(house of Malhotras & local players) 88 yThere are no formal feedback forms that the company circulates but any problem is carefully handled. .both in terms of quantity and range of products. Their attitude towards the retailer is a take it or leave it kind of attitude. departmental stores) week. availability of the product is not a problem. Gillette walls ± Going beyond the shop These have been put up by Gillette as a strategy behind cash counters in large shops and departmental shops to promote impulse buying. fortnightly.87 Analysis of interaction with the distributors & the retailers In our study. We recommend that the company could adopt the following strategies.

eg: college canteenpresto. the company normally promotes them and tries to increase off take during the festive season. some perfume etc might have to be included as a part of the gift pack as simply giving a razor along with cartridges may convey the wrong message. cinemas & multiplexes. Also. A mirror can also be included on the inside flap of the case. there is potential to make inroads here.Both the designing of the wall and the placing of the razors/cartridges is done in such a manner so as to capture the customer¶s attention and µpush him¶ into buying 89 the product (Gillette is known for pressure selling since it deals in premium products). vector plus 2) These walls are designed aesthetically and have a particular theme that goes with the area where the walls are being put up. The company can display the entire range or a particular price range of products that it offers depending upon target market visiting these places. It is suggested that 1) These be put up in new places beyond shops eg college canteens and cafeterias. Gillette Gift Packs These are currently available in the market. The company does not suffer from a problem of goods returns of defective pieces from vendors. However. 3) Birthday Gifts ± The company can promote Mach 3/Mach 3 Turbo as the best gift that a friend / family member can give to a teenager who has just started shaving. Eg. to increase the perceived value of . (Though it would be imperative that the company brings out smart and well designed cases that would make it a decent gift item for a corporate gift. A wall in a college canteen would have bright vibrant colours and photographs of college goers as this would appeal more to a College going market. 4) Valentine gifts ± this particular day has gained a lot of importance in the past few years thanks to excessive commercialization. keeping in view the nature of the occasion. We suggest that the company could target the following new segments 1) The Corporate Gift Market ± Gillette products are known to be premium products and the company enjoys a good brand image in the market.) 2) Wedding Gift market ± This will require attractive packaging. Therefore. Gillette can cash on this day too by coming out with attractive gift packs during this time with special focus on mach3 /mach3 turbo 90 Warranty Card Gillette products are of supreme quality. However. coffee bars.

Further. Thus the company can provide a small (plastic/Rexene/polyester) pouch with mach3/mach3 turbo purchases or with a bulk (3-4) purchase of presto (as many people use presto while travelling rather than their normal Gillette razor) 91 3) Warranty card ± As mentioned above. this could be included for all Mach 3 and Mach 3 razors and cartridges. Since. a pack of 8 cartridges would have maximum warranty while a pack of 2 cartridges would cover a lesser period for defects. To counter this. tooth paste etc. the company could start putting holograms on its products which will a) Help consumers differentiate between counterfeit and genuine Gillette products. This would lead to added convenience for the user. during the consumer survey we realized that there is a problem of counterfeit Gillette products in the market. Also. Therefore. It gives the buyer. 4) Information Leaflet ± A leaflet could be included as a part of the pack which would include the following information yHow to use Mach 3 ± the ideal way yCleaning your Mach 3 (tips like use of hot water is better than cold water) yThe ideal shave /tips on shaving 5) Satisfaction survey relating to the user¶s experience with Mach 3 could be included . The following add-ons can be included. we came across quite a few consumers who perceive mach 3 to be an expensive product. Since Gillette offers unmatched product quality. the company should position it as a product bundle. 2) Travel Pouch for razor: it has been seen that most people face a problem in keeping their razor safely when travelling (in a way that does not damage the blade). 1) Razor Stand for washroom ± Gillette Mach 3 and Mach 3 turbo packs should be accompanied with a plastic stand that can be placed on the washroom wall next to the mirror. Gillette could do product differentiation by offering different warranty periods for different cartridge packs (2-4-8). b) Establishes ³trust´ in the company products in the minds of the consumer The Mach 3 experience We recommend that Gillette should position its premium Mach 3 product as a superior shaving experience rather than µjust a shaving product¶. A holder can be provided which could be used for keeping the razor along with other toiletries like tooth brush. especially those who perceive the product to be expensive a sense of value for money. the cost implications of product replacement would be minimal. the company could provide a warranty card along with its premium end products ± Mach 3 and Mach 3 turbo.the product in the mind of the customer.

carry a certain validity period and be used for purchasing Gillette products within that validity period. In up-market departmental stores/supermarkets: yThis would be exactly like a credit card minus the magnetic strip i. In locality stores: It would be issued at select merchant establishments that stock Gillette products. etc. he would be given more points in addition to the normal points system followed by the store. instead of just Gillette products. or the Ebony card. Advantages: 92 yThe incentive of redeeming points would surely induce the customer to buy Gillette products. In this type of agreement. tickets to a newly released cinema. yThe store would also be benefited as more customers would now be motivated to buy their Gillette products from them rather that a kirana store. Giant. even grocery items. Also the card holders would be entitled for events like lucky draws. Big Bazaar..e. 2000/. When a customer makes a purchase.as a tear sheet which consumers could send back to the company. which can be later redeemed for any product at the store. The card can be initially given with the purchase of a MACH 3 razor or the gift pack. It has two advantages yIt gives valuable data to the company of what Mach 3 users think about and expect from the product yIt makes the customer feel special. maybe even a higher version of the razor he usually buys. discounts in select eating joints and shopping malls for transactions above a certain amount. just like the Planet-M card. At the time when the customer purchases the . a customer may be influenced to buy other Gillette products also. ySince the range of products is better displayed in a supermarket. etc. like Ebony. whenever a person buys a Gillette product. donor passes to musical events. The cards would be for different pre approved values of 500/-. he automatically gets some points. Nanz. yAnother way of getting a shopping card is to tie up with supermarkets and shopping malls. 1000/. Gillette Shopping Card Gillette could actually come up with the idea of launching a ³Gillette shopping card´ . one for supermarkets and another for locality stores. In case the total purchase value is less than the card value the customer would be reimbursed the remaining amount in cash. which could be redeemed for any purchases from the store. that have their own shopping cards.

yCollege Festivals 93 Since the scope of our project is limited to NCR. They would feel different from users of other brands. yThe maximum benefits would be tagged with the highest value card. we realized that a majority of the respondents who were between 18-25 years of age were using Gillette because of a ³sense of pride´ apart from its µBrand value¶. It can do this in two ways. the company can actually fix incentive based targets. etc. In spite of this. either exclusively for Gillette or one combined with a store. The retailer is a very crucial element in the distribution strategy. they do not have specific targets. the most impulsive customers who would be influenced by add-ons like entry to musical shows. Pitching retailer against retailer We questioned even some retailers during the course of our project. Therefore. we recommend that the company associates itself with festivals and other events carrying mass appeal in Delhi University . Youth In our consumer survey. They are. which means he cannot be neglected for long. DCE. Upon enquiry. yPrivileged Gillette consumers would be eligible for attractive offers. free passes to music concerts. Gillette we believe stands to gain if it positions itself as the µBrand of the youth¶.Indraprastha University.card he would be entitled to certain sops like movie tickets. lucky draws etc. The nature of the benefits that would come with the card would be as mentioned before.etc. there are a number of local players in the market selling twin blade razors. The merchant would be paid the cash value of the card upon depositing the same with the company. in fact. movies. we found out that competitors were giving a higher margin to the retailer than Gillette. R & D : Giving a Technical push At present along with the Malhotras. Benefit s : yThe company is getting the consumer¶s commitment beforehand to make Gillette purchases in the coming future. Even though Gillette is the market leader there still is scope for them to . The company could have a concept of monthly / quarterly lucky draw for retailers exceeding their targets and could keep a holiday package or high value consumer durable as the prize for the winner of the draw. He even plays a vital role in shaping the image of a product. IIT. yThe Gillette card The youth is the segment that is most attracted to a concept like a shopping card.

Strong Advertising Pitch Gillette has traditionally been using foreign models in its Mach3 ad campaigns & for its other products like vector plus. We believe that John Abraham would be best suited for a Gillette shaving range ad campaign because he generally remains unshaven and has that image in the public mind. the amount of mind share that the ad is able to capture is on the lower side. Also. The huge spurt in cell phone usage can be wisely tapped by Gillette for reaching its customers. 94 . (this is backed by our survey ).e. presto they have not used any specific Indian brand ambassador. The fact that none of their products (except Presto) are touched by a human hand is an additional selling point for the company and should be highlighted in a subtle manner in the advertisements. Since this medium maybe costly so the company can use it for communicating offers and discounts on its products if not for general advertising . all Gillette products except for Presto are manufactured outside India. John Abraham and Sachin Tendulkar. Therefore.increase their market share further. communicating the latest price cut on vector plus Guerilla warfare The company could occasionally take on its competitors completely by surprise by coming out with new and innovative Ideas. Fardeen Khan. We found consumers lacked awareness of this fact and were impressed when they were told about this during the course of our survey. One way of doing this is to constantly come up with newer versions or products. we were able to narrow down on 4 choices: Sharukh Khan.g. Through our survey. The company can make use of the latest ad medium of SMS. 95 . Therefore a clean shaven John Abraham will have a lasting impact in the consumer¶s mind. Gillette could also work on coming with special razors yFor trimming corn and callous in the feet yTo prevent skin irritation caused by shaving (people with sensitive skin) ySingle blade disposable (or non-disposable) for the more price conscious. It is suggested that the company uses an Indian model or actor or sports person to cash in on his appeal to promote its range of shaving razors.

Some possible strategies could be: yVector plus free with purchases of INR 500 and above at select grocery / departmental stores yPresto free with purchases of INR 200/250 and above at select grocery / departmental stores This would be in the nature of a limited period offer. The above strategy can be extremely successful in penetrating those households (through the housewife) wherein the males of the household are loyal customers of another brand for years & no sales pitch or salesman can change their preference except maybe a experimental use of the free product.

The Barber Shop
3.9 billion blades are consumed annually in India, a third of which sits in barbershops. So technically, 50 per cent of the shaving population goes to barber shops. Therefore Gillette could develop a strategy wherein its sales force specifically targets people frequenting barbershops. The primary challenge in this regard is the cost per shave, which is much lower for a conventional double edge razor than for even the lowest variant of twin blade (Presto). It is not feasible to try and upgrade a price sensitive consumer in this segment. We therefore suggest the following 1) Bulk Deals of Gillette 7¶o Clock, Wilman & Wilkinson with Barbers : The three come closest in the Gillette product chain to the low cost products of House of Malhotras. Barbers can be convinced & financially motivated to move from either unbranded blades or from competition to these basis the following strengths: a) Demand is inelastic. The barber will always have a steady flow of customers. He can therefore afford to make bulk purchases (if given proper incentives). b) A blade is a durable product. Bulk Purchases made can be stored with ease. 96 A barber provides numerous services apart from shaving like hair cuts, head massage, etc .customers waiting for their turn typically watch TV or flip through magazines. we suggest that the barbers could be given incentives to stock some of Gillette¶s razors & other products to attract the attention of waiting customers. This exercise may induce self shavers to make on the spot purchases and saloon shavers to try out new products 2) Making /Production of Shingle outside shops: We suggest that Gillette starts a scheme wherein it makes the shingle carrying the name of the barbers shop. While it would produce these for the barber at a subsidized cost (i.e. less than what the barber would incur by getting it made himself), approximately a 10% strip at the bottom would be dedicated to the Gillette name and punch line.

This would help promote brand recall among consumers frequenting the shop and increases the possibility of them moving from barber shaving to self shaving. Since such an activity is not in line with Gillette¶s core competence, it could be outsourced to a third party. 3) Shaving Mugs & Brushes at Barber shop carrying Gillette name It is suggested that Gillette could offer free shaving mugs and brushes to barbers who enter into Bulk deal contracts with it. These would have ¶Gillette¶ along with its punch line embossed on them. A consumer typically sits for 10-15 minutes in a fixed position while getting a shave done. Since the consumer is not in a position to move/undertake any other activity during that time; we believe that this becomes a good strategy to get him thinking about Gillette- capturing his attention span. We further believe that this would definitely prompt a one time purchase of Gillette shaving products and may push the customer in the medium to long term towards self shaving. 97 RAM LAL AND SONS GILLETTE- THE BEST A MAN CAN GET

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http://www.bcg.com/publications/publication_view.jsp?pubID=451&language=English 98

APPENDIX AND ANNEXURES
THE CONSUMER QUESTIONNAIRE:
Name: Age: Address: Monthly Income/Expenses Groups: o Up to Rs 5,000 o Above Rs 5,000 to Rs 10,000 o Above Rs 10,000 to Rs 15,000 o Above Rs 15,000 to Rs 20,000 o Above Rs 20,000 99 1 What brand do you associate with shaving razors/cartridges ? _______________________________________________ 1. From where is the razor/blade/cartridge generally purchased? Departmental store Chemist Grocery Gift Shops Locality store Other: _____________ 2. Which razor do you use? Disposable Double Edged Twin Blade Triple Edged

( QUESTIONS IF RESPONDENT IS A DOUBLE EDGE USER )
1 How often do you shave? Daily Every alternate day

How often do you shave? Daily Every alternate day Once every 3-4 days Once a week Fortnightly 2.4 days Once a week Fortnightly 2 Which blade do you use? Laser Topaz Supermax 7¶o clock Wilkinson 3) Reasons for your choicea) ( try and gauge natural response without giving options i.e. Reasons for your choicea) ( try and gauge natural response without giving options i. why did you switch back to doubleedge________________________ if no. impromptu ) ________________________________________________ b) (give attributes and ask them to rank their preference in case respondent opts for more than one choice) dad or peer has been using it convenience of use quality of shave use of less shaving cream and/or water . impromptu ) _________________________________________________ b) (give attributes and ask them to rank their preference in case respondent opts for more than one choice) dad or peer has been using it convenience of use quality of shave use of less shaving cream and/or water 100 price 4) Have you faced any problems while using a Double edged razor? Problem of cuts Time consuming Maintenance and handling 5) Have you ever tried a twin blade razor? If yes.e.Once in 3. reason for not trying ______________________________________ ( QUESTIONS FOR TWIN/TRIPLE/DISPOSABLE RAZOR USER ) 1.

price 3) Problems faced if any in twin edged? Cuts time consuming maintenance and handling clogging of hair hard shave 101 4) Have you ever used a double edged razor? If yes.Why did you switch over to ____________________________ no---reasons? ____________________________________ a) unaware b) associate it as a product of upper segment c) problem in availability d) price (if yes-are you aware that Gillette imports razors.if no then ask²does this knowledge change your perception?) 3) Which of the following attributes do you associate with Gillette. reasons for shifting to twin edged ________________________________________________________________ ___ 5) Which razor /cartridge do you use? Razor : Gillette / 7 o clock / Wilkinson / Wilman / Gallant Cartridge: Gillette / 7 o clock / Wilkinson / Wilman / Gallant 6) If Gillette then which? Presto 7oclock Vector Sensor Excel Mach3 Mach3 turbo (For respondents who have never used Gillette or have moved away from it after using it) 1) Have you ever used a Gillette razor? Yes. how do you rate them PARAMETRES strongly agree agree disagree strongly disagree Value for money Technology Safety Quality of shave Sense of pride 3) Do you recall any ad of Gillette? If yes.______________________ 4) Is your buying behaviour affected when Gillette comes out with promotional schemes . What do you like in the ad? _________________________________ 102 What do you think was the intended message?________________________ Suggest a possible brand ambassador for Gillette. .

one cartridge free with 4. What is the basis of delivery? Fixed / pre determined If yes. What is the form of purchase? Cash Credit Both Combined Any other ____________ 104 7.etc) Yes No Maybe 5) Did you know that 7¶o clock and Wilkinson sword are actually Gillette products? 103 THE RETAILER QUESTIONNAIRE: 1. Please give details of retailers you supply to L ocation Number 8. What are the different shaving products you deal in? __________________________________________________________________ ______ ___________________________________________________________________ ___ 4. Which all Gillette products do you deal in? Razors Shaving Gel / foam After Shave Gel After shave lotion Cartridges Deodorant 5. Which Gillette razors and cartridges do you deal in? RAZORS CARTRIDGES MARGINS Presto Vector Plus Sensor Excel Mach 3 Mach 3 Turbo 6. From where do they obtain the stocks? . please specify o Weekly o Fortnightly o Monthly As and when the retailer orders 9.(price discounts. Name : 2. Address: 3.

yReasons for advertising only at the time of new product . How would you compare Gillette with others on the following parameters : GILLETTE OTHERS Margin on razor Schemes to dealers Delivery system Convenience Dealing with co. What is the form of sale? Cash Credit Both combined Others 12.Directly from the company C&F agents Others 10. If the form is credit. Is there provision for online booking? 105 Yes No 14. Is there any provision for Vendor feedback? Yes No 15. Any problems faced in purchasing of stocks? Were they properly handled? __________________________________________________________________ ___________________________________________________________________ ___________ 11. What are the competitive / other brands that you deal in? RAZOR CARTRIDGES MARGIN ON RAZORS 16. then is there any scope for sales returns? ___________________________________________________________________ ___________________________________________________________________ __________ 13. yGillette ad strategy and why the company continues to pursue it despite poor ad recall./agents Payment systems Handling of stocks Handling/solving problems/queries Efficiency-online booking 106 COMPANY CHECKLISTS yReasons for hike in price of Presto from Rs 7.5 to Rs 12 to Rs 15.

. Our group comprises of 5 students C V R Shekhar.dhingra@gillette.launches and price cuts and not on a regular basis otherwise yReasons for not projecting Wilman and Wilkinson as products from the Gillette stable despite acquisition of ISPL yCost to company of a Gillette wall yPayment made to retailer for putting a Gillette wall in his outlet. Thanks & Regards Akshay Berry MIB 1st Semester Original Message -From: Rishi Dhingra <Rishi_Dhingra@gillette. 107 COMPANY CONTACTS AND OTHER SOURCES 108 Inbox : Read Mail [ Back to Inbox ] Printable Format | Show full Headers Prev | Next Move to Folder.co. Request you to kindly give us an appointment / direct us to the concerned person who could guide us/provide some data in this regard.com cc: Subject: Marketing Project on Gillette shaving range 30 Aug 2004 13:22 Dear Sir We are students of Delhi School of Economics ( Master in International Business ) and are doing a marketing project on Gillette's range of shaving razors. ³deepika´ deepikamittal19@yahoo. ³shekhar´ shekharcvr@yahoo. We would be highly obliged and would not take too much of your valuable time.com> To: rishi.in .com> To: "akshay berry" <akshay_berry@rediffmail. Anshul Sood. if required by you. 109 "akshay berry" <akshay_berry@rediffmail.. Ivan Passanah and myself. The thrust of the project is to try and upgrade double edge users (who comprise 90% of the market) to twin blade systems and also to upgrade existing Gillette users up the value chain. Deepika Mittal.com . yReasons for not playing upon the fact (in ads) that all Gillette shaving razors (except Presto) are imported and not locally manufactured. We also intend to do some surveys at the level of the consumer and retailer and would be glad to provide data or any other information collected.com>.³anshul´ 110 .

Deepika.com> From: "Rishi Dhingra" <Rishi_Dhingra@gillette. ³shekhar´ shekharcvr@yahoo.com Subject: Re: 4311623A Plain Text Attachment [ Download File | Save to my Yahoo! Briefcase ] September 14. If you do not get a reply. Anshul and Ivan You could get in touch with Himava Nath at the Gillette India office and he could potentially share with you whatever is "non confidential" stuff.com .com. 2004 Mr Berry. ³ivan´ ivan83@rediffmail.com . Business Manager.co. Rishi Dhingra. [Edit Preferences ..com Cc: Himava Nath <Himava_Nath@gillette.com 111 -. Consumer Service Associate 4311623A The HTML graphics in this message have been displayed. Shekhar.com .in . please let me know. Regards. Thanks for visiting our website! We have forwarded your email to the Gillette office in your country. Grooming AMEE Group Tel : 44(00)20 8847 7258 Fax: 44(00)20 8847 8800 email: rishi_dhingra@gillette.anshulsood@hotmail. Thanks again for visiting our site and for your comments! Valerie D.Original Message -From: Valerie_Ducasse@gillette.What's This?] Delete Reply Forward Spam Move. . 112 .com CC: "Himava Nath" <Himava_Nath@gillette.com To: akshay_berry@rediffmail. ³ivan´ ivan83@rediffmail.com> Plain Text Attachment [ Download File | Save to my Yahoo! Briefcase ] Dear Akshay. ³deepika´ deepikamittal19@yahoo.com To: akshay_berry@rediffmail.com Subject: Re: 4311623A Forwarded Message [ Save to my Yahoo! Briefcase | Download File ] From: Valerie_Ducasse@gillette. ³anshul´ anshulsood@hotmail.. You should receive a local response within 15 business days.com> Subject: Re: Marketing Project on Gillette shaving range Forwarded Message [ Save to my Yahoo! Briefcase | Download File ] Subject: Re: Marketing Project on Gillette shaving range To: "akshay berry" akshay_berry@rediffmail.

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HISTORY OF GILLETTE 3. HLL 5. GODREJ 5.2. EXTERNAL FORCES 5. STRUCTURE 3.1. COMPETITOR ANALYSIS 5. FA 5.1.4. EXECUTIVE SUMMARY 2. PERSONAL GROOMING INDUSTRY AN OUTLOOK 5.2.1.6. GILLETTE SHAVING CREAM DIVISION .3. OTHER BRANDS 6.2.2.3. VISION AND FUTURE GROWTH 4. PRODUCT DETAILS 4.1.5. COLGATE-PALMOLIVE 5.5. PROCTOR & GAMBLE 5. INDUSTRY ANALYSIS 5.4. SALES 3. GILLETTE S STRATEGY IN INDIA 3.IIM Indore Group 6 Section B 1. INTRODUCTION OF PROJECT 3.2.3. FINANCIAL ANALYSIS 4. FOUNDATION OF GILLETTE INDIA 3. ANALYSIS OF GILLETTE 4.2.

2.PHASE 1: 7. PROMOTION 7. PLACE 6.3.3. RESEARCH OBJECTIVE 7.4. PLAYING WITH THE PLC: 7. DATA COLLECTION .2. RECOMMENDATION AND CONCLUSION 7.1.4.1. GILLETTE S RANGE OF SHAVING GELS AND FOAMS 6.1.2.2. PROBLEM OR OPPORTUNITY 7.4.1.5. GILLETTE SHAVING GEL .3. IMPLEMENTATION 7.3.4.2. RESEARCH DESIGN 7.3. RESEARCH APPROACH 7. PROMOTION 7.AN INSIGHT 6.5.1. MARKET RESEARCH 7. FUTURE CHALLENGES 9. RESEARCH QUESTION 7.5.4.3.1.1.2. CONTINUE WITH UPGRADATION 8.1. MARKETING PLAN FOR SHAVING CREAM Group 6 Section B 20 20 20 22 24 25 26 28 28 28 28 28 28 29 29 31 31 31 32 32 36 36 37 37 38 38 40 41 . GILLETTE PRODUCTS IN THE SHAVING CREAM/GEL/FOAM DEPARTMENT 6. PRODUCT 6.4.2. LAUNCH GILLETTE SHAVING CREAM 7.1. DATA PROCESSING 7.5.5.2. RESEARCH TACTICS 7.2. SALES AND MARKETING 7.5. RESEARCH BOUNDARIES 7.IIM Indore 6. RESEARCH PURPOSE 7. PRICE 6.1.5.5.1. PHASE 2: FINAL SURVEY 7.

BALANCE SHEET ANALYSIS 10.5.1.5. ORGANIZATIONAL STRUCTURE 10.1. MARKETING OBJECTIVES 9.1. COMPETITOR S ANALYSIS Group 6 Section B 41 41 41 42 42 42 42 42 43 43 44 46 46 46 46 48 48 50 50 52 54 56 57 57 57 61 63 64 65 67 .5. PRICING 9.3.4. FUTURE OUTLOOK WITH SHAVING CREAM (WHERE WE WILL HEAD?) 9. SWOT ANALYSIS 10. CASH FLOW ANALYSIS 10.5.1.1. COMPARATIVE ANALYSIS 10.5.4. PRODUCT PORTFOLIO 10.4.4.5.1.4. PRODUCT AND SERVICE 9.2. REAL POSITIONING 9.2. PROFIT & LOSS ANALYSIS 10. MARKETING STRATEGY 9. APPENDIX 10.1. MARKETING AUDIT 9.5. SEGMENTATION 9.2.3.6. MARKETING MIX 9.3.2. PSYCHOLOGICAL POSITIONING 9. TARGET CUSTOMERS AND THEIR NEEDS 9.3.3. MARKETING MISSION 9. STRATEGIC PRIORITIES 9.6. POSITIONING 9.IIM Indore 9.1.3. VALUATION 10.5.2. INDUSTRY OUTLOOK 9.5.2.4. SHARE HOLDING PATTERN 10.1.4.5. GILLETTETIMELINE 10.2.5.4. PROMOTION 10.1. FINANCIAL ANALYSIS 10.5.2. GILLETTE S CURRENT POSITION (WHERE WE ARE AND WHERE WE ARE HEADING??) 9.2.

PRICE SENSITIVITY IN SHAVING CREAM/GEL/FOAM MARKET 10. AVERAGE ATTITUDE PERCEPTION SCORE OF EACH BRAND 10.11.22. BRAND PREFERENCE BASED ON INDIVIDUAL ATTITUDE SCORE 10.16.5. HLL 10.20.19. SHAVING PRODUCT PREFERENCE 10.21. OTHER COMPETITORS 10.1.18.6.15.6. PLACE OF BUYING 10.7. FOCUS GROUP DISCUSSION FORMAT 10. GODREJ 10. FISHBEIN ANALYSIS 10. FACTOR ANALYSIS 10.6. BRAND SATISFACTION OF GILLETTE 10.8. PERCEPTUAL MAPPING 10.13. CUSTOMER SURVEY QUESTIONNAIRE 10. PROCTOR & GAMBLE 10.9.3. AGE PROFILE OF SAMPLE POPULATION 10.17. USER PREFERENCE 10.6.12.6.4. RECALL PATTERN 10. COLGATE PALMOLIVE 10.2.14.IIM Indore 10. BRAND LOYALTY IN SHAVING CREAM/GEL/FOAM MARKET 10.10. CLUSTER ANALYSIS Group 6 Section B 67 67 68 68 69 70 75 79 79 80 80 81 81 81 82 83 83 84 84 87 90 .

Gillette with its wide range of products caters to the premium segment of the men s grooming market. This project aims at identifying the problems faced by Gillette in the shaving preparation market. With the intense competition Gillette has to cater to the various needs of the consumers. Gillette faces intense competition in the shaving preparations market (shaving gel/foam/cream) whereas the competition in the razor market is not that intense. .IIM Indore Group 6 Section B 1. Through the project we have found an opportunity for Gillette India in the shaving cream segment which is the biggest segment in Indian shaving preparation market and Gillette has no presence in it. Executive Summary Gillette has been the leading brand in men s grooming industry in India and across the globe. The research we conducted also supports this fact. We have suggested a marketing plan for Gillette Shaving Cream along with other suggestions for Gillette to face the competition in the near future and the long run.

Our analysis has revealed that the consumer is satisfied with the brand Gillette and its attributes. We analyzed the questionnaire and the FGD to create an extensive questionnaire understanding the buying behavior of consumers of Gillette Shaving gel/foam and other brands. We further extended the study to understand the perceptual mapping of brands. To understand the former part. gel and foam. We had a Fishbein analysis done on the 84 respondents from Indore to identify how much of buying intension is due to attributes and how much due to influence by referrals. Introduction of project The objective of the study is to understand the consumer attitude and buying behavior for Gillette Shaving Gel And Foam. However Gillette has not performed well with the customers who are slightly price sensitive.IIM Indore Group 6 Section B 2. . we created a focused group questionnaire and conducted a focused Group Discussion (FGD) on Shaving Cream. This following detailed analysis is presented in our assignment.

the company came out with an IPO for raising Rs 26 million to fund the setting up of its plant at Bhiwadi in Rajasthan. Ltd. It also started distributing Oral B toothbrushes.1) owns a majority stake in Gillette India. Gillette India manufactures and markets Gillette Grooming Products and distributes Oral B and Duracell products. with the company. and Vanity Cosmetic Ltd.S. 200 million stainless steel razor blades per annum in the starting. promoted it.A. During the mid-nineties. it has also entered the women's shaving product segment.. U. Company placed a plant for the manufacture in the first phase. are wholly owned subsidiaries of the Company. Sheen Dental Products Ltd. House of Poddar Enterprise (HOPE) and Gillette Company.. and Wilkinson Sword India Ltd. More than 60 % of the products sold in India are locally manufactured by Gillette India. History of Gillette Foundation of Gillette India Gillette India was incorporated on 9th February 1984 at Rajasthan. Company also merged Duracell (India) Pvt. (Gillette). Gillette Sensor Excel shaving system.. Company entered into a foreign collaboration agreement with HOPE for setting up of a company for the manufacture of stainless steel razor blades in which Gillette agreed to subscribe 24% of the equity capital. Duracell range of batteries and Luxor and Parker pens. Klosershav Products Ltd. deodorants. Ejtek Super Platinum and the stainless brand 7 O'Clock Ejtek Super Stainless. etc. 3. 7O'Clock Ready-II shaver. by acquiring the entire share capital of that company. This agreement provided technical collaboration by Gillette over the full range of technical know-how and technical assistance for the manufacture of razor blades. In . Company took over Sharpedge Ltd..1. Company introduced new twin blade shaving system called 7 O'Clock Ejtek P II with platinum enriched edges in 1987 and changed the shaving system in the India. the company's product range widened with new products being introduced in the market namely.IIM Indore Group 6 Section B 3. section 10. Gillette Presto ready shaver. Gillette enhanced its range in men s shaving products. In 1985. Sabre Pens Ltd. Blades manufactured by the Company were of two types.. razors and shaving systems. Parent company Gillette (Refer Time Line. Gillette shave gel. the premium 7 O'Clock. conditioners.

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by segmenting the market with offerings at different price points .IIM Indore Group 6 Section B 1998. 2004 on 9. Instead of going head-on against them in this highly price-sensitive market.a business dominated by the Malhotras.22 crores for the 12 months ended December 31.73 per cent growth in sales at Rs 446. ISPL has chosen to focus on premium products. 3. and then gradually move them towards even more premium products. But operating profit margins of the merged entity has dropped to 12.57 crores. Sales Gillette India's sales jumped 106 per cent to Rs 516.3. Presently Gillette India Ltd today announced 36.6 per cent higher net profit at Rs 61. Sensor and Mach III. the company decided that it would use Gillette as its pre-eminent brand placing it ahead of the 7O'Clock brand. This suggests that the merging companies have far lower levels of profitability than Gillette India. .9 per cent in 2000.3 per cent in 1999. with brands like Topaz and Panama.80 crores after the addition of new businesses from the merged companies. As a result.7 O'Clock. Also. ISPL offers a continuing upgrade path for users. The strategy has been to bring more people into the twin-edged segment.2. from 19. Gillette s Strategy in India The Indian shaving products market is characterized by a 97% share of double-edged blades . Gillette India's operating profits rose by a lower 38 per cent to Rs 67.16 crore. 3.

Structure Post Gillette P&G merger.4.06 relocated its headquarters from Gurgaon to P&G Plaza in Mumbai. Gillette has adopted the organisation structure of P&G 2006 onwards and effective July 1. MDOs develop market strategies to build business based on local knowledge and GBS bring . which will house all P&G subsidiaries in India.3.Gillette moved from business units based on geographic regions to GBUs based on product lines. MDO(Market Development Organization)and GBS(Global Business Services). P&Gs organizational structure is broadly divided into three heads: GBU(Global Business Unit).

Gillette Sensor & Sensor Excel shaving systems which met with an excellent consumer and trade response. Company has strong presence in shaving razor blades market.5. Company has strong diversified portfolio to increase its male personal products coverage. 3.IIM Indore Group 6 Section B together business activities such as accounting. tooth brushes under the well known international brand name Oral-B. The present structure of P&G is shown in the section 10. human resource systems. Gillette India has a wider portfolio of core business of shaving products sold under Gillette. Readyshaver under the Brand 7 O'Clock Ready II.4 for product line) . 7 O'Clock Ejtek P II shaving system with a metal spine and a shave cream in three variants. new generation triple blade shaving system Mach3Turbo etc. order management and information technology.3. Company has tied up with Rediff-on-the-Net e-commerce to market its product and increase its customer base.(Section 10. Gillette Shave Foam. Gillette Aerosol" shaving cream. Battery and flashlights business and oral care products (Oral B). Gillette Presto Readyshaver. Product Details Company Manufacture stainless steel razor blades. Company also entered into ladies personal care segment with the launch of the Gillette Sensor Excel for women. 7 0 Clock and Wilkinson brands. thus making it cost-effective. It has the premium quality 7 O'Clock Ejtek shaving brush.

Over the next 2 years.1. 4. battery.8% in 1997 to 14. Vision and Future Growth The company s vision is to build total brand value by innovating to deliver consumer value and customer relationship faster.2. This further declined to less than 1% in the year 2001.0% in 2000. Restructuring in 2002-03 brought about a major . Further. blades and razors and stationery business. As a result of its restructuring program. This vision statement has led to the development and introduction of various newer products especially in male grooming division and adoption of a more customer oriented approach. The company witnessed tremendous growth during the later half of 1990s. operating margin declined from 19.82 crores in 2003. company has been growing at a steady rate which has resulted in increased valuation of the company. the company reported net profit of Rs 44. Net sales increased from Rs 107 crores in 1997 to Rs 477 crores in 2000 representing a growth rate (CAGR) of 45 %. CAGR for net profits over the same period was over 50%. However. better and more effectively than its competitors. Gillette concentrated on reducing overheads and better working capital management to increase profitability. Gillette has been following a strategy of inorganic growth by acquiring domestic companies in oral care.IIM Indore Group 6 Section B 4. Analysis of Gillette Financial Analysis Since its entry into India market in 1984. Similarly. Since then. 4. This poor financial performance forced the company to undertake a major restructuring program. negative sales growth and increased expenses led to a net loss of Rs 28 crores in 2001.

It started focusing on the . The company decided to disassociate itself from nonprofitable and nonstrategic businesses to focus on profitable businesses.shift in the future strategy of the company.

5 for Financial Analysis) 4. penetration of cable television into the smallest of Indian towns has led to an increased awareness of latest lifestyle trends and brands. Oral care segment contributed approximately 13% of company s revenues in 2006 as against only 7% a year ago. is the market leader in the male grooming division and is expanding very aggressively into female grooming business through introduction of products such as wet shaving products and hair expiation devices.IIM Indore Group 6 Section B grooming and oral care business and exited the battery (except Duracell) and household appliances activities. In 2004. Thus. External Forces The external environmental factors in terms of increasing purchasing power of the Indian consumers and a high level of interest in personal grooming amongst Indian men and a strong focus of the company to create awareness for technologically advanced products have resulted in signs of growth in the triple blade and twin blade systems. Gillette currently. Further.3. demand for personal grooming products are expected to grow at a rate higher than the rise in income levels of people. The company is also focusing on exploring ways to capture the expanding oral care segment in the near future. since the market is still driven largely by price and . trade friendly policies and improvement in infrastructure have resulted in a steady inflow of global investments into the Indian market which has again resulted in higher income levels due to increased employment opportunities and sustained economic boom. The Government's continued focus on liberalization. Gillette came up with new and improved products like Mach3 Turbo and New Vector Plus to cater to the increasing needs of this section of the market. This increased demand has led to higher sales growth especially in personal grooming division. it can be said that due to higher income elasticity of demand. which have become an aspiration for many consumers. This increased awareness coupled with the increase in disposable incomes has led to a desire to upgrade lifestyles through owning and using better quality brands. (Section 10. However.

consumers might not value the potential benefit of paying higher prices for better and safer products. .IIM Indore Group 6 Section B not quality (typically in rural markets and smaller towns).

current consumption is still below many countries in Asia which shows that there are further growth opportunities. Personal Grooming Industry An Outlook Industry Analysis Due to increased awareness and rising income levels.2. Competitor analysis 5. Colgate-Palmolive Colgate-Palmolive is one of the largest companies in the FMCG sector. The Company has launch of its International Palmolive Shave Gel and Palmolive Shave Foam in the year 2000. the industry is growing at a decent rate but still is at an infant stage and this offers great opportunities to players like Gillette and Colgate Palmolive to expand their customer base to include higher number of lower middle class people and thereby increase their revenues and profitability. in 2003. systems 15% and disposables 7%. Razor blade market has tripled from Rs 2 billion in 1986 to Rs 6 billion in 2006. However. with Gillette having the largest market share.1. the industry is expected to undergo a major shift from traditional double-edged razors segment to twin and triple blades razors segment. Within the industry. market size of men's personal care segment is estimated at approximately Rs 750 crores. As per AC Nielsen/ORG's estimates. in response to growing consumer interest in skin conditioning benefits. the domestic shaving preparations market in 2003 was pegged at Rs 1. The Chairman of Indian .1. Thus.IIM Indore Group 6 Section B 5. 5. cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. In value terms. In 2004. 5. double-edged blades comprised 78%.2.5 billion.

Colpal has shaving products under the brand name Palmolive shaving cream. It has three variants in the shaving cream/gel/foam category. Every year. they intended to take 3-4 initiatives.Operations mentioned that the company s strategy for Personal Care is to remain in top niches. They are shown below: .

2.1) Weight (gms) 70 70 70 Price (Rs. USA operates in India through three entities.6. . Old Spice. In the shaving cream/gel/foam category it has a very strong brand in the market.IIM Indore Colgate-Palmolive s Shaving Cream/Gel/Foam: Group 6 Section B The Price of each of these products is mentioned with size of the pack in the table below Product Palmolive Lime Palmolive Moisturizer Palmolive Delux (Section 10.2. which is focused on Anticold (Vicks). Proctor & Gamble Proctor & Gamble. and Feminine Hygiene (Whisper).) 37 39 39 5. 65% subsidiary Procter & Gamble Hygiene & Healthcare (PGHH).

) 110 50 45 It can be observed from the table that even the Old Spice Cream is priced higher than the premium products of other competitive brands. These three categories are shown in the form of a tree below.6. gel and foam category. gel and foam products are mentioned in the table below: Product Old Spice Foam Old Spice Gel Old Spice Cream Quantity 200 ml 60 gm 70 gm Price (Rs.2) .IIM Indore Group 6 Section B Old Spice has products in each of the cream. Proctor & Gamble s Shaving Cream/Gel/Foam: The prices of Old Spice shaving cream.(Section 10.

which is now called as Hindustan Unilever Limited.3. is a subsidiary of Unilever (USA). HLL enjoys commanding position in many FMCG products in Indian market.IIM Indore Group 6 Section B 5. HLL Hindustan Lever Limited. With this massive distribution network in place. With the help of the its distribution system these brands have a deeper reach to the Indian consumers. It is also reputed to be the largest exporter of India. . It is also very similar to that of Old Spice shaving cream. It s distribution network is very strong. In the Shaving Cream/Gel/Foam category also HLL has two brands. These brands are shown in the tree below: HLL s Shaving Cream/Gel/Foam: The pricing of shaving products by HLL for both Axe and Denim is almost same. It has over 2000 suppliers and associates and about 7000 redistribution stockists. But HLL does not have any product in the gel or foam category to compete brands like Old Spice and Gillette. It is the largest FMCG company in India. Both of them are very strong brands in the Indian market.

Fa is offering 30% extra shaving cream (21gms) with 70 gms pack. The price of these two is shown in the table below.5. Product Fa Oceanic Fa Dynamic (Section 10.3) Weight (gms) 70 70 Price (Rs.5) Quantity (gms) 70+21 70+21 Price (Rs. Godrej Godrej is a domestic brand of shaving cream and now it is looking to expand in the global market for hair color and shaving creams.4) Quantity 100 gms 70 gms Price (Rs. It has two variants in the shaving cream category.IIM Indore Group 6 Section B Product Axe Shaving Cream Denim Xclusive (Section 10.6.) 40 40 .6. One observation is that even the premium shaving cream from Godrej is priced quite below (44%) below the competitors products of same quantity. Fa Fa has two shaving cream products in the market. They are Godrej Shaving Cream and Godrej Premium Shaving Cream.6.) 45 43 5.4. Product Godrej Shaving Cream Godrej Premium Shaving Cream (Section 10.) 25 25 5. Both of its products are priced exactly the same.

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5) . (Section 10.6. Other Brands Other competitive brands like Dettol and Park Avenue are also there in the market scene. These are not premium segment brands and were priced accordingly.IIM Indore Group 6 Section B 5. Whereas Park Avenues shaving cream is sold in 70gms pack for the price of Rs 36. 37. The price for their shaving cream product is mentioned below. Dettol cream which comes in 70 gms pack is currently offering 40% extra in its regular product for Rs.6.

Gillette has virtually no presence in the basic and core product categories. Gillette s range of shaving gels and foams All of Gillette s shaving gel/foam products come under the brand name Gillette Series .1. Gel. can include any additional ingredients like moisturizer. Gillette Shaving Cream Division Product Introduction Gillette has always remained the technological. This enhances the effectiveness of the razor s glide on the skin.1.1.1. However. gels are cheaper than creams. after shave and shaving gel/foam).2. Gillette worldwide and Gillette India have cited the following reasons for not launching a shaving cream and restricting itself to only shaving gel and foam: Technically speaking. 6. Weight-to-weight. Its high brand awareness. 6. Gillette products in the shaving cream/gel/foam department Gillette has a range of shaving products for different types of skins and user requirements. This means that gels have more anti-friction properties than creams. market acceptance as a technological leader for hi-performance razors and high brand equity were compelling reasons to penetrate and develop the entire value chain of the men s grooming industry (razors. Gillette has consciously not chosen to have shaving cream in its product line. All the 10 variants are in the premium segment. being a solid in a liquid. market leader in the razor division of the men s grooming segment. gels offer more lubrication than that of creams. Foams have been pre-perfected with the optimum lather required for shaving and Gillette was already a market leader in the foam segment.IIM Indore Group 6 Section B 6. 6. aloe vera. The demand for foams was on the rise due to minimal effort required on the part of the consumer. Our analysis has shown us that . vitamin E etc.

IIM Indore Group 6 Section B shaving gel/foam is more commoditized in India and that 81% of the Indian consumers use cream and not gels or foam. Gillette in the customer value hierarchy: Green Gillette Gel. POTENTIAL Moisturizing gel PRODUCT Conditioning Yellow Gillette Foam Moisturizer Sensitive EXPECTED PRODUCT Deep Cleansing Deep Cleeansing Gel BASIC PRODUCT CORE PRODUCT Ultra comfort Lemon Godrej V John Old Spice Denim Dettol Pure & Sensitive .

Gillette is the only company to have 10 product variants in this category. 1 2 3 4 5 6 FOAM Foam Conditioning Foam Deep cleansing Foam Pure and Sensitive Foam Moisturizer Foam Senitive skin Foam Lemon GEL Gel Moisturizing Gel Sensitive Skin Gel Ultra Comfort 6. First to introduce foams with no fragrance in Pure and Sensitive Brand Development Index and Category Development Index Gillette has the highest brand equity in the men s grooming industry. This segment accounts for more than half the entire market. No other competitor has even more than 5 variants.IIM Indore Group 6 Section B The customer value hierarchy shows us clearly that Gillette has no product in the basic or core category which is dominated by the creams. Gillette Shaving Gel . NO.an insight The Gillette shaving gel/foam series has been developed as a technologically superior product. The brand Gillette is more of a life style product than just a grooming product. Following are the variants in the product width: GILLETTE SERIES S. Gillette has the deepest product line and the widest product width. Gillette Series has many firsts to its credit in the Indian market: First to introduce Shaving gel in the Indian market First to include ingredients like Aloe vera and Vitamin E in its gels and foams. . So.2.

the packaging. Gillette was the first in India to introduce gels in tubes. The Gillette Series has been designed and packaged with a futuristic theme to communicate to the consumer the subtle message that only Gillette offers you the most advanced in shaving products. High . It is glossy and can rest on its cap unlike the competitor s tubes. Point of purchase plat an important role in the consumer s mind while deciding which product to buy. The shaving tube for GEL is very different in design.IIM Indore Group 6 Section B High Category Developme nt Index Low Gillette Shaving gel/foam Low Brand Development Index Packaging With shaving cream/gel perceived as a commodity by the majority in India. The FOAM series comes in metallic cylinders.

e. Gillette foam priced at Rs. All the 10 products are in the premium category ranging from Rs 53 to Rs 210 for the minimum and maximum SKUs. We shall see the competitor s prices in detail in the competitor analysis. The pricing strategy suggests that Gillette is leveraging its customer loyalty ( i. Price Gillette has 10 product variants of shaving gel/foam for the Indian market. 210 costs 60% more than OLD SPICE foam though Old Spice has the one of the best brand perceptions (and was the best in our survey). For instance. the consumers who are brand loyal to Gillette razors). FOAM VARIANTS Conditioning Deep cleansing Pure Sensitive Moisturizer Senitive skin Lemon 200 200 200 120 120 120 QUANTITY (ml) 250 250 PRICE (Rs) 210 210 210 and 250 GEL VARIANTS Moisturizing Sensitive Skin Ultra Comfort QUANTITY (gms) 60 + 20 60 + 20 60 + 20 PRICE (Rs) 53 53 53 .IIM Indore Group 6 Section B 6.3. The following table shows the Gillette Series price for all the 10 product variants. Gillette has priced its shaving gel and foams well above the industry average.

Each franchisee distributor has his own set of employees working for him. This is their distribution network for Indore: . The distribution network is a combination of own network and that of a franchisee. There are no wholesalers. Indore s distributor is called Life Science Corporation near ADLABS Mall. this is the hub and spoke model for the Mumbai hub: Indore Dadra and Nagar Haveli Aurangabad MUMBAI (HUB) Pune Panaji The distribution network in Indore: Indore is a feeder market getting its feed from Mumbai. As of now.IIM Indore Group 6 Section B 6. As told to us by the distributor in Indore. The hubs are the 20 cities. The distributor also manages his own fleet costs to supply to the retailers. Place The distribution network of Gillette is very robust. The distribution network follows a hub and spoke model. We went to the exclusive (franchisee)distributor in Indore. The spokes are the various Tier 2 and Tier 3 cities and towns around the major hub. These cities are managed by the exclusive distributors in those cities.4. Gillette India has the same distributors in the 20 cities that P&G operates with. These tier 2 and 3 cities (spokes)thus serve as a feeder market to the hubs. They have P&G s distribution network in addition to Gillette India s existing one. Every city has only one franchisee distributor.

for every week the order is taken and supplied. there is only one ad for Gillette Series Shaving Gel shown not too prominently. Promotion Gillette has made extensive promotion campaign for its razors in the Indian market and the world market.5. But for India Gillette does not have any brand ambassador as of yet though Irfan Pathan has done a couple of ads for Sensor Excel. The credit period offered is one week.IIM Indore Distributor (1) Group 6 Section B Area Sales Manager (2) Sales Representatives (4) Fleet Drivers(4) The sales representatives go with the drivers to the various Retailers under their geographic span and take orders every week. the amounts due for the previous week would be collected. For the shaving gel/products. The two sales managers have split the city into two parts for their span of control. So. Bundling Bundling has always been the norm for Shaving cream/gel products. David Beckham and Thierry Henry are a few of Gillette s global ambassadors called Gillette Champions. Tiger Woods. They are in charge of the big retailers. This is mostly due to the fact that shaving creams/gels are generally purchased together with . Gillette has co-advertised with its razors. for the shaving gel/foam there has not been much of advertisements. 6. Roger Federer. super markets etc. In fact. But.

we found that 4 of the 10 variants had the 33% free trade promotion. The foams(the ones priced at Rs 210) bundle a Gillette Sensor Excel with them occasionally. When we went to Big Bazaar for price survey. Shaving gels/foams have been bundled with Mach 3 Razors for a slightly higher price. .IIM Indore Group 6 Section B razors/aftershaves. The trade promotions include 33% extra on many variants. There is always at least one trade promotion across the 10 product variants of Gillette throughout the year. In addition to this.

7. Market Research Research Purpose 7.2.1.1. Research Question What is the inter-brand recall of shaving cream/gel/foam brands and their existing image in the consumer s mind? What is the effect of non-attribute factors on the purchasing decision of Gillette shaving gel/foam? How strong is the brand loyalty of customers towards shaving cream/gel/foam? What are the factors that play the most important role in a consumer s choice of buying shaving cream/gel/foam? .1. Research Objective 7. To understand the buying intention of Gillette shaving gel and foam users and analyze the effect of nonattribute factors To understand the brand loyalty of customers towards shaving cream/foam/gel Identify the parameters that play the most important role in a consumer s choice of buying shaving cream/gel/foam using Factor and Cluster analysis.IIM Indore Group 6 Section B 7. Map the shaving cream/gel/foam market and competitive positioning within it. specifically Gillette.1.2. 7. Problem or opportunity Gauge brand recall for various shaving cream/gel/foam brands.

Research Boundaries The research was conducted in Indore and the respondents were chosen on the basis of their usage of shaving cream/gel/foam.2. .2.7.

1.3.3. products of Gillette organizational structure the competitors in the market the strategy adopted by Gillette and its competitors in the market. . Research Design 7.IIM Indore Group 6 Section B 7. Research Approach Exploratory Problem Research Causes of the problem Descriptive research Causes of the problem Phase One -> Secondary Data The group in the initial phase of the project focused on secondary data collection. The data collection primarily focused on history of Gillette the financial results of Gillette.

The purpose here was to get an accurate snapshot of particular aspect of the market environment hence the pilot study was a descriptive research that identified all possible problems and factors influencing buyer behavior. The questionnaire was designed to capture both quantitative and qualitative information. Phase Three -> Questionnaire From the results of FGDs. the influencers etc which further helped in preparation of the questionnaire. hard to analyze variables etc were removed so that people could easily fill in the questionnaire.IIM Indore Group 6 Section B The secondary data collected in the first phase of the project helped the group in getting better understanding of the shaving cream/gel/foam market and the various brands competing in this market. From the analysis. A group of 3 people and a group of 6 people were used for the two FGDs. the final questionnaire was formed. FGDs also helped the group in understanding the buying behavior. The overall design of questionnaire has tried to capture data in the following areas: To answer the question of what are the predominant constituents of shaving cream/gel/foam consumers in terms of: Profile and age Buying Behavior and Decision-making process and to answer how Gillette compares with competition and what should it be targeting to be able to grow Relative importance of different attributes Brand awareness and preference Brand switching behavior/ Brand Loyalty . Phase Two -> FGD After the secondary data collection was complete. Through these FGDs. the various attributes that a person looks for in the shaving cream/gel/foam were listed down. two focused group discussions were done. the redundant variables. An analysis of the pilot questionnaire was done. a pilot questionnaire was formed. After the pilot test. the consumption pattern.

IIM Indore

Group 6 Section B

7.3.2. Research Tactics

Questionnaire (Refer section 10.7.) Sampling Plan

The theoretical population: All people aged 16-80 in Indore who have purchased shaving cream/gel/foam. Sampling Frame: Residential areas, malls, parlors, Restaurants are places where the respondents where drew our respondents were interviewed. Relevant Sample Size: 84

7.4.

Implementation

7.4.1. Data Collection - Phase 1: FGDs The FGDs were aimed at helping us to Define the target segments better Identify the important attributes that add in the target customers shaving experience The FGD questionnaire is given in section 10.8

A preliminary definition of main two segments is: Experimenters and Adopters (EA): This category of consumer comprises of males from the age group 16-30 years. These are the people who are willing to try new brands. These people are generally found to be taking more care than others in terms of grooming. These people want to make a style statement through the products they are using and hence are generally found using highly advertized products. They tend to prefer shopping centers with a wide variety. MHI: Rs 10,000/- to Rs 20,000/-.

IIM Indore

Group 6 Section B

Suspicious Traditionalists (ST): These are men who are more traditional and not very much willing to try new brands. They are a slightly older age group (33-50 years) whose main concern is the safety and health of their skin. They also show a preference for herbal products or brands that have been present in the market place for many years and which they have already tried and tested. MHI criteria: Rs 5,000/- to Rs 20,000/-.

7.4.2. Phase 2: Final Survey The Final Survey helped us to collect data on Main influencers towards the purchase of Shaving Cream/Gel/Foam, Benefits that are most important for each segment of customers, Comparative brand and benefit perceptions, Trade-offs between price and quality, Preferred point of purchase, Consumer s position within the Needs Hierarchy Model (Awareness, Knowledge, Liking, Preference, Commitment and Conviction) with respect to own and competitive brands and consumer satisfaction.

7.4.3. Data Processing Age profile, product preference and place of purchase of the surveyed sample are mentioned in section 10.9, 10.10 and 10.11 respectively.

Data Analysis Brand Recall: A sample of customers, which is representative of the Indore population, was surveyed and the first unaided recall of the Shaving Cream/Gel/Foam brands by these customers was recorded. (Refer section 10.12)

IIM Indore

Group 6 Section B

It was observed that Gillette Shaving Gel/ Foam had the highest brand recall amongst all the competing brand of shaving cream/gel/foam. This can be attributed to various reasons like brand perception, usage pattern, advertisement expenditure etc. some of which would be analyzed in the subsequent sections.

Buying Intention The survey administered had questions which measured the importance of various attributes like price, brand image, fragrance, offers & discounts of various shaving cream/gel/foam and specifically for Gillette shaving gel/foam.

Fishbein Analysis The survey also measured the attribute scores for other competing brands like Old Spice, Denim, Godrej, V-John and Dettol. Along with the data for Gillette, an average attribute score was computed across the 84 samples for each attribute for each of the shampoo brands. Fishbein analysis was performed by converting the Likert scale from 1 to 5 to -2 to 2. Consumer s attitude about each brand was calculated and plotted as shown below. (Section 10.17, 10.18, 10.19, 10.20)

Chart: Consumer attitude about each brand

IIM Indore

Group 6 Section B

Clearly Old Spice had the highest consumer perception score followed by Gillette and Denim. But taking a look at individual consumer attitude score, we found that Gillette was prefferred by almost 40% of the people surveyed and Old Spice by 30%.

Factor Analysis A factor analysis was carried out to obtain the group of attributes which can be grouped together. Hence 4 factors were obtained as follows Factor 1 Product attributes (Fragrance, Brand Name, Foam Formation, Antiseptic Attributes and Ease of Use) Factor 2 Price Sensitivity (Price, It keeps my Skin Soft And Offers/Discounts) Factor 3 Point of Purchase (Availability in Stores and Stylish Package Design) Factor 4 Additional Features (Color of Shaving cream/gel/foam and Ingredients)

Perceptual Maps Attribute scores were averaged under each factor for each of the Shaving cream/gel/foam. Then graphs were plotted (Refer section 10.21) for the perceptual map along the dimensions as shown.

Observations: In Indore, the surveyed samples perceive that Gillette primarily targets consumers which are more focused on the product attributes like brand, foam formation, ease of use etc whereas the perception of price sensitive consumer towards Gillette was found to be of an over priced brand. For price sensitive customers products like V-John, Godrej and Dettol were more satisfying than Gillette. The surveyed sample considered Gillette to have the best packaging among all the brands. This feature highlights the fact that point of purchase is an

Although not much differentiation can be introduced in the product per se (low satisfaction scores for all brands). Price sensitivity measured along the lines of a hypothetical price increase in their preferred shaving cream/gel/foam brand was around 43%. it can be concluded that the Brand loyalty in the Shaving cream/gel/foam segment is only 57% where customers would stick to it irrespective of the availability in the place where they are accustomed to shop. provided it s a reasonable price hike whereas 43% would move to some other brand. three and four clusters separately. the group performed Cluster analysis for two. Brand Loyalty The questionnaire had specific questions to measure the brand loyalty for the brand that the consumer was using at that point of time.) Cluster Analysis On the basis of the four factors identified through factor analysis.15. This figure indicates that 57% of the customers do not shift from their preferred brand to some other brand because of a price hike in their preferred brand. conditioner etc. This figure says that 57% of the customers would rather go to some other retailer in search for their preferred shaving cream/gel/foam brand than to buy some other brand from the same shop. Distance matrix analysis shows that the consumers are most satisfied with Gillette in all the cases except when the purchasing decision is based on price along with additional features. From the graphs shown. (Refer section 10. High satisfaction in the availability in stores further shows the robust distribution system that Gillette has put into place to cater to diversified markets. still Gillette is found to be seen as a brand which brings out products with new features like lemon. This was done to identify a .IIM Indore Group 6 Section B important selling point for the shaving cream/gel/foam market and Gillette has been outperforming the competitors.

IIM Indore Group 6 Section B market segment which Gillette should focus on in the near future especially if it decides to launch a product in shaving cream category. Recommendation And Conclusion 7. Cluster 1 is most price sensitive and values additional features the least. This segment comprised of more than forty percent of the survey sample. Considering this to be a reasonable estimation of the real usage.5. So targeting this cluster will not be a strategically appropriate decision. 7. Gillette through its shaving gel and foam series is currently catering to this segment. As Gillette is a premium brand which focuses on differentiating its products from the competitors and upgrading the customers in the value chain.22) The population can be segmented into three segments on the basis of factors. The output of cluster analysis is shown in section 10. This cluster comprised of one third of our sample size.5. (Refer section 10. Gillette can target this segment with the introduction of shaving cream which will be dealt with in the marketing plan of the report. Cluster 2 is more influenced by attributes of the products and is not a price sensitive segment. additional features as well as price. . This segment comprised of more than one fourth of the survey sample. Out of the three analysis performed the one with three clusters was giving the best representation of the segments in which the market can be divided. PLAYING WITH THE PLC: Gillette has the widest product range and the deepest product line in the men s grooming market.1. Cluster 3 is concerned about the attributes. This is a double edged sword because of the variety Gillette can offer and the cannibalization that can occur. 55% of the sample used shaving cream. the decision to enter the shaving cream market seems to be a lucrative option to explore.22.

IIM Indore Group 6 Section B Gillette .2. This is because we should entice only the existing cream consumers and not the gel/foam users. PROMOTION One important finding of our FGDs and Consumer Survey was that not a single consumer was aware of the fact that Gillette has 9 variants in the shaving gel/foam category alone.with its 9 existing product variants and the new shaving cream. The potential is huge and the shaving cream can also be launched in other similar market demographies like Bangladesh. Srilanka and states like Orissa. For example. . The shaving cream would have slightly stripped down attributes of the gel and foam variants.cluster and factor analyses support the idea.5. these products can be promoted aggressively in neighbouring countries like Bangladesh. But the category development is pretty low. Our Fishbein analysis. perception mapping . the regular foam and Gillette 7 o clock regular razor are on the maturity/decline stagein the metropolitan cities. Nepal and Srilanka. Having so many product variants would be an unbeatable advantage in upgrading the consumer throughout his lifetime and also making him brand loyal in the process 7. Bihar and the North East and can have a revitalization and an extended maturity phase.3. By launching Gillette shaving Cream. Without much effort. has to see that it can extend the product life cycle and the individual stages of each of the 10 products.5. LAUNCH GILLETTE SHAVING CREAM This has been the main finding of our project. Pakistan. 7. Gillette would have a brand leader or a fighter brand in every stage of the customer value hierarchy. This can be attributed to one or more of the following reasons: The brand equity of Gillette is very high (57% TOMR in our study).

Gillette has spent on advertisements only for the razors and not on shaving gel/foam or aftershaves. Though there are 9 variants. SALES AND MARKETING Currently. Gillette India uses only the distribution network of P&G.IIM Indore Group 6 Section B The consumers have low involvement and do not search for information. trade promotions etc. promotions have to be done on a bigger scale than what is currently been done. to increase customer loyalty and repeat purchase. This implies that shaving cream/gel/foam is more of a commodity. CONTINUE WITH UPGRADATION Gillette has been very successful in its strategy of upgrading the consumer in the razor segment. Bangladesh and Nepal. Some initiatives by Gillette: ADVANTAGE GILLETTE: Three Gillette winners from India were sent to the finals of the 2006 Wimbledon GILLETTE GULLY CRICKET: Gillette cleverly combined cricket and youth in this version of street cricket in which the winners were awarded Rs 1 lakh. especially in Srilanka. . P&G s sales and marketing knowledge can be utilized by Gillette to great extent in the future.4. 7. there has been no effort made to communicate to the consumer of the superior quality and attributes. attributes which the consumer can relate to. technologically superior products and phasing their PLC very well. Hence the information available to public is limited.5.5. But sadly. In short. The promotions should have more of a pull effect in the advertisements that communicate not just the price and offers/discounts but also the values. Gillette has made sure that it makes its consumers move up the product chain by introducing new.5. this approach is missing in the shaving gel/foam segment. 7. To decommoditize the category. more information has to be communicated to the consumer through ads.

This upgradation has 2 main advantages: We can fully leverage the Product life cycle and the individual phases of the products in different markets We can make the consumer loyal to the brand over his lifetime. we suggest that Gillette adopt its upgrading the consumer strategy for the shaving preparation segment also. .IIM Indore Group 6 Section B Hence.

Gillette s market share might not grow as good as their competitor HLL and Old Spice. . So. shaving cream accounts for roughly 80% of the market and Gillette has a very weak presence in the cream segment. Hence.IIM Indore Group 6 Section B 8. To match the increased demand patterns in the country. Competitors like Denim. Future challenges Introduce a product which would be designed specifically for Indian consumer and satisfy aspiration of youths. Gillette s products are descending the customer value hierarchy from that of a potential product towards an expected product. It is also highly likely that Gillette may not fully absorb the consumers who upgrade from shaving cream to gel or foam. Axe are moving up the hierarchy. Launching of innovative products in regular and short intervals First and foremost. It s only cream product 7 o Clock Shaving cream has been a big flop. Gillette will find it tough to charge the premium it has till now charged.

Gillette s major challenge lies in entering the mass market through a shaving cream the way it successfully did with razors. .

1. Industry Outlook Shaving preparations and after-shaves market stood at Rs 125 crores in 2003. Marketing Audit 9. the current market size is Rs 163 crores. the current market size of shaving cream in 2007 is around Rs 114 crores. Rs 101 crores.1. 9.1. Marketing Plan for Shaving Cream After conducting industry and competitor analysis of personal grooming industry and understanding the product portfolio of Gillette.1. Since. we can say that the share of shaving cream in the entire market has fallen down to approximately 70%. Most of these sales were driven by gel and foam products.IIM Indore Group 6 Section B 9. the market share of gel and foam products is increasing at a very rapid pace (from 10% in 2000 to 19% in 2003). shaving creams constituted 81% of the market i. 9. 7 O clock. Gillette had 17% market share in the shaving preparations market which gives a turnover of approximately Rs 21 crores. Suggested below is the marketing plan for the introduction of the new product. the group came to the conclusion that Gillette should enter the shaving cream market more aggressively with a new brand immediately. Thus. In 2003.2. Gillette s current position (Where we are and where we are heading??) In 2003. . Considering a YOY growth of around 7%.e.

Although Gillette has been able to increase its share in gel and foam products. to become a market leader in the entire shaving preparations market. Thus.Gillette s only brand in the shaving cream market was not very successful and therefore. the situation has not changed much. we can say that Rs 101 crores market remained tapped by the company. . Gillette can not continue to ignore the shaving creams market. Even in 2003. shaving cream market worth Rs 114 crores remain more or less untapped.

Target Customers and their needs The primary customers of the company will be those belonging to cluster 3 (Refer Cluster Analysis for details).3.3. Future Outlook with shaving cream (Where we will head?) The introduction of a shaving cream with improved attributes will directly compete with current products like Axe. 9.2.1. Strategic Priorities This step involves portfolio analysis of company s products in the market. This cluster accounts for almost 40% of the entire market.1. Within this particular division. Marketing Mission 9. majority of the sales come from its razors division.2. . This will enable the company to establish its hold over the Rs 114 crores shaving preparations market.2. Denim etc. Marketing Objectives Gillette should target to capture around 6-8% of the entire shavings cream market which means revenue of approximately Rs 7-9 crores in the first year. These customers are concerned about the attribute and additional features besides price. 9.2. There will not be any product cannibalization (with 7 O clock) as both cater to different segments within the shaving preparations market. Gillette is an undisputed leader in this sub segment. The brands like Axe and Denim can be said to be catering to the needs of this cluster. 9. Company derives almost 80% of its revenues and 90% of its profits from Personal Grooming division.IIM Indore Group 6 Section B 9.

company leads in the market for gel and foam products. Thus.Similarly. Today s business is driven by this two sub segments. .

Price sensitivity. importance of attributes. there was decline in the profit figures from this division by approximately 60%.IIM Indore Group 6 Section B In the future.4. Segment One-> is most price sensitive and values additional features the least. However. targeting this segment will not be a strategically appropriate decision.4. Gillette still needs to concentrate on its two major sub segments for regular cash flows. Segmentation In the shaving cream/foam/gel market there exist different categories of customers who have different needs and are willing to pay different amount for the product that meets their demand. Introduction of shaving cream would help Gillette identify the needs of the customers and take advantage of the segment which has not yet been targeted by the company. The company can consider divesting this segment to direct its investments to Oral Care and the new shavings cream product. Gillette s portable power business has been facing stiff competition from the alkaline batteries in the market. Oral Care business has shown volatile performance over the years and thereby. the new product in the shavings cream market can also become tomorrow s breadwinner for the company. As Gillette is a premium brand which focuses on differentiating its products from the competitors and upgrading the customers in the value chain. Gillette through its shaving gel and foam series is . This segment has one third of our sample size. point of purchase decision makers and customers influenced by additional features are the factors on which we will segment the shaving cream market. And in fact. has led to irregular cash flows. This division grew by only 4% in terms of revenues in the year 2005-06. Segment Two-> is more influenced by attributes of the products and is not a price sensitive segment. 9. Marketing Strategy 9.1.

Competitor Brands:. Gillette through its shaving cream can enter this segment. It keeps my Skin Soft And Offers/Discounts) Factor 3 Point of Purchase (Availability in Stores and Stylish Package Design) Factor 4 Additional Features (Color of Shaving cream/gel/foam and Ingredients) Customer Evaluation:.4.The competitor brands have been discussed in section 5. This segment has more than one fourth of the survey sample.21 shows how the customers evaluate Gillette with respect to competitive brands.4. The Gillette Shaving Cream will be competing with brands like Old Spice and Denim. Foam Formation. Positioning Market research Market research results have been analyzed in section 7 of the report. This segment comprised of more than forty percent of the survey sample. Choice Criteria:.The target market has been identified as the customers who are concerned about the attributes of the shaving cream but are not willing to shift from the current price band to a higher price band.Perceptual maps in the section 10. . Antiseptic Attributes and Ease of Use) Factor 2 Price Sensitivity (Price.IIM Indore Group 6 Section B currently catering to this segment.2.As per our findings (Section 7. Brand Name. 9. The following conclusions from the survey helps us in identifying the positioning of the Gillette shaving cream: Target market:.3) the 4 factors on grouping attributes post factor analysis that contribute to the shaving cream/foam/gel purchase decision are: Factor 1 Product attributes (Fragrance. Segment three-> is concerned about the attributes. additional features as well as price.

In factor 3. Old Spice and Denim are its closest competitors in factor one and two respectively. all companies have below satisfaction level performance which implies that the variants introduced in the market for shaving cream/gel/foam are not able to satisfy the demand of the consumers. Gillette shaving cream needs to position itself above Old Spice and Denim in order to attract the target segment. . Gillette lags behind all its competitors in factor 2 which includes price and offers. Positioning Strategy The present perception of the brands between factors one and two is shown below. additional features.IIM Indore Group 6 Section B The customers surveyed in Indore found Gillette to be significant along both factor 1 and factor 3 giving it an image of high quality brand with attractive packaging and best availability.

Real Positioning In the survey conducted.4. 9.5.5. it also .3. Product and Service Customer value hierarchy chart in the 4 P s analysis shows that Gillette products (7 O clock) is currently fulfilling only the core and basic needs to some extent. This shows that Gillette has an excellent real positioning in the men s grooming market and Gillette shaving cream can leverage this positioning in the target market.4.4.1. This will be consistent with its strategy of moving the customers up the value chain. Gillette had the top of the mind recall of 57%. Psychological Positioning Gillette shaving cream will primarily alter the attributes importance in the target segment by increasing the importance of attributes like brand name. foam formation etc and decreasing the importance of price.IIM Indore Group 6 Section B 9. Further. Marketing Mix 9. 9.

initially. Gillette has only followed a dumping strategy in India with very little customization. So. the customer values promised and delivered would also be different from that of the premium segment. Social Value: The espoused social value would be from the angle that everyone in the family and society have an instant respect and admiration for the clean shaven Gillette man.IIM Indore Group 6 Section B shows that Gillette does not have any product fulfilling the basic needs and expected needs of the consumers. lather etc. it has to be very strong on attributes. not so loyal segment of the market.) . since. We would price our Cream at Rs 40 which is below that of Old Spice and Denim (Rs 43). the product shall be launched with variants like lemon and musk. Again. The customer values to be promised and delivered by the new GILLETTE Shaving Cream are: Functional value: The utilitarian/functional promise would be The best possible shave from the best Shaving cream . our new product will cater to these needs. The new Gillette Cream would target the basic and core product consumers where Gillette has no presence so far. Epistemic value: . Our new product will have superior fragrance and higher antiseptic attributes. Further. This is important because we have to reach a larger. We would also promise the basic attributes ( soft on skin. Emotional value: The emotional value promised is of great importance for a commoditized product like a shaving cream. our new product will target the third cluster. The focus would be to indianise the product. The espoused value would be the charming yet masculine Gillette man who is attractive to all the people including women. So far. Thus. The existing price range in the market for a 70 g shaving cream is Rs 25 (Godrej) to Rs 45 (Old Spice). additional features need to be there to satisfy the basic and expected needs of the people. price sensitive. For our new product. this strategy would not work well. Further.

tough. 9. 9.IIM Indore Group 6 Section B The novelty value should be such that it must entice only the cream users.5. As per our analysis. smart Indian and project him as the Gillette man (much like the Marlboro man). we recommend an aggressive promotional campaign for the new product. not our gel/foam users. charged up young Indian for the day s grind. The value communicated should be of a confident. we must tell about how good a cream it is and the active ingredients involved in the product. Gillette should charge a price of Rs 42 for 70ml pack. . Promotion Since we see a great opportunity for Gillette in the Shaving cream category. Hence. we plan to price our new product slightly cheaper than these brands. Pricing The customers in the target cluster are not very price sensitive. The focus would be on the shaving cream though we will also co-advertise Gillette Razors. Our ads would involve a sturdy.5.2. However. Our promotion would adopt a push cum pull strategy. since Gillette is perceived as an expensive brand as compared to its competitors. Conditional Value: The best possible start for the day would be the conditional value. COMMUNICATION OF VALUE: We would adopt a push cum pull strategy to communicate the above values. The customers in the cluster prefer brands like Axe and Denim which lie in the price range of Rs 43-45 for a 70ml pack.3. satisfied.

The selling price of the tube being Rs 40 and the margin at 25%. Our advertisement has to entice the target consumer . The increase in sales of the razors would be a good indication of the interest shown by the consumers in the new shaving cream. . Our target consumer is widespread throughout the country. This promotional strategy might also give Gillette consumers who want to upgrade themselves to the premium shaving cream category from the regular category. But the advertisements for the shaving cream have to be Indianised. Pull Approach: So far. The ads have to appeal to the customer values mentioned above. Gillette has always shown ads which are futuristic in nature ( Shaving with Mach 3 on a space shuttle is an example). We would offer a 20g tube of the Gillette Shaving Cream free with every Gillette Presto( Priced at Rs 17) and 30g with Gillette Vector ( Priced slightly at above Rs 50).IIM Indore Push Approach: Group 6 Section B The product would be pilot tested in Indore itself where we have performed our market research. urban(including Tier 2 and Tier 3 cities) and rurban.rural. The level of success of the pilot project would help us in modifying the product for the national launch. This is the biggest challenge for Gillette which has so far treated the Indian market as a dumping ground for its outdated products in the US.the aspiring consumer who comes from the middle and lower middle class and gives importance to attributes but is also price sensitive. we would incur around Rs 8 for the 20g tube and Rs 12 for the 30g tube.

These blades are cut from a template. and his keen approach to marketing.000 blades.S. 1901 -GILLETTE teams up with MIT engineer and machinist WILLIAM NICKERSON in Boston. 1905 . the forerunner of electric shavers. patent this same year.S.GILLETTE'S total sales for the new state-of-the-art safety razor reach 90. SHOCKEY receives a U. rather than forged 1903 .Timeline 1895-In the United States. it receives a U. Gillette. . used predecessor.WILLIS G. 1904 .GILLETTE begins his legendary climb to the top as king of the U. he will promote and sell this idea to backers and toolmakers in order to make his dream shaver a reality. KING CAMP GILLETTE. Appendix 10. For the next six years.IIM Indore Group 6 Section B 10. shaving market. Massachusetts. a salesman for the Baltimore Seal Company. This is a T-shaped razor which opens at the top so the user can insert a new blade after tossing out its dull.000 razors and 123. patent for his WIND-UP SAFETY RAZOR. Together. originates the idea for a new disposable razor blade.S.GILLETTE opens his first overseas office. England to market products in Europe 1910 . they modify the safety razor by manufacturing a double-edged blade that is disposable and replaceable. low price affordability.1. his total sales were 51 razors and 168 blades. In 1903. headquartered in London. thanks to his shaver s high quality. It has a wind-up-by-hand flywheel that operates for a limited amount of time.

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S. 1971 . This creates tremendous worldwide promotion and publicity opportunities for Gillette s company and products. battery.1918: WORLD WAR I .S. other inexpensive injector-type cartridges and disposable razors become available. During these two decades Gillette followed inorganic growth by acquiring domestic companies in oral care. shaving foam and linen series for . hit the market for both men and women. 1984.It gained more shares so that it had three fourth of the shares. which make them inexpensive to produce and sell. 1960 . Numerous manufacturers economically design them in simple shapes. Gillette VectorPlus.Gillette entered Indian market through a joint venture as a minority shareholder. market. then thrown away. Further in personal care segment the company has launched Storm Force after shave splash and New Ultra Comfort Shaving Gel & Gillette shaving gel.GILLETTE safety razors with long lasting stainless steel blades hit the U.Launched the 7 o clock brand 1993Launched the Presto readyshaver brand 2000. even though there have been similar razors available since the 1930s. Armed Forces. which can neither be sharpened or replaced.Launched the Mach-3 and women 2002.GILLETTE begins to aggressively market a new twin-blade razor on a wide scale.DISPOSABLE RAZORS. Gillette Mach Turbo. 2004. 1960s -70s . They are to be used 2-3 times. Later. 1986.The company launched the next generation triple blade shaving system.GILLETTE works out a mega deal with the U. which provides his safety razor and blades to every enlisted man or officer on their way to Europe as a regular part of their standard issue gear. blades and razors and stationery business.IIM Indore Group 6 Section B 1914 .

be part of the Procter & Gamble company. It eases the introduction of new products. USA. will also.IIM Indore Group 6 Section B Series Tube Shave Gel Variants. 2005The company s parent company Gillette. The company has started the process of transition from its current distributor structure to the P&G Distributors 10. The strength and quality image of these brands allows the company to charge higher prices and achieve high margins. as consumers are already well acquainted with the names and more receptive to promises of improved user experiences. namely Sensitive Skin and Moisturising to suit different skin types. USA was acquired by the Procter & Gamble Company. SWOT ANALYSIS Strengths Strong brand equity Gillette s portfolio contains well established brands such as Gillette and Braun. the company while continuing as a separate legal entity. Market Leadership The company s product are well known with a reputation of quality are also market leader in their respective segment. Well Diversified portfolio Gillette has a well-diversified portfolio in terms of product diversification and market diversification. In India. Diversification of this nature helps the company avoid the risk of overdependence on any one source for its revenue stream. Weakness Profitability highly dependent on core business . Oral-B line and Duracell. USA worldwide through merger in October 2005.2.

the company is at risk of adversely affecting its business. With a large part of its revenues originating from a single costumer. Growth potential for battery business in China The Chinese battery market is a large and fast-growing market. Over-reliance on a single customer Wal-Mart Stores is Gillette s major customer. Threats .IIM Indore Group 6 Section B Gillette s profitability is highly reliant on the performance of its razors and blades business. Opportunities New product launches Gillette is known for constantly introducing new products in the market with better technology and performance. Gillette has acquired a majority interest in the Fujian Nanping Nanfu Battery Company. A substantial portion of its revenues come from this sector. This price increase will help the company to accumulate more profits from the present level of sales. This has resulted to significantly improve the performance of the company s overall battery business and will have its impact on the future performance of the company. Price increases in premium shaving segments Gillette has been increasing the price of its razors and blades at an average rate of around 4% per year over the last ten years. operating results and financial condition if its strategic relationship with WalMart Stores is terminated for any reason. This new product launches will help the company to gain competitive advantage over its competitors. Any downturn in the sector or in Gillette s competitive position within it could have a serious negative effect on the company.

as well as private label products. The company s survival depends upon its ability to adopt itself in this kind of competitive environment. and even including Gillette s own three-blade disposable. including disposables and private label systems. which typically are sold at lower prices. 10. Its products compete with widely advertised. Organizational Structure Gillette India now has the organizational structure of P&G worldwide. Pressure on pricing power Gillette s pricing power is being further eroded by channel migration and increasing consumer resistance to paying significantly higher prices for innovation. Global Business Units (GBU s). This numerous imitations are threat to the company in the long term as they going to reduce the sales of the original products. The various GBUs are: Baby Care/Family Care Beauty Care/Feminine Care Fabric & Home Care .3.build major global brands with robust business strategies. P&G moved from four business units based on geographical regions to seven business units based on global product lines. well-known.IIM Indore Imitations / disposables are a threat to the Mach3 offering Group 6 Section B Gillette s ability to sustain a price premium and earn an attractive return on its extensive investment three-blade platform is threatened by the numerous imitators of the Mach3/Mach3 Turbo franchise. Competitive environment Gillette faces intense competition in most markets. branded products. The key elements are: 1. Pricing power is key to revenue growth in a mature category especially when Gillette s strategy has historically been to drive revenue growth per consumer and not volume growth.

Global Business Service(GBS). P&G has eight MDO.provide business technology and services that drive business success. Market Development Organizations (MDO) . Middle East & Africa located in Newcastle .build local understanding as a foundation for marketing campaigns. Different GBS Centers are: GBS Americas located in Costa Rica GBS Asia located in Manila GBS Europe.IIM Indore Snacks & Beverage Health Care Group 6 Section B 2. North America Asia/ India/ Australia Northeast Asia Greater China Central-Eastern Europe/ Middle East/ Africa Western Europe Latin America 3.

Oral B toothbrush .PII.7 o clock and Wilkinson sword Disposables-Wilkinson sword twin 2.Duracell Oral care.4. Vector. Sensor.Gel and foams Batteries. Mach3 Shave prep. Product Portfolio Gillette India has the following product lines: Double edge. Gillette presto Systems.IIM Indore Group 6 Section B 10.

Financial Analysis 10. 10. Share holding pattern 10% 2% Indian Promoters 47% Foreign Promoters Non. only 2% lies in the hands of institutional investors. In 2006. Profit & Loss Analysis .Institutional Investors Institutional Investors 41% Chart 2: Break up of ownership in 2006 There has been a great shift in the shareholding pattern of the company since its entry into Indian market in 1984.1.5.2. Gillette entered India through a joint venture as a minority shareholder.5. Out of the remaining 12%.5. 10% is owned by non-institutional investors and thus. Its share increased to around 75% in 2002.IIM Indore Group 6 Section B 10. almost 88% of the company was owned by the promoters (foreign and Indian).

This was primarily due to significant increase in employee cost and other miscellaneous expenses. Revenue figures further reduced by around 18% in 2002 to approximately Rs 385 crores. Although due to .Net sales of the company grew at a CAGR of 45% during the period 1997-2000. Gillette India ended the year with a net loss of around Rs 28 crores. In 2001. After that there was a downfall in the company and for the first time. revenues declined to Rs 453 crores from Rs 477 crores a year earlier.

00% -20. operating margin of the company declined from 20% in 1997 to 14% in 2000.00% -5. Since it s restructuring in 2003.00% 15.00% 5. yet there was a further fall of 3% in the revenue figures.00% -15. However. Revenues 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 Revenues Chart showing revenue figures over last 6 years Revenue Growth 20.IIM Indore Group 6 Section B restructuring.00% 0. .00% 10. The situation worsened further in 2001. net profit margin almost remained constant at around 5% over the time period. Similarly. company has recorded double digit growth rate in revenues.00% 2001 2002 2003 2004 2005 Revenue Growth Chart showing Revenue growth over last 5 years Despite higher revenue growth in late1990s.00% -10. and company reported a net loss of 6%. the damage was controlled to some extent in 2003. the growth rate was moderate in 2005 as compared to the figures in 2004.

82 crores.97 90. It entered into contracts with new suppliers for better raw material prices and also brought about a significant reduction in wastages. Gillette undertook restructuring initiatives and it took the company two years to revive its operations.00% 10. The net profit margin increased to 12. raw material cost as percentage of net sales declined from 46% in 2001 to 31% in 2003.87% .78% 3.00% 20.00% -5.90%. 30.68 crores in 2001.00% -10. Improved financial performance led to an increase of almost 120% increase in share prices over the year 2003.57 crores in 2003 from Rs 82. In 2003.71 by Business 2006 Q2.00% 2000 2001 2002 2003 2004 2005 Operating Margin Net Profit Margin Chart showing profitability margins over last 6 years Segmental Revenue Q2.00% 25. As a result of which. Revenue Segment Grooming Portable Power 113.IIM Indore Group 6 Section B In 2002. Further.00% 5.99 6.45% in 2003 and the operating margins stood at 25. 2005 % Change (YOY) 25.00% 15.00% 0. miscellaneous expenses reduced to just Rs 15.63 6. company recorded a net profit of Rs 44.

IIM Indore Oral Care Total 18.37 1.93% Oral Care 0.39 0.75 112.09 Group 6 Section B 25.46 79.60% .69% 24.54 139.17% 65.62 26.5 14.91 4.82 53.45% EBIT Segment by Business Grooming Portable Power 40.

but the profit figures declined by almost 80%.90% 4.24% The above table clearly shows that major chunk of company s revenues and profits come from Personal Grooming segment.12% 30.Total 41. In Q2 2006. In Q2 2005. although oral care division witnessed a growth of 26% in terms of revenues. Oral care contributed around 12% of the revenues and remaining came from portable power division (Duracell).65 28.39% EBIT Margins Grooming Portable Power Oral Care Table showing segmental performance 35.91% 29.10% 27.43% 8. almost 80% of company s revenues and profits came from grooming division.92 32. This was primarily due to increased .

It has become an all equity firm with no reliance on debt. debt equity ratio of the company reduced to 0 from 2002 onwards from 0.99 1. This way company reduced its financial risk to zero. All the debt was paid off with the funds obtained from the parent company as capital grant. 10.94 2.99 in 2001 to 3. Year Balance Sheet Analysis Debt Equity Ratio Fixed Ratio Assets Turnover 2000 2001 2002 2003 2004 2005 0.53% 1.5.00 0.76 3.42 Table showing key ratios After restructuring its operations in 2002-03.34 1. Thus.3. company has adopted a zero debt policy.IIM Indore Group 6 Section B competition leading to higher selling expenses. grooming division contributed more than 90% of operating profits. Ratios Net Profit Margin Assets Turnover ratio Leverage 2000 5. This shows that there has been improved and better utilization of company s fixed assets.79 .12 1.00 0.00 3.79 0. Fixed Assets turnover ratio has also increased from 1.42 in 2005.74 1.45 0. Thus. in this quarter.00 0.45 in 2001.

31 1.09% 1.00 1.29 1.99% 15.2001 -6.40 1.26 1.00 .45 2002 2003 2004 2005 1.00 1.00 1.13% 1.13 1.68% 12.45% 14.

in the subsequent years the ratio again declined due to higher cash balance maintained by the company. Further. Thus. Working capital turnover ratio increased from 3.74% in 2005. we can see that the fall in leverage has been very well compensated by an increase in profitability. Year Working Capital Turnover Ratio Current Ratio Debtors Collection Period Creditors Payment Period . During restructuring. If we look at the three individual components of ROE. assets turnover ratio has remained almost constant over the years.07% Table showing DuPont Analysis Group 6 Section B 2. However. reduced investment in debtors was compensated by an increase in loans & advances to suppliers. Gillette could not build on the benefits of restructuring in terms of better utilization of working capital.11 in 2001 to 3.Distributor.IIM Indore ROE 11. Gillette went for direct distribution model (Gillette. Return on Equity (ROE) of the company has increased from 10.33% 19.74% From the table we can observe that.35% 15.07 % in 2001 to 19.63% 19. Further. Thus.15% 10.93 in 2003 reflecting better working capital management by the company.Retailer) to reduce its investment in providing credit to retailers. This shows that the company is following a policy of increasing margins to maximize shareholder s wealth. the cash conversion cycle of the company reduced from 36 days in 2001 to almost 0 days in 2003. company concentrated on reducing its working capital requirements through efficient better inventory management and following a stringent credit policy.

23 56 52 49 53 .Inventory Holding Period Cash Conversion Cycle 2000 4.89 2.

15 24 70 41 2.5.02 24 71 47 1.66 2005 2.93 2004 2.75 2003 3.99 66 95 65 Group 6 Section B 36 (13) 0 (5) (12) Table showing Working Capital Management and Liquidity of Gillette 10.44 crores in 2001.IIM Indore 2001 3.71 41 111 57 1.11 2002 3. In fact. . Cash Flow Analysis Cash flows in a company can be broadly divided into three areas: Cash Flow from Operating Activities Cash flows from this segment have not seen any improved over the past four years despite a rise in revenues.33 2.58 crores in 2005 from a high of 124.4. cash flows have declined to Rs 76.02 24 68 32 2.

company paid off most its debt which has resulted in negative cash flows from this segment. During 2001. Cash from Investing Activities .Cash from Financing Activities Company has not issued any new equity over the last five years. Majority of the cash flows in this segment comprise of dividends paid by the company.

97 Table showing key ratios of Gillette and its competitors The above table clearly shows that Gillette has a better short term solvency as compared to its competitors. Gillette reported a margin of around 21% in this segment. Gillette has lower returns on its capital employed in the business. It is followed by Colgate Palmolive (15%) and HLL (12%) and Reckitt Benckisire (11%).31 56.82 as against the industry average of 4. But P&G Hygiene enjoys highest net profit margin of approximately 24% on a turnover of around Rs 520 crores.91 1.1 1. it has fixed assets turnover ratio of 1.82 6. However.32 4. Lever Gillette India Johnson & Johns. It has a current ratio of 1.21 4. 10.5. Similarly.01 74.IIM Indore Group 6 Section B Gillette has consistently incurred capital expenditure to purchase its fixed assets. . Gillette also has the reputation of high margin company in the industry.91 as against the industry average of 0. Companies Current Ratio Fixed Assets ROCE (%) Turnover Ratio Hind.97 Industry Average 0. Comparative Analysis In the personal care segment.97. company has not been able to make the best utilization of its fixed assets.5. Therefore.31.62 32.69 52.82 1.04 1. P & G Hygiene 0.6 5.91 71. HLL is by far the largest player in the industry. In the latest quarterly results. Further.93 164. company has been consistently earning interests on its loans & advances which has resulted in positive cash flows in few of the years.86 Colgate Palmolive 0.24 3.

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022.205.19 2.51 845.00 1-Jan-03 317.90 1-Jan-05 699.392. Year Share Price Market Capitalization (Rs crores) 1-Jan-01 699.20 2.95 1-Jan-06 735. Group 6 Section B Valuation The share of the company declined from Rs 700 in 2001 to Rs 317 in 2003 because of poor financial performance in terms of reduced revenue figures and margins.95 1-Jan-02 269.74 2. This was the result of increased profitability due to restructuring efforts done by the company.695. the share price more than doubled to Rs 713.00 1Jan-07 869. in 2003.292.95 2.5.6.22 1. However.90 in Jan 2004.00 1-Jan-04 713. The market capitalization of the company has increased from Rs 845 crores in 2001 to Rs 2695 crores in 2007. In the recent year. share prices have increased by around 20%.11 2.IIM Indore 10.06 Table showing share prices and market capitalization .802.

96 7.83 Dividend Dividend (%) 100 85 85 27. company has adopted a liberal dividend policy. Dividend Announcements Year End 2005 2004 2003 2002 2001 2000 1999 1998 32.IIM Indore Note: All prices are adjusted for bonus and rights issue Group 6 Section B In the recent years. In 2005. company declared 100% dividends.7 8.5 22.59 27.86 2.88 3.5 15 30 22 Table showing Dividend announcement .33 4.7 27.

IIM Indore Group 6 Section B 10. It is recognized by its fragrance and is seen as a macho brand. skin protects razor 10. Colgate Palmolive Colgate-Palmolive has three products in the shaving cream/gel/foam segment. this rich foam is mild on skin and helps guard against irritation. One variant is a creamy formula featuring palm extract to hydrate and moisturize skin.6. In the shaving cream market it has a good hold over the perception of the consumers. Proctor & Gamble Old Spice is one of the top brands across world in the shaving products category. It has a lot of products in the shaving products market. gel and foam). Palmolive shaving creams are enriched with revitalizing sea minerals. Old Spice is also present in after shave market and its after shave product is very dominant in the market.6. This also makes the brand much stronger than its competitor. It is has products in all the three categories (cream.1. Competitor s Analysis 10.6. this rich formula refreshes and against irritation. This cream in a long thin tube is very easy to use.2. They are formulated with soothing Aloe-Vera. . As you just put onto your face and use your shaver and it will get all your stubbles of your face leaving it nice and smooth.

It has two brands in the shaving cream segment. variants are few in terms of size. It comes in various fragrances. HLL has extended its brand Axe which is a success in the deodorant market to the shaving creams. . 10. But the quality of the product is satisfactory in spite of its near about Godrej is the domestic brand of shaving cream for Indian market.3.6. fragrance and packaging.4.6.IIM Indore 10. Axe and Denim. Although. The Axe shaving cream has very good awareness scores among the consumers. This is almost in the same segment as that of Axe in terms of price and product attributes. colors and its packaging also has many variants. It is targeting the price sensitive customer in the Indian market. Godrej invested heavily for the expansion in this market. it is still in the shopping list of many consumers. Recently Godrej has half the price than its competitors. Denim is another shaving cream from the house of HLL. The shaving cream from Godrej is among the lowest priced shaving cream in the market. They have bought a shaving cream manufacturing and marketing company in South Africa and are looking forward to some other alliances for the presence in global market. Group 6 Section B HLL Hindustan Lever Limited is the biggest player in the Indian FMCG market.

Although they do not account for a very significant market share but then also the awareness of these brands is fair enough to consider them as competitors.5. Other brands like Fa and Park Avenue focus on the regular consumer by portraying themselves as a sporty cool brand by associating with adventurous lifestyles.IIM Indore 10. Dettol and Park Avenue are also present in the market. Dettol is associated with antiseptic attributes and is quite popular with health conscious consumer. .6. Group 6 Section B Other Competitors Brands like Fa.

What is your age? Less Than 18 18-23 years 23-28 years 28-45 years Greater Than 45 2. What is your occupation? Government Service Private Service Business Self-Employed Student Homemaker Others (please specify) __________ 3.7. Customer Survey Questionnaire Customer Survey: Questionnaire Name: Date: Name of interviewer: 1. How often do you shave? Daily Alternate Days Twice a week Once a week At irregular intervals .IIM Indore Group 6 Section B 10.

IIM Indore 4. Where do you generally buy the shaving cream/gel/foam? Grocery shop Super market/ Departmental stores Specialty Stores Chemist shop Any shop near by . What type of shaving product do you prefer to buy? Shaving Cream Shaving Gel Shaving Foam Group 6 Section B 5.

Which brands of shaving cream/foam/gel are you aware of? (TOM tick only one) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 8. Which of the following brands do you use personally? (Tick only one) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 10. Which brands of shaving cream/foam/gel are you aware of? (Unaided recall) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 7. Which brands of shaving cream/foam/gel are you aware of? (Aided recall) a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 9. Which of the following brands have you bought since the last six months? .Group 6 Section B 6.

a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol e) Axe j) Blue Stratos n) Others (Please specify) 11. 5 Most Important) . Please rate the following sources of information according to the level of importance of each source (1 Least Important.

Purchase the same brand from some other store. How satisfied are you with Gillette shaving foam/gel? (if used) Highly Satisfied Moderately Satisfied Neither satisfied nor dissatisfied Moderately Dissatisfied Highly dissatisfied 13. 14. If you choose to shift then which Brand will you prefer? Page | 73 . If your FIRST preference is not available then what do you do? Purchase some other brand from the same shop/ store. If the price of your most preferred brand increases what would you do? Shift to another brand Still buy the same brand 15.IIM Indore Friends Family Retailer Advertisements Packaging ___ ___ ___ ___ ___ ___ Group 6 Section B Magazines or newspapers Saloons Any Other ___ ___ 12.

Please rate the factors given below on scale of 1 5 based on the importance they hold for you in purchase decision of a shaving cream/foam/gel.e. (1 least important to 5 most important) No Attributes / Benefits a b c d e f g h i j k l Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients Offers/Discounts Ratin g 17.IIM Indore a) Fa f) Denim k) V-John b) Old Spice g) Gillette l) 7 O Clock c) Palmolive h) Park Avenue m) Nivea d) Godrej i) Dettol Group 6 Section B e) Axe j) Blue Stratos n) Others (Please specify) 16. (1 fully dissatisfied to 5 fully satisfied Show cards with the ratings on them) Page | 74 . Please rate the following brands on the scale of 1-5 for the attributes mentioned below i. write 5 if you feel the attribute is good enough to fully satisfy you and mark 1 if you feel the attribute could not satisfy you.

Focus Group Discussion Format Introduction Presentation of the Purpose Discussion of the procedure FGD: Focus Group Discussion Page | 75 .8.IIM Indore Group 6 Section B Attributes / Benefits 1 No Old Spice 2 Brands 3 4 5 6 Brand Dettol Godrej Gillette Denim chosen in Q 9 abcdefgijklM Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients Offers/Discounts 10.

Park Avenue. Axe. Focus Group 1: 3 college students from SGSITS Indore (Age : 18-22) Focus Group 2: 6 employees (managerial level) of ICICI Branch at M. Gillette.Gillette) Page | 76 FG 2: not really. Denim. Godrej.Gillette Shaving gel/foam. Palmolive. (The group was loyal to the razor. (Old Spice. limited pocket money) FG 2: Every day 5) The reason for shaving?( official/social compulsions. Palmolive.Gillette) . also do not like to be seen unshaven (amounts to being unclean) 6) Does the brand of the cream/gel really matter for shaving? FG 1: no. only gets the job done. Dettol. but not only the traditional ones.IIM Indore Group 6 Section B We conducted two FGDs for our product. 3) Brands you are aware of? FG 1: came up with many brands. like to be clean shaven) FG 1: a time for oneself. like shaving FG 2: mainly office and personal (read wife ) compulsions. (This group too was loyal to the razor. Godrej. V-John) FG 2: came up with many national brands ( Old Spice. Dettol) 4) How often do you shave? FG 1: Once or twice a week (no social compulsion. Gillette. Following are the questions that helped us in moderating the entire discussion and the answers that majority in the group agreed to: 1) Type of shaving: cream/gel/foam FG 1: The college students now use gel and were using cream before FG 2: The office goers preferred foam for its ease of use and otherwise used cream/gel 2) What product first comes to your mind when I say Shaving cream? FG 1: The college goers were unanimous Gillette FG 2: The older persons went for Godrej/ Palmolive and the three younger ones said Gillette. We had also conducted interviews with barbers from the biggest salon in Rau.G Road (Age : 2545).

why? FG 1:just to try out new brands.) FG 1: smoothness. 13) Do you buy the product yourself or your family members buy it for you? FG 1: brand influenced by brother or father FG 2: self purchase 14) Have you seen an ad for shaving cream? FG 1:no.IIM Indore Group 6 Section B 7) Self shave or salon? why? FG 1: Self. More loyal to brands. 8) Have you switched brands? FG 1: yes. it is a time for one self. FG 2: no. not very recently. Creams aren t as important as aftershave and razors. Cinthol. Decision is made at the point of purchase FG 2: ads don t influence. get the job done FG 2: get the job done. hygiene. Many times decision is made before coming to store. Offers. for a change or unsatisfied. Denim 12) Information search? FG 1: ads don t influence. (Inference: They haven t settled to for a brand) FG 2: only sometimes. time factor. not harsh on skin 16) The attributes you look for in your shaving cream/gel/foam? Page | 77 . not really. one used electric shaver FG 2: Gillette. 15) What do you expect from a shave? (soft skin/get the job done/fragrance etc. have lots of time for self shave FG 2: Self. Other brands. Hygiene. FG 2: Don t have time to watch television. quite frequently. (Just one person was into experimenting with new products every time he goes to buy shaving cream/gel/foam) 9) If so. especially ads. 10) Where do you purchase? FG 1: the nearest place or Big Bazaar FG 2: with regular shopping 11) Currently which brand do you use? Are you satisfied? FG 1: Gillette.

They had 4 attributes that overlapped as shown. 17) What do you expect from a shaving cream? FG 1: smooth shave FG 2: good lather.IIM Indore Group 6 Section B The two groups together came up with 12 attributes after a few minutes. Offers/Discounts. Brand name. smooth and quick shave 18) Are you aware that weight to weight Gillette is costlier than all other brands? Page | 78 . Availability in stores . FG 1: Price Stylish package design Antiseptic attribute Color of the cream/foam/gel Lather formation Availability in stores Offers/Discounts Brand name FG 2: Ease of Use Keeps the skin soft Ingredients Fragrance Lather formation Availability in stores Offers/Discounts Brand name COMMON ATTRIBUTES: Lather formation.

10. Age Profile of Sample Population 10.9. very satisfied. 10. Shaving Product Preference Page | 79 .IIM Indore FG 1:yes FG 2:yes Group 6 Section B 19) Do you know the difference in pricing of Gillette? FG 1:The group wasn t surprised with the price catalogue we provided FG 2: The group was surprised 20) Would you still keep buying Gillette even if the price was further raised? FG 1: Depends on the pocket money we get FG 2: Yes 21) What do you think of Gillette? FG 1: The best brand FG 2: Better compared to others 22) Why Gillette? FG 1: Good quality of shave FG 2: Better shaving experience.

12. Recall Pattern 77% Unaided Recall of Gillette Brand Top of Mind Recall of Gillette Brand 56% Page | 80 .11.IIM Indore Group 6 Section B 10. Place of Buying 10.

14. Brand Satisfaction of Gillette 10. Brand Loyalty in Shaving Cream/Gel/Foam Market If your FIRST preference is not available then what do you do? Option 1 Page | 81 Purchase some other brand from the same shop/ store .13.15. User Preference 10.IIM Indore Aided Recall of Gillette Brand 89% Group 6 Section B 10.

16. Price Sensitivity in Shaving Cream/Gel/Foam Market If the price of your most preferred brand increases what would you do? (Q 14) Option 1 Option 2 Shift to another brand Still buy the same brand Page | 82 .IIM Indore Option 2 Purchase the same brand from some other store Group 6 Section B 10.

Brand Preference based on Individual Attitude score .17.IIM Indore Group 6 Section B 10.18. Ao = Attitude toward the object (brand) bi = belief about the brand s possession of the attribute ei = evaluation of the attribute as being good or bad n = there are a limited number (n) of attributes which the person will consider 10. Fishbein Analysis Fishbein Attitude Model n Ao = biei i=1 where.

Page | 83 .

574 .082 1 2 3 4 5 6 7 8 9 10 11 12 2.768 .501 1.20.000 Extraction Sums of Squared Loadings Total 2.665 12.665 12.IIM Indore Group 6 Section B 10.088 83. Page | 84 . Average attitude perception score of each brand 10.208 15.880 1.873 52.501 1.411 .435 95.510 9.861 98.905 1.078 100.905 1.383 62.208 39.163 3.208 39.231 Extraction Method: Principal Component Analysis.164 .029 6.082 70.963 .208 15.272 92.164 % of Variance 24.19.510 9.403 4.873 52.111 77.500 .699 8.491 88.217 1.922 Cumulative % 24.699 Cumulative % 24.383 62.837 .426 2.977 6.266 .880 1. Factor Analysis Total Variance Explained Initial Eigenvalues Total % of Variance 24.781 4.

455 .018 .113 4 -.597 .138 .144 -.153 .230 .317 -.628 .302 -.310 -.677 . Page | 85 .341 .065 .653 .197 -.203 .329 .584 .087 -.373 -.347 .084 -.589 -.596 3 .048 -.379 2 .391 .317 cream/foam/gel Foam formation Antiseptic attribute Ease of Use It keeps my skin soft Ingredients Offers/Discounts Extraction Method: Principal Component Analysis.006 .390 .145 -.744 .IIM Indore Group 6 Section B Component Matrix(a) Component 1 Price Availability in stores Fragrance Stylish package design Brand name Color of the shaving -.011 -.654 .049 .011 -.023 .086 . a 4 components extracted.026 .654 .448 .742 .366 .446 -.549 .429 .

5 1.0 0.5 0.5 2.IIM Indore Group 6 Section B Scree Plot 3.0 2.0 1 2 3 4 5 6 7 8 9 10 11 12 Component Number Page | 86 .0 Eigenvalue 1.

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21.IIM Indore Group 6 Section B 10. Perceptual mapping Page | 87 .

IIM Indore Group 6 Section B Page | 88 .

IIM Indore Group 6 Section B Page | 89 .

4 3 2.3 3 3.0 Number of Cases in each Cluster Cluster 12 36. Cluster Analysis Two Cluster Analysis Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 4.8 3 2.4 2 1.7 2.000 Valid Missing Three Cluster Analysis Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 2.8 2 3.8 .2 2.7 2 2.1 1.IIM Indore Group 6 Section B 10.22.8 2 4.9 3.0 3.000 48.000 84.8 2 2.000 .

Number of Cases in each Cluster Page | 90 .

6 2.5 2 2.000 .8 3.0 2.000 28.2 4 3.6 Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing 16.5 3 2.000 22.IIM Indore Cluster 1 2 3 Valid Missing 28.000 84.6 2 2.5 3 1.000 30.000 10.000 Page | 91 .2 3 3.000 84.6 3 3.000 Group 6 Section B Four Cluster Analysis Final Cluster Centers Cluster 1 Attributes Price Sensitive Point of Purchase Additional Features 4.000 34.000 .2 3.

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